Payment of personal income tax on behalf of the social security can not be taught

Companies prefer to pay social security to employees, but also not willing to pay personal income tax why?

Because the social security regulations must be paid by the enterprise, withholding the part of personal contributions, is the law, mandatory. At the same time, social security disputes (reporting) more. If you don't pay social security, the business loses 100% of the cases.

And personal tax enterprises have no legal responsibility. The tax law stipulates that: personal income tax is payable by the income earner, and the unit or individual who pays the income is the withholding agent. That is to say, personal tax can be withheld by the unit on behalf of the payment, but also can be declared by the individual to pay. It is not mandatory for the unit to withhold and pay on behalf of the taxpayer. Withholding is a requirement of the tax department, not a legal requirement. If there is a lawsuit, the responsibility is also the individual who has not paid the tax.

What is the relationship with the company's economy?

Social security companies have to pay a large part of the general contribution rate of 20% (not counting the housing fund), individuals only pay 8%. This is an increase in the cost of labor. Individual tax is paid by the individual, and the company has nothing to do with it. However, some companies in order to attract talent, the company to pay personal tax. This is not legal, you can count this part of the tax also into the personal income, which is tantamount to a disguised increase in wages, increasing the cost of employment.

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