How to cancel social security entries

I. Entries for the provision of social insurance premiums by enterprises are as follows:

1. Social insurance premiums are included in management fees-social insurance premiums;

2. The specific accounting entries are as follows:

Borrow: management fee-social insurance fee (company part)

Other receivables-social insurance premium (personal part)

Loans: bank deposits

3. Social insurance premium refers to the money paid by employers and employees, which is the fee paid by employees and employers to social insurance management institutions in accordance with the prescribed amount and time limit in the process of raising social insurance funds. It is also the main source of social insurance funds. Social insurance premium is the social insurance treatment paid by social insurance specialized institutions to workers (or their family members) according to the payment of employers and workers and the provisions of social insurance laws and regulations.

Second, the collection method of social insurance premiums

1. proportional insurance system

This method is based on the wage income of the insured, and a certain proportion is stipulated to collect insurance premiums. Adopting the proportional system, the initial main purpose of social insurance is to compensate the income lost by the insured in risk accidents in order to maintain their minimum living. Therefore, we should refer to his usual income, on the one hand, as a standard to measure payment, on the other hand, as the basis for premium calculation.

The biggest drawback of the work-based proportional insurance system is that the burden of social insurance is directly related to wages. Whether employers and employees bear social insurance premiums or one of them bears social insurance premiums, the burden of social insurance is manifested in the increase of labor costs, which will lead to capital crowding out labor, which will lead to an increase in unemployment.

2. Equal insurance premium system

That is, regardless of the income of the insured or his employer, the insurance premium of the same amount should be charged. The advantages of this system are simple calculation and easy to be universally realized. Moreover, in countries that collect insurance premiums in this way, the payment system is generally divided equally, which has the significance of equal income and expenditure. But its defect is that low-income people and high-income people pay the same premium, which is obviously unfair in terms of affordability.

Because most types of social security need to be paid by both units and individuals, the accounting treatment of social security expenses in the company should be calculated according to the actual payment. If the relevant information is unclear, you can consult the staff of the social security department to avoid making mistakes.

Legal basis:

People's Republic of China (PRC) social insurance law

Article 3 The social insurance system adheres to the principles of wide coverage, basic protection, multi-level and sustainability, and the level of social insurance should be compatible with the level of economic and social development.

Article 4 Employers and individuals who pay social insurance premiums according to law in People's Republic of China (PRC) have the right to inquire about payment records and personal rights and interests records, and ask social insurance agencies to provide social insurance consultation and other related services.

Individuals enjoy social insurance benefits according to law and have the right to supervise the payment of their own units.

Fifth people's governments at or above the county level shall incorporate social insurance into the national economic and social development plan.

The state raises social insurance funds through multiple channels. People's governments at or above the county level shall give necessary financial support to social insurance.

The state supports social insurance through preferential tax policies.

Twenty-third employees should participate in the basic medical insurance for employees, and employers and employees should pay the basic medical insurance premiums in accordance with state regulations.

Individual industrial and commercial households without employees, part-time employees who have not participated in the basic medical insurance for employees and other flexible employees can participate in the basic medical insurance for employees, and individuals pay the basic medical insurance premium in accordance with state regulations.