Individual tax calculation method of resignation compensation

The individual tax calculation method of resignation compensation is as follows:

1, calculated at 3 times of the average salary of employees in the previous year, and no tax will be levied if it does not exceed;

2. Calculate the monthly salary, and calculate the personal income tax according to the average working years of the employees of this enterprise (12 years for those who exceed 12 years), and take their business as their monthly salary income;

3. After deducting the monthly insurance premium, compare it with the deduction standard. If it does not exceed the deduction standard, there is no need to pay tax. Step 4: If the deduction standard is exceeded, calculate the monthly personal income tax. Step 5: Calculate the total tax payable, that is, the product of monthly tax payable and working years (if it exceeds 12 years, it will be calculated as 12 years).

When calculating tax, you can deduct the following two items:

1, 3 times the average salary of employees in the previous year;

2. Social insurance premiums paid by individuals in the last month after the termination of the labor contract.

Legal basis:

Article 2 of the Individual Income Tax Law of People's Republic of China (PRC) shall pay individual income tax:

(1) Income from wages and salaries;

(2) Income from remuneration for labor services;

(3) Income from remuneration;

(4) Income from royalties;

(5) Operating income;

(6) Income from interest, dividends and bonuses;

(7) Income from property lease;

(8) Income from property transfer;

(9) Accidental income.

Individual residents who obtain income from items 1 to 4 of the preceding paragraph (hereinafter referred to as comprehensive income) shall calculate individual income tax according to the tax year; Non-resident individuals who obtain income from items 1 to 4 of the preceding paragraph shall calculate individual income tax on a monthly or itemized basis. Taxpayers who obtain income from items 5 to 9 of the preceding paragraph shall calculate individual income tax separately in accordance with the provisions of this law.