A: due to the exemption of the economic compensation for the labor contract, there is no need to pay personal income tax in the tax-free amount, and the amount of the tax should be calculated when the amount exceeds the allowance. The amount of disposable economic compensation income obtained by individuals is relatively large, and the disposable economic compensation income obtained by individuals can be regarded as a monthly wage income, which is allowed to be averaged within a certain period of time. The specific means are as follows: the personal income tax is divided by individual income in the enterprise, the monthly salary and salary income of the individual, and the individual income tax is calculated according to the tax law. The number of working years of the individual in the enterprise is calculated according to the actual working years, and the calculation is done according to 12 in more than 12 years. When calculating the individual income tax, the actual social security fund should be deducted. Therefore, the specific formula is: should the personal income tax is withheld individual income tax (={[economic compensation Jin Zong income allowance - the actual paid social insurance and housing provident fund), the unit of work experience: personal income tax deduction] * applicable tax Susuankouchushu} * this unit of work life. For example, A employees in B company for 13 years, paid social security fund as part of the 100 thousand, to terminate the labor contract of economic compensation in 600 thousand, Dalian city in 2015 to terminate the labor contract of economic compensation allowance of 208170 yuan, the staff should pay tax should be: {[(600000-208170-100000) / 12-3500] * 25%-1005} * 12=50397.5 yuan [legal basis] The State Administration of Taxation "on individuals for labor contract economic compensation levy personal income tax issues notice" [] provisions ofthe [1999]178: "taking into account the one-time economic compensation income obtained by the individual large amount, and dismissal of personnel may not have fixed income in a period of time, therefore, for a one-time economic compensation income derived by individuals, can be regarded as a good months of wage and salary income, allowing the average within a certain period of time. The specific means are as follows: the personal income tax is divided by individual income in the enterprise, the monthly salary and salary income of the individual, and the individual income tax is calculated according to the tax law. The number of working years of the individual in the enterprise is calculated according to the actual working years, and the calculation is done according to 12 in more than 12 years." The housing provident fund, medical insurance, basic pension insurance and unemployment insurance fund paid by the individual according to the proportion of the state and local government should be deducted when the tax is paid." The Ministry of Finance and the State Administration of Taxation "on the individual and the employer to terminate the labor relations have made a one-time compensation income exemption of individual income tax issues notice" [] tax [2001]157 stipulates: "the one-time compensation obtained by individual labor relations with the employer's income (including the payment of the employer, economic compensation living allowance and other benefits costs), its revenue within the local average wage of workers 3 times the amount of the previous year, exempt from personal income tax; the exceeding part in accordance with the" State Administration of Taxation on personal due notice to terminate the labor contract for economic compensation levy personal income tax "(Guoshuifa No. [1999]178) on the calculation of personal income tax provisions." Dalian Local Taxation Bureau "on the adjustment of one-time compensation income exemption of individual income tax and housing provident fund personal income tax deduction base limit notice" [[2016]211] large tax provisions: "since August 1, 2016, our city person because of one-time compensation and employers in labor relations and obtain the solution, in 208170 yuan within the part, exempt from personal income tax; the exceeding part, in accordance with the" Notice of the State Administration of Taxation on income from labor contracts for economic compensation levy personal income tax "(Guo Shui Fa 1999 No. 178) the relevant provisions of the calculation of personal income tax." Dalian Local Taxation Bureau has adjusted the standard of tax exemption every year, and should pay attention to the update of information.