No Worry! New Social Security Rule Won’t Bite You!
© Image | 中国政府网
Enterprises have the legal responsibilities to pay social security for their employees, However, many companies in China refuse to do their due parts and they even brazenly play dirty tricks on the social security issue. Following are the three most commonly seen dirty methods:
Some companies declaredly refuse to pay social security fees, they attach so much attention to exploring profit-making strategies but the least to their employees’ legal rights.
Some companies seemingly have honored their promises to pay social security fees for their employees, however, they don’t pay full social security fees according to employees’ monthly salaries.
Still, others craftily require employees to sign agreements which literally announce that employees willingly abandon their legal rights to enjoy the full social security. Actually, agreements like that are invalid according to the related legal rules.
The new rule is ready to go ahead. Late last month, many companies received a notification from local tax bureau that if they had not pay social security fees or had not pay the full social security fees for employees, they later should immediately make their wrongdoings right.
That quickly aroused mountains of worries from companies. Technically, their worries come directly from the fee-recharging will greatly burden themselves because of the new social security fee-charging rule is about to carry out.
Message sent by the TAX bureau
To ease the worries caused by the about-to-launch new rule and pacify anxious entrepreneurs, Chinese premier stressed on the executive meeting of the State Council, held on Sept 18th, that new burdens should not be further added to companies before the actual implementation of the new rule.
© Image | Google
Following are the premier’s five requirements
Local social security fee-charging rules should remain unchanged before the new rule in effect.
Grassroots social security fee-levying departments are not allowed to arbitrarily adjust fee-levying rules or take one-stroke fee-charging measures.
Higher-level social security fee-levying departments should dispatch staffs to supervise the works of subordinate departments.
Any improper enforcement will be severely punished.
The issue of reducing social security ratio should put on research schedule. The reduction of social security ratio will ease both employers and employees’ burdens.
The full implementation of the newly revised social security fee-levying rule has following three significance.
© Image | Google
Fee-levying management and efficiency will be improved, costs will be further lowered and service will be optimized.
To explore the new possibilities of deepening the reform in social security system.
To further stimulate the market players’ vitality.
After the actual implementation of the new social security rule, there may emerge the biggest change, that is the social security ratio will drop. However, China’s supervision of social security will not be relaxed.
© Image | Google
The phase Ⅲ golden tax project is powerful enough to match social security declaration information with individual income tax (IIT) information, making it much easier for the supervision on social security.
Thus, even the tax bureau takes no actions to recharge companies unpaid social security fees, the supervision over social security will gradually be put on schedule.