Tax is deducted. There will be a tax deduction of 5505 yuan. Redundancy compensation compensation for laid-off workers is a kind of compensation obtained by the company according to law when dismissing employees. However, according to national regulations, employees should pay taxes when their income exceeds a certain amount. The tax deducted from the compensation fee of 80,000 yuan for layoffs is 5,505 yuan, which refers to the tax levied by the state on enterprises, collectives and individuals in cash or in kind. It is tax deductible for employees to get economic compensation, but it will be more difficult economically after employees are laid off by enterprises.

Is the company's redundancy compensation tax deductible?

Notice of the Ministry of Finance and State Taxation Administration of The People's Republic of China on the Exemption of Individual Income Tax from One-time Compensatory Income Obtained by Individuals Due to the Termination of Labor Relations with Employers CaishuiNo. [2001]157] The one-time compensatory income (including economic compensation, living allowance and other subsidies paid by employers) obtained by individuals due to the termination of labor relations with employers shall be exempted from individual income tax; The excess part shall be calculated and collected in accordance with the relevant provisions of the Notice of State Taxation Administration of The People's Republic of China on the Collection of Individual Income Tax on Economic Compensation for Termination of Labor Contract (Guo Fa [1999]178).