What kind of tax is social security tax?

Social security tax mainly refers to a purpose tax, which takes the wages paid by enterprises and the wages paid by employees and employers respectively as the tax targets, and the tax is mainly used for various social welfare expenditures.

In fact, in China, social insurance payment is commonly known as "five fees in one", including old-age insurance, medical insurance, unemployment insurance, maternity insurance and industrial injury insurance. Due to the lack of legal uniformity and compulsion, many enterprises (especially private enterprises and small and medium-sized enterprises) deliberately evade the obligation to pay social insurance premiums. They either extend the probation period of new employees, or change contract workers into laborers, or simply conceal, falsely report or underreport regular employees, and try not to pay or underpay social insurance premiums, thus avoiding the social responsibility of employers to employees and seriously infringing on the rights and interests of workers and employee welfare.

How to optimize social security tax?

1. Levy social security tax as soon as possible. According to the corresponding relationship between social security tax and social security expenditure, China should adopt a financing mode in which social security tax accounts for a large proportion of social security expenditure (social security tax is basically the same as social security expenditure, and general tax accounts for a large proportion of social security expenditure); From the point of view of financing, the mode of complete accumulation is not feasible, and it is advisable to adopt the pay-as-you-go system as the main mode, supplemented by the partial accumulation system (pay-as-you-go system is adopted at the beginning, and it will be transferred to partial accumulation when the time is ripe); According to the different settings of the insured objects and insured items, it is advisable to adopt a mixed social security tax model (there are other project-based social security tax models and object-based social security tax models), in which urban workers are taxed separately according to the insured items and farmers are taxed at a fixed rate.

2. Establish a basic insurance compensation fund. At present, the social insurance premiums paid by individual employees account for a very small proportion in the social security fund, which is closely related to the fact that only a small part of the social security expenses is included in the labor income obtained by individuals from the government. Under the socialist market economy system, the government set aside a piece of social endowment insurance from the accumulation of state-owned assets for the transition period of the old and new systems, which is a kind of compensation for the historical achievements created by workers. In view of the current shortage of financial funds in China, it is reasonable to extract part of the transfer income from the stock of state-owned assets to establish an insurance compensation fund. Therefore, it is not only in line with the principle that the government, enterprises and individuals share the social security expenses, but also in line with the fundamental requirements of establishing a modern enterprise system to establish a basic insurance compensation fund with the proceeds from the transfer of some state-owned assets.

3. Supplemented by other forms of financing. In the case that the basic insurance compensation fund established by the transfer of some assets still cannot meet the needs, some state-owned assets can be auctioned or some state-owned land use rights can be transferred with compensation to supplement the social security fund with auction income and transfer income. In addition, after the establishment of the social security tax system, the direct explicit liabilities, direct implicit liabilities and contingent implicit liabilities of social security funds may gradually emerge. Therefore, some social security funds should be raised by reducing state-owned shares, realizing state-owned assets, and expanding the issuance of social security lottery tickets and social security bonds to make up for the funding gap left over from history. In addition, the retained part of the social security fund (balance of payments) can be used for direct investment (such as purchasing government bonds) or entrusting trust and investment companies to make indirect investment, so as to ensure the preservation and appreciation of the social security fund and enrich its sources.