1, labor dispatch

According to the Labor Contract Law of the People's Republic of China,

"The labor dispatch unit is the employing unit referred to in this Law, and shall fulfill the obligations of the employing unit to the laborers."

Therefore, the dispatched personnel are the "people" of the labor dispatch enterprise, not the people of the employer. In the vernacular, it means that the labor dispatch company spends the cost to support its employees and sends them to work, earning "human" money. In contrast, human resources outsourcing earns money from "working".

2. Outsourcing of human resources

Human resource outsourcing, referred to as HRO, refers to an enterprise outsourcing one or more human resource management tasks or functions to other enterprises or organizations for management according to needs, so as to reduce labor costs and maximize efficiency.

Human resource outsourcing is a kind of labor outsourcing, which is essentially different from labor dispatch.

Simply understand, the work that should be done by the customer's human resources department, such as recruiting employees, training employees, and distributing wages and social security accumulation funds, is outsourced to a third party, and the human resources outsourcing enterprise earns service fees, which belongs to brokerage agency services.

Second, the sales calculation method