What is the impact of social security tax on enterprises?

Social security tax is a certain thing, and the relevant policies will be implemented from 20 19 1, so what impact does social security tax have on the company?

Social security tax increases the cost of enterprises

The reform of social security collection and payment system mainly affects social security payment from two aspects, one is to increase the proportion of social security payment, the other is to expand social security coverage. Increasing the proportion of contributions and expanding social security coverage will undoubtedly have an impact on corporate profits in the short term.

At present, the compliance rate of social security contributions of enterprises in China is low, and over 30% of enterprises pay social security fees according to the minimum payment base. This "social security tax reform" has a great impact on enterprises that have not paid social security fees. Most of these enterprises are private enterprises and small and medium-sized enterprises.

After social security is put under unified taxation, the expenditure of enterprises on social security will increase greatly.

Other effects of social security tax on enterprises

"Social security to tax" does not blindly bring a burden to enterprises. On the one hand, the tax department is responsible for the collection of social security, which is conducive to reducing the tax compliance cost of enterprises. On the other hand, the enterprise income tax will also be reduced.

Article 49 of the Measures for Pre-tax Deduction of Enterprise Income Tax stipulates that the basic old-age insurance premium, basic medical insurance premium and basic unemployment insurance premium paid by taxpayers to tax authorities, labor and social security departments or their designated institutions in accordance with state regulations, the employment security fund for the disabled in accordance with the standards confirmed by provincial tax authorities, and the statutory personal safety insurance premium paid for special types of workers in accordance with state regulations can be deducted.

As far as the affected industries are concerned, labor-intensive industries may be the most affected. Including hotels, logistics, catering, express delivery and traditional manufacturing in the service industry. In labor-intensive industries, labor costs account for a high proportion of the total cost of enterprises, usually reaching 40% or even higher. "Social security to tax" has little impact on such enterprises, so relative tax planning is very important.