In this moment, SMEs should not reduce social security taxes and fees as a “straw†to save enterprises, but should regard profitability as their core competitiveness.
At 10:30 on the evening of September 20th, a sharing session on tax reform and social security compliance on a live broadcast platform was discussed. Although the sharing was one hour later than the scheduled end, everyone still did not end. meaning. More than 1,600 HRs from all over the country asked questions from social security experts. The problem was concentrated on “social security compliance ideas and strategiesâ€.
As the head of the human resources department of a garment factory in Foshan, Li Juan participated in three training courses on related topics in less than one month. "As far as I know, many SMEs that have not paid social security premiums in full according to the prescribed payment base are actively formulating social security plans to deal with them." Li Juan told the 21st Century Business Herald.
A report from CICC said that Li Juan’s textile and apparel sector was significantly affected by “social insurance tax rebates†and had a profit impact of more than 30%. The industries that are also affected are small and medium-sized enterprises such as building decoration, real estate, logistics, catering, light industry and other labor-intensive, small-scale, low-margin categories.
Under the reform of “social security tax reformâ€, is Guangdong SMEs affected? After interviewing some small and medium-sized enterprises such as catering and clothing in Guangdong, the reporters of the 21st Century Economic Report found that although the contribution rate of the basic endowment insurance units of enterprises in Guangdong Province is 13%-14%, this round of reform will still increase the labor cost of enterprises to a certain extent.
However, in the view of 51 social security founder and domestic senior social security expert Yu Qingquan, in the future, when the social security income level is generally stable, after expanding the collection and management base, the social security rate is expected to decrease, and it is highly likely that the social insurance premium will be lowered. The rate is synchronized with the real base.
Social security book of SMEs
For the former compliance companies, the “social security tax transfer†did not bring much change. Does the burden of SMEs in Guangdong increase?
Li Juan told the reporters of the 21st Century Business Herald that apart from administrative institutions, state-owned enterprises and large enterprises, most of the institutions, especially private small and medium-sized enterprises, are paid social security contributions of 60% of social wages or social wages. Cardinality.
Li Juan took the account of the basic old-age insurance that occupied the big head as an example. Beginning in July 2018, Foshan enterprises determined the payment base based on the average salary of the employees in the previous year. Among them, the upper limit of the payment base is determined according to 300% (20004 yuan/month) of the average monthly salary of 6686 yuan of employees in non-private units in Guangdong in 2017, and the lower limit is determined according to 3100 yuan.
According to the prescribed 2018 social insurance contributions of enterprise employees in Foshan City, the company pays 13% of pension insurance for employees and 8% for individuals. Li Juan’s employees who have a monthly income of 7,000 yuan on the company’s assembly line have previously paid a monthly pension premium of 403 yuan according to the minimum payment base, and the actual deposit base of employees is calculated according to the “social security tax reduction†reform. It became 7,000 yuan, and the company had to pay 910 yuan per month, which was 507 yuan more.
A "big four" accounting firm analyzed the 21st Century Business Herald reporters, "social insurance tax rebate" has a more prominent impact on labor-intensive SMEs. First, most SMEs fail to pay social security in full, and second, labor costs account for enterprises. The total cost is large.
Li Juan’s clothing factory confirmed this analysis. “In the garment processing industry, labor costs account for 40%-50% of the total cost. If we add the cost of social security compliance, we have 100 workers in a garment factory, only one monthly pension insurance. On the previous, it cost nearly 50,000 yuan more than before.†Li Juan said that the staff structure may be optimized next year. “If the enterprise order does not increase, one person must use two people.â€
But the same labor-intensive catering industry seems to indicate the other side of the SME situation.
After investigating the catering industry in Guangzhou, the 21st Century Business Herald found that the catering industry in Guangzhou was worried about the increase in labor costs brought about by the “social security tax reform†reform, and was more worried about rising raw materials prices and rising rents.
