New social security regulations May 2023

Reducing Social Security Premium Rates from May 1, 2023

On March 29, the Ministry of Human Resources and Social Security, the Ministry of Finance, and the Ministry of Taxation jointly issued the Notice on Issues Relating to the Stage-by-Stage Reduction of the Premium Rates for Unemployment Insurance and Workers' Compensation Insurance.

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The Circular makes it clear that

Clearly since May 1, 2023, continue to implement the policy of phased reduction of the unemployment insurance premium rate to 1%, and continue to implement the policy of phased reduction of the premium rate of work-related injury insurance, the implementation of which has been extended to the end of 2024.

Added:

And has there been a reduction in social security costs from January 1 to April 30, 2023?

In fact, according to the Ministry of Human Resources and Social Security 2022 issued a "notice on doing a good job of unemployment insurance to stabilize jobs and improve skills to prevent unemployment work" is clear:

Continuing the implementation of the policy of phased reductions in the rate of unemployment insurance and industrial injury insurance premiums for one year, the implementation period until April 30, 2023.

That is to say, the newly released policy is in line with this policy, in other words, the social security reduction policy continues to be implemented until the end of 2024.

Disability Employment Security Deposit

Levy Reduction Extended Until the End of 2027

March 26, the Ministry of Finance issued a "Notice on the Continuation of Preferential Policies on the Employment Security Deposit for Persons with Disabilities," which makes clear that the continuation of the policy of graded reduction of the payment of the security deposit for persons with disabilities will be extended until the end of 2027.

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The document Clarified 2 points:

1. Continuation of the implementation of the graded payment reduction policy for the employment security fund for persons with disabilities. Among them:

If an employer arranges for the employment of persons with disabilities to reach a ratio of 1% (inclusive) or more, but does not reach the ratio stipulated by the people's government of the province, autonomous region, or municipality directly under the central government in the location, it will pay 50% of the stipulated amount of the contribution to be paid to pay the security fund for the employment of persons with disabilities;

If the employer arranges for the employment of persons with disabilities to be less than 1%, it will pay the security fund for the employment of persons with disabilities according to the stipulated to the Employment Guarantee Fund for Persons with Disabilities.

2. Enterprises with 30 or fewer employees in service continue to be exempted from the payment of the Employment Guarantee Fund for the Disabled.

Supplementary:

Disability Insurance Premium Payment Standard

Disability Insurance Premium Annual Payment = (the number of employees on duty in the employing unit in the previous year×the ratio of employment of disabled persons arranged by the people's government of the province, autonomous region, or municipality directly under the central government in the place where the employing unit is located - the actual arrangement of disabled persons' employment in the employing unit in the previous year) (the number of persons with disabilities actually employed by the employer) × the average annual wage of the employed workers of the employer in the previous year.

Note: The upper limit of the levy is two times the local average social wage.

Preferential Policies on Income Tax for Small and Micro Enterprises

Extended to the end of 2024

On March 27, the Ministry of Finance and the State Administration of Taxation (SAT) jointly issued a bulletin on the Preferential Policies on Income Tax for Small and Micro Enterprises and Individual Businesses. It clarifies that the preferential policies for small and micro enterprises and individual households will be extended until the end of 2024.

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The document specifies:<

1, the small micro-profit enterprises annual taxable income not more than 1 million yuan part, reduced by 25% including taxable income, at a rate of 20% pay enterprise income tax.

2. On the basis of the current preferential policies, half of the individual income tax will be levied on the portion of the annual taxable income of individual industrial and commercial households not exceeding one million yuan.

Expansion:

Small micro-profit enterprises, as referred to in this announcement, refer to enterprises engaged in industries that are not restricted or prohibited by the state, and that also meet the requirements that annual taxable income does not exceed 3 million yuan, the number of people employed does not exceed 300, and the total assets do not exceed 1 million yuan. Total assets not exceeding 50 million yuan and other three conditions.

The number of employees includes the number of employees who have established labor relations with the enterprise and the number of labor dispatch workers accepted by the enterprise. The number of employees and total assets shall be determined by the quarterly average of the enterprise for the whole year. The specific formula is as follows:

Quarterly average = (beginning of the quarter + end of the quarter) ÷ 2

Quarterly average for the year = the sum of the quarterly averages for the year ÷ 4

If an enterprise opens for business or terminates its business activities in the middle of the year, it shall take its actual business period as a tax year to determine the above relevant indicators.