Do I have to pay the personal part of social security reduction?

Do I have to pay the personal part of social security reduction?

The object of social security relief is all kinds of enterprises, not individuals. Whether personal social security and provident fund will drop depends on whether there are any new policies announced next.

What measures are there to reduce the social security fees of enterprises?

Ministry of Human Resources and Social Security, together with the Ministry of Finance and State Taxation Administration of The People's Republic of China, studied and formulated the Notice on Phased Reduction and Exemption of Enterprise Social Insurance Premium, which defined three measures of exemption, reduction and deferment.

Exemption-that is, from February 2020, all provinces can exempt small and medium-sized enterprises from the payment of three social insurances: pension, unemployment and work-related injury insurance for a period of no more than five months. Hubei province can extend the scope of exemption to all kinds of insured enterprises.

Reduction or exemption-that is, other provinces in the country except Hubei can collect the contributions of three social security units of large enterprises and other insured units by half, and the reduction or exemption period shall not exceed three months. Because government agencies and institutions are not involved in business issues and are less affected by the epidemic, they are not within the scope of this relief policy.

Deferred payment-that is, enterprises that are affected by the epidemic and have serious difficulties in production and operation may apply for deferred payment. The deferred payment period shall not exceed 6 months in principle, and the late payment fee shall be exempted during the deferred payment period.

Accounting treatment of social security reduction and exemption

According to the application guide of "Accounting Standards for Business EnterprisesNo. 16-Government Subsidies": "Government subsidies show that the government transfers assets to enterprises, usually monetary assets or non-monetary assets. Government subsidies mainly take the following forms:

(1) financial allocation ......

(2) Financial discount ......

(3) Tax refund. Tax refund refers to the tax returned by the government to enterprises in accordance with the relevant provisions of the state, and is a kind of government subsidy given in the form of tax incentives. VAT export tax rebate is not a government subsidy.

In addition to tax refund, tax incentives include direct tax reduction, tax exemption, increased tax deduction and partial tax credit. Such tax incentives do not directly provide assets to enterprises free of charge, and are not regarded as government subsidies regulated by this Code.

(4) Allocating non-monetary assets without compensation ..... "

The reduction of social security during the epidemic also belongs to the situation that assets are not directly provided to enterprises for free, so it should not be regarded as the scope of government subsidy standards. Therefore, it is suggested to directly rule out the reduction of social security in accounting.

After reading the introduction of the personal part of social security relief, financial personnel can clearly know that when making payroll for employees, they should also be able to help employees withhold and pay social security and provident fund. Because the personal part has not been reduced, and it needs to be paid by individuals, it may be short without paying social security.