A restaurant group is a catering company with more than 800 employees, witnessing the 30-year development of the Guangzhou catering industry. Its chairman, Pan Long (pseudonym), told 21st Century Business Herald that its restaurant rents have increased by more than 200,000 yuan compared to last year. For example, he takes the pigeons and vegetables that consume a lot of wine in the restaurant. For example, the price of a pigeon has risen from 16 yuan to 21 yuan, and the price of the cabbage has also increased by about 60% in a year. Say.
For the cost pressure of raw materials and rents, the restaurant relies on part of raising the price of the food on the one hand, and on the other hand by reducing the cost. Before the “social security tax reform†reform, the catering industry mostly reduced costs by signing an “abandonment of social security†agreement with employees. But after the reform, "buy social security" must be compliant.
But the problem has followed. Most of the foreign employees and young employees tend to give up buying social security in exchange for the company's multiple incomes of several hundred yuan.
Early actuarial compliance costs
After the “social insurance tax transferâ€, these small and medium-sized enterprises began to actively formulate “response rulesâ€.
In the live broadcast class mentioned above, social security experts provided several compliance solutions to avoid a significant increase in corporate costs. The social security expert said that "the core is to reduce the accrued base."
For example, many companies have adopted lower social security and provident fund to reduce the payment base. The payment of the deficit of the provident fund is more common. After the “social insurance tax transferâ€, enterprises can deduct from the individual salary base to more employees. The method of paying (complementing) the provident fund and other means to lower the salary base and achieve the purpose of legally reducing the base of payment.
Another approach involves translating hiring into partnerships and converting wages into dividends within small and micro-enterprises, thus addressing the impact of corporate social security taxation.
“Actually, according to the traditional employment model, the company pays employees. Now the policy is how much social security is paid. How can a company register a small store or a partnership? Paying the service fee to the partnership, turning the employment relationship into a contractual and cooperative partnership. Small and micro enterprises can choose part of the income according to the salary distribution and part of the income according to the partnership dividend, according to the new tax law, the operating income tax rate It is from 5% to 35%.†The social security expert said in sharing that this is both legal and motivated by employees.
However, Lin Jiang, director of the Department of Fiscal and Taxation at Lingnan College of Sun Yat-Sen University, believes that the impact of “social insurance tax reduction†on enterprises should be seen from a long-term perspective. "The original social security collection and management system is unsustainable. Enterprises that have paid in compliance have suffered losses, resulting in some degree of bad money expelling good money. The 'social insurance tax transfer' is conducive to market fairness, and the reform direction is definitely Positive and correct," he said.
Yu Qingquan also believes that SMEs should not reduce social security taxes and fees as a “straw†to save enterprises. Instead, they should improve their profitability as their core competitiveness.
"Although lowering the social insurance premium rate, it can play a role in reducing the burden on the enterprise and stimulating the vitality of the market. However, the enterprise is the market subject of fierce competition. Instead of complaining rather than actively, the enterprise should preemptively calculate the compliance cost. The whole society worked together to gradually digest the pressure of compliance," Yu Qingquan said.
In Linjiang's view, "social security tax transfer" may need to give SMEs a certain buffer space to adapt, and he agrees with the phased implementation proposed by experts.
The "Confirmation of the overall increase in the burden of enterprises" proposed by the State Council executive meeting on September 18 gave the company a "reassuring". At the same time, the meeting also proposed that we should promptly study and propose a plan to reduce the social security rate, and implement it in parallel with the collection system reform.
Lin Jiang told the 21st Century Business Herald that in fact, Guangdong is doing a better job of reducing the cost of corporate social insurance. In the revised version of the “10 Entity Economy†announced recently, a series of reductions in social security rates, including “implementing the province’s unified corporate pension insurance unit contribution ratio, and the unit contribution rate is higher than 14%,†Initiative.
Yu Qingquan believes that in the future, when the level of social security income is generally stable, after expanding the collection and management base, the social security rate is expected to decrease, and it is highly likely that the social security rate will be lowered and the real base will be synchronized.
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