#BONUS

When will bonus / ማበረታቻ will pay
Holidays
Good performance/profitability
How to calculate BONUS
Tax payable amount
Net bonus
Bonus Calculation
Salary 65,000 (taxable income)
2 months salary (bonus amount)
Annual performance (performance period)
Gross bonus(salary*2) = 65,000*2=130,000
Bonus per month (gross bonus/12) =130,000/12=10,833.33
Total taxable income (salary + bonus per month) =65,000+10,833.33=75,833.33
Income tax payable=75,833.33*.35-1,500=25,041.67
Income tax paid=65,000*.35-1,500=21,250
Income tax d/c per month=25,041.67-21,250=3,791.67
Income tax per year=3,791.67*12=45,500
Net pay (gross bonus-tax) =130,000-45,500=84,500
ENTRY
Bonus expense……..130,000
Income tax payable ……….45, 500
Cash……………………………..84, 500
Income tax payable…….45,500
cash ……………………………..45,500