I saw a friend sharing an article in a stock group today. I feel very good and world like to share with you:
Wei Haozheng: Policies, Impacts and Countermeasures for Social Security Collection and Taxation
(If you have time, please click the link to read the full acticle)
In the past, there were usually three modes of collection methods in social security: 1) The Social Security Bureau was responsible for management and collection. That is, it is managed by the Social Security Bureau or the Human Resources and Social Security Bureau. The number of people who have supervised the payment is verified, the base is approved, and the specific collection of social insurance is responsible. 2) It is administered by the Social Security Bureau but entrusted by the Taxation Bureau. The Social Security Bureau will resolve how many people have to pay and what the salary is. When the actual collection is made, the Social Security Bureau entrusts the tax bureau to collect it. The above two models are the most important models of social insurance management in China in the past ten years, and each accounted for 50% each. 3) Social security is administered by the tax bureau and is also levied by the tax bureau. There are two cities in the country, Guangzhou and Xiamen, which are implemented in this way.
This is the existing social insurance management model. These are related to a very core question: How many employees are in the company when paying social security, and the total amount of wages. In the past ten years, these two data were reported by the company to the Social Security Bureau. The Social Security Bureau The base of the number of people who declare the number of people to go to implement the management of the collection. Basically this is the previous model.
In the past, the company itself reported that there may be 300 people and 200 people. The total salary of the company is 36 million yuan a year, and it is reported to 15 million yuan. The former social security bureau collected social insurance according to the number of reports. The former social security department included some social security. The department entrusted the tax bureau to collect the evidence. Everyone knows the actual situation of the enterprise. It also knows that the cost pressure of the insurance is very large. Therefore, in the past, when it was law enforcement, it was basically relatively loose. So basically, how much is reported by the company, unless it is reported or complained, or some companies are checked and checked every year, even if this time involves the verification of actual wages and the actual number of people, there is still artificial space for manoeuvre. Inside. In this context, although the legal standards of social security in the past are very strict, enforcement is weaker.
The Social Security Bureau and the labor bureaus around the country do not have a particularly good way to grasp the actual labor situation of the enterprise. Whether it is the actual number of employees or the scale of wages, it is entirely declared by the enterprise. Some data reflect that there may be more than 70% of companies in China, and it is illegal in social security payment. The first one is that the number of people who pay the insurance is not enough, and some of them are not paid. The second is that the payment base is wrong. The monthly salary is $10,000. When the base is approved, the enterprise often reports 4 or 5 thousand. Every place in the country, including the Social Insurance Law, also stipulates the minimum base for social insurance contributions. How much is your salary, and you pay according to the minimum base, so the concept of the minimum payment base is formed. Most places are basically based on the social average. 60% of the salary is set, and a small part is set according to the minimum wage. In the past, social security behaviors of enterprises were either not paid or paid according to the minimum base. In fact, our law always said that according to the total amount of wages, if the total amount of wages is less than the minimum payment base, it is based on this minimum base. Law enforcement and law enforcement capabilities related issues, including the actual cost pressure of the company formed a part of the employees do not pay insurance, some employees in accordance with the low base, the company is completely in accordance with the law to pay social security is very few. This is the current status quo.
What is the main change in this policy adjustment? The main change is that from January 1st, 2019, social security, including the verification and collection of the basics, is not covered by the Social Security Bureau. It is managed by the tax bureau, and now it is just the national tax. The whole thing is done by the tax bureau. What will happen in the future? The biggest change is: for example, there are 300 people in the company, each person pays 10,000 yuan a month, and the company’s finances must be accounted for. To solve the problem of corporate income tax, a total of 300 people have issued 3 million yuan. This is going to the tax bureau. On the one hand, in order to solve the tax compliance, we cannot evade taxes. On the other hand, we must solve the problem of the company’s accounting. Therefore, the tax bureau has mastered the number of employees with real business, including the concept of total employee wages. To file a tax return, the tax bureau will know how much money is paid after the tax is paid. The tax reform policy will change the social security collection on January 1st, including the approval of the social security fund by the tax bureau. This is the pressure that many companies feel today, that is, the people we mentioned earlier called the social security tax. Or it is a fee-changing tax, which is from this place.
A timeline for the policy is on January 1 of next year, and it will be completely managed by the tax bureau. If you stand at the perspective of the tax bureau, it is probably starting in 2016. Everywhere in the country, we have launched the Golden Three System. For all the tax data of the country, how much money a company sent to this person, the company’s tax There are all in the base system. Therefore, the tax bureau has actually mastered the company’s data. The company has 300 employees and a monthly salary of 3 million. Therefore, it needs to pay 36 million as the social security contribution base of the company. Since this matter is the responsibility of the tax bureau, and the social security is also administered by the tax bureau, it means that after the tax bureau has mastered the tax data, if the social security is not collected according to the data, it may be a behavior of misconduct and administrative inaction. Therefore, we have reason to believe that after January 1st next year, our social security collection, management, and verification will be completely different from the previous social security bureau’s concept of collection and management, including the strength is also completely different, including its very strong Jinsan. The system also has the ability to directly transfer taxes and fees from corporate accounts. It also has a variety of data for enterprises. It also has a very strong law enforcement team. The most important thing is that if the tax bureau does not do it, it is a misconduct. Is an administrative inaction, and this is the source of the whole stress today.
This is the first part of the change in government policy. This is the first part I have repeatedly told everyone. Now everyone is also very concerned about the revision of the Individual Income Tax Law. There are also some changes in the individual tax law after the announcement on August 31. For example, the piece mentioned in the article has a certain relationship with the social security that I just talked to you. The personal income tax law talks about the concept of comprehensive income, and the income of laborers’ wages, labor costs, remuneration, and royalties. The four incomes are combined to form a comprehensive tax return, which is paid in advance every month, and the annual liquidation is done in the second year. This is wage income and labor income. There will still be some operational problems in this. Generally speaking, the pressure on law enforcement of social security faced by today’s enterprises starting on January 1st will be very large. In addition, some recent reports have mentioned that a company such as Changzhou in Jiangsu has reported to the tax bureau that it has paid more than 2 million social security contributions in the past 10 years. There is also a report that some companies in Dongguan and Shenzhen are now paying social security. Supplementary 20 million, 30 million, plus 10 years, including the time when Guangzhou approved the insurance base, when the company reported that the social security salary base is inconsistent with the tax base, the tax will be returned directly, allowing the company to resubmit Cardinality.
2. Impact of policy changes
We have talked before that the social security consumption base should be the total amount of wages. According to the data I have learned so far, it is probably that there is a total amount of tax paid in the tax bureau system in the country. The social security department also has a data for the social security. The total amount, if strictly in accordance with the data reported by the tax bureau, I see some statistics show that in 2017, the state can levy about 2 trillion social security. This is a very large amount of data. And if we look at another data at the same time, our private enterprise probably had a total net profit of 2 trillion yuan last year, so it means that if strict enforcement is carried out, I am afraid that most private enterprises today have no profit, I am afraid they have to close the door. So what is the impact?
The first is the impact on the current cost of the enterprise. The most affected by the social security tax is the labor-intensive enterprises. According to our observation, there are probably a few industries that are affected. The first one is the service industry. For example, Logistics industry, hotels, catering, before the IPO prospectus of the hot pot faucet Haidilao in the catering industry, we saw that it paid a total of more than 88 million yuan in the past three years. Haidilao is very good in the catering service industry. A powerful company, its social security payment in the past three years also has such a big problem. Therefore, it is basically judged that the domestic catering industry can think that there is no completely compliant enterprise. Even the proportion of employees who have paid social insurance will not exceed 20%, and more than 80% of them will not pay. Therefore, it means that the impact on the service industry is that if there is no payment in the past, the company will increase the cost by at least 30%, and the employee will increase the cost by at least 10%. Therefore, the tax method is reduced. At the same time of taxation, the cost of social insurance premiums for both companies and employees will inevitably increase greatly, and both employers and employees will add up to 40%. We once did a simple calculation for a restaurant in the catering industry. It used to have employees No. 5 and No. 60 in one year. The original net profit for the year was almost 2 million and nearly 3 million, provided that about 20% of the employees were at the lowest base. Social insurance paid; if it is to be fully compliant now, all employees will pay five insurance and one full amount in full, and the enterprise cost will increase by almost 1.5 million a year. This is already a pretty good restaurant company. What we want to say is that the pressure on the company is very big.
Social security is unified by tax collection. If strictly implemented, the impact on private enterprises that have consistently paid less and missed social security seems to be much higher than our imagination and expectations.
The impact of social security unified taxation in China next year