Can individuals pay social security tax deduction

Is the social security paid by individuals tax deductible

Individuals who bear the part of social security are not required to pay personal income tax. According to the Ministry of Finance, State Administration of Taxation on the basic pension insurance premiums basic medical insurance premiums unemployment insurance premiums housing provident fund notice of personal income tax policy (Cai Shui [2006] No. 10), Article 1 "enterprises and institutions in accordance with the national or provincial (autonomous regions and municipalities directly under the Central Government) people's government prescribed the proportion of the contribution or method of payment of basic pension insurance premiums, basic medical insurance premiums and unemployment insurance premiums, exempted from personal income tax; personal income tax; social security contributions, social security contributions and unemployment insurance premiums, the individual can not be deducted from tax. Individuals are exempted from individual income tax; basic pension insurance premiums, basic medical insurance premiums and unemployment insurance premiums paid by individuals in accordance with the contribution ratios or methods stipulated by the people's governments of the state or provinces (autonomous regions and municipalities directly under the central government) are allowed to be deducted from their taxable income", so the social security premiums paid by individuals at social security centers can be deducted before calculating the individual income tax.

From the point of view of social security, as long as the employment relationship with the laborer, the employer has the legal obligation to pay the basic social insurance premiums for the laborer. If the employer does not pay the social insurance premiums for the worker, there is no pre-tax deduction for the income derived from the employment relationship. The employer's portion of the social security premiums is exempt from individual income tax. Similarly, if the worker pays the five insurance premiums in a non-compliant way, the social security premiums borne by the enterprise should be counted as part of his/her monthly salary income, and should be consolidated into his/her individual income tax.

Can you deduct your social security contributions before tax

There's no difference between personal social security contributions and those made by an organization, only the amount of contributions is different.

According to the employee's salary, the unit and the individual's share is generally:

1. Pension insurance unit to bear 20%, the individual to bear 8%;

2. Medical insurance unit to bear 8%, the individual 2%;

3. Unemployment insurance unit to bear 2%, the individual 1%;

4. Maternity insurance 0.7% by the unit to bear.

5. Workers' compensation insurance 0.5 to 1.6% is also borne by the unit.

Note: Employees are not liable for maternity and industrial injury insurance. The percentage varies from province to province and from city to city.

Above, we have introduced the individual social security contributions can be deducted from the tax. The personal part of the social security is not subject to personal income tax, and also gives an example,