Since August, flexible employees and employees have paid social security fees. What is the reason?

In the second half of each year, both freelancers and employees need to pay social security fees, which is nothing to be afraid of. First of all, we must understand a truth. At present, the social security payment base of urban and rural residents in China is paid according to the average income of urban workers in the previous year. For example, the social security payment in 2022 is calculated with reference to the average income of urban and rural residents in 202 1.

Why pay a large social insurance premium? According to the requirements of social security law, self-employed and freelancers can choose an appropriate payment base between 60% and 300% of the average income of employees in full-caliber urban units, in which the average income of employees in full-caliber urban units should be weighted by the average income of employees in urban non-private units and the average salary of employees in urban private units in our province last year. This means that the average income of employed people has increased, the average income of all caliber has increased accordingly, and the deposit base of freelancers has also increased.

Since the average income of employees in full-caliber urban units in various provinces and cities is usually released after August in the second half of the year, and it is rising every year, so the estimate of 202 1 is also true. For example, in August 1 day, Shaanxi Province officially announced that the average income of full-caliber urban units in 202 1 year was 78,520 yuan. As we all know, before any release, freelancers can only temporarily pay social insurance premiums in 2020 until the new payment base is announced, and then pay a large amount of social insurance premiums from 1.

Why do employees of some enterprises also need to pay social security fees? It sounds puzzling, isn't the average monthly salary of employees in the previous year the standard? But in fact, some enterprises immediately define the social security payment base of employees according to 60% of the average income of employees in full-caliber urban units for the sake of labor costs, rather than determining the payment base according to the actual income of individuals. In addition, employees are vulnerable groups, and the payment base has not been confirmed, which also implies that enterprises have underpaid and missed the payment of pension insurance benefits, resulting in the damage of employee pension benefits.

Workers pay at the lowest level of 60%, which means that the average income of employees in full-caliber urban units increases and the social insurance premiums of employees increase. Enterprises will deduct a sum of money from the actual income of employees, and then the tax department will deduct social insurance premiums.

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