Social Security What is the impact of low social security contribution base

It is a legal requirement for employers to purchase social security for their workers, and nowadays many companies are paying social security for their employees according to the minimum contribution base. So, what is the impact of low social security contribution base? Many workers are not clear about these, the following I organized the following content for you to answer, I hope to help you.

The first from the personal income tax: on the surface, the minimum base payment seems to pay more than the full amount of wages in hand. But in fact, because the personal income tax is deducted after all the insurance to calculate the amount to be paid, so, due to less deducted part of the insurance, resulting in an increase in the amount of tax. Not only did the individual not get more paychecks, they actually had less income.

Secondly, from the direction of the funds: the amount of money paid by the individual social security, is to enter the personal pension account, pay less, the future retirement will be less. Now pay the insurance, is tantamount to give their own savings. It is just a matter of getting it now and after retirement.

The unit pays social security in accordance with the minimum base, which means that the company can save up to about 30% of the expenditure, while the individual's future pension will be very low. Social security is underpaid, the company has a great benefit, the individual has a lot of harm but no benefit. Social security is underpaid, the biggest benefit is the company, there is no benefit to the individual. And the individual has to pay more personal income tax for this, which is the truth.

How is the social security contribution base

The social security contribution base is generally the previous year's salary income for the contribution base.

(1) the employee's salary income is higher than 300% of the average salary of local employees in the previous year, to 300% of the average salary of local employees in the previous year for the contribution base;

(2) the employee's salary income is lower than the average salary of local employees in the previous year of 60% of the average salary of local employees in the previous year for the contribution base;

(3) the employee's salary is between 300% and 60% of the average salary of local employees in the previous year;

(3) the employee's salary is between 300% and 60% of the average salary of local employees in the previous year. (3)If the employee's salary is between 300% and 60% of the average salary of the local employees in the previous year, it shall be declared according to the actual situation. Employee salary income can not be determined, its contribution base according to the local labor administration department announced the average salary of local employees in the previous year for the contribution to determine the wage.

The unit according to the minimum base to pay social security legal

Some units in order to save costs, according to the minimum wage or a lower than the actual wage of employees as the base to buy social security for employees, which is unreasonable and illegal.

In order to pay social security for their employees based on their "actual salary", some organizations will sign a contract with the worker that is lower than the agreed salary, and claim that this will allow the worker to pay less personal income tax. This kind of misrepresentation and concealment of wages is a violation of the law for both the employer and the worker to evade taxes. Workers should not enter into such agreements with employers.

If a worker encounters an employer who underpays social security, he or she can contact the local social security audit department and save the labor contract, pay stubs, bank card transaction records, and other evidence if he or she wants to protect his or her rights and interests. Ask the company to make up for their social security contributions. Of course, you will have to make up for your personal contributions, but the enterprise will have to pay about three times as much as the individual. At the same time, the enterprise needs to pay the late fee for the retroactive payment. The late fee for the individual part of the retroactive payment is also borne by the enterprise.