How to deal with the social security fee that has been refunded?

How to deal with the social security fee that has been refunded?

Article 1 of the Guiding Opinions of the State Medical Insurance Bureau, the Ministry of Finance and State Taxation Administration of The People's Republic of China on Decreasing the Expenses of Employees' Basic Medical Insurance by Stages (No.6 [2020] of Medical Insurance) stipulates that since February 2020, all provinces, autonomous regions, municipalities directly under the Central Government and Xinjiang Production and Construction Corps (hereinafter referred to as the provinces) may, according to the needs of fund operation and actual work, guide the overall planning areas to halve the contributions of employees' medical insurance units on the premise of ensuring the long-term balance of fund revenue and expenditure.

Article 7 of the Accounting Standards for Business Enterprises No.9-Remuneration of Employees stipulates that the social insurance premiums and housing accumulation fund paid by enterprises for employees, such as medical insurance premiums, work-related injury insurance premiums and maternity insurance premiums, as well as the labor union funds and employee education funds withdrawn according to regulations, shall be calculated and determined in accordance with the prescribed accrual basis and accrual ratio during the accounting period when employees provide services, and the corresponding liabilities shall be confirmed and included in the current profits and losses or related asset costs.

After receiving the refund paid by the social insurance premium unit, it should be combined with the previous accounting treatment to offset the current profit and loss or related asset costs accordingly.

How to deal with the accounts of social insurance premiums?

Social insurance premium refers to the fees 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 the main source of social insurance fund, and it can also be regarded as the fee charged by the insurer (country) of social insurance to the insured (employees and employers) for assuming the legal social insurance responsibility.

Social security expenses are calculated according to the wages payable to employees-social security expenses, which consists of two parts, one is the burden of enterprises and the other is the burden of individuals.

Under normal circumstances, the burden of enterprises is accrued like wages, debited to the cost account and credited to the employee's salary payable-social security account. Personal burden is deducted from personal salary, and transferred from employee's salary payable-salary account to employee's salary payable-social security account.

If it is determined that the social security fee paid by the resigned employee shall be borne by the employee himself, it shall be deducted from the employee's salary payable and transferred to the social security account payable when his salary has not been paid. When the salary has been paid and the employee needs to pay the expenses again, it should be transferred to other accounts receivable, and the money paid by the resigned employee should be recovered and credited to other accounts receivable.

What should I do if I receive the refunded social security fee? Many students will encounter the treatment of refund in accounting work. According to the relevant information explained above, the company received the social security fee returned by the Social Security Bureau, mainly to reduce the corresponding expenses or related costs. There is still a lot of relevant accounting knowledge to learn here. Welcome to try it here.