Is there a connection between social security and individual tax? Is it okay not to pay in the same place?

A novice accountant asked, is there a connection between social security and individual tax? Is it feasible not to pay social security and individual tax in the same place? Let's take a look at it with Deep Space Network!

Is there a connection between social security and individual tax?

Social security is related to tax returns, and the base of social security contributions in various places is linked to the local average wage data. It is determined according to the average monthly wage income of employees from June 1 day to February 1 day in the previous year. Once a year, it will not change within one year after confirmation. The time to apply for adjusting the social security base is generally in July. Enterprises generally take the total wages of enterprise employees as the payment base, and individual employees take half of their average monthly salary in the previous year as the salary base for individuals to pay social insurance premiums. In China, the payment base is approved by the social insurance agency according to the employer's declaration.

Can social security and individual tax be paid in different places?

It is usually reported in the same company. If the income is obtained in multiple places, it can be paid separately. In order to avoid risks, some companies will entrust outsourcing companies to help them pay in different places.

The place where social security is paid is different from the place where personal income tax is paid. Does it affect the pre-tax deduction of social security?

According to the document (Caishui [2006] 10), the basic old-age insurance premium, basic medical insurance premium and unemployment insurance premium actually paid by enterprises and institutions according to the payment ratio or method stipulated by the people's government of the country or province (autonomous region or municipality directly under the Central Government) are exempt from personal income tax; The basic old-age insurance premium, basic medical insurance premium and unemployment insurance premium actually paid by individuals according to the payment ratio or method stipulated by the state or the people's government of provinces (autonomous regions and municipalities directly under the Central Government) are allowed to be deducted from the taxable income of individuals. The place of social security payment is different from the place of personal income tax payment, which should not affect the pre-tax deduction of social security.