Can the social security paid by the company to employees be tax deductible?

The social security paid by the company to employees can be tax deductible.

Specifically, employees can get a certain percentage of personal income tax relief from the social insurance paid by the company, such as pension insurance, medical insurance, unemployment insurance, etc. Employees need to provide relevant tax payment certificates and social security payment certificates to the tax authorities in order to enjoy the corresponding tax credit.

The process for the company to pay social security for employees is as follows:

1. Companies register and obtain social security registration certificates: In most countries, companies need to register with local government agencies and obtain social security registration certificates before they can pay social security for their employees.

2. Determine employee social security types and payment ratios: The company needs to determine which social security types and payment ratios employees should pay according to local policies, employee status and other factors.

3. Collect employee's personal information and salary data: The company needs to collect employee's personal information and salary data in order to calculate the amount of social security that should be paid.

4. Payment of social security fees: The company needs to pay the social security fees of employees to the social insurance fund or relevant departments according to the time and method stipulated by local policies.

5. Update employee social security records: The company needs to update employee social security records in time, including payment time, payment amount and other information, so that employees can query and manage their social security rights and interests.

To sum up, while enjoying the pre-tax deduction of social insurance premiums, enterprises also need to abide by relevant laws and regulations and the provisions of tax authorities to ensure that the payment of social insurance premiums is legal and compliant. Enterprises that falsely report social insurance premiums or pay social insurance premiums in violation of regulations may be investigated for corresponding legal responsibilities by tax authorities.

Legal basis:

Article 35 of the Regulations on the Implementation of Enterprise Income Tax in People's Republic of China (PRC)

The basic social insurance premiums and housing accumulation funds paid by enterprises for employees in accordance with the scope and standards stipulated by the relevant competent departments of the State Council or the provincial people's government are allowed to be deducted.

Supplementary endowment insurance premiums and supplementary medical insurance premiums paid by enterprises for investors or employees are allowed to be deducted within the scope and standards stipulated by the competent departments of finance and taxation of the State Council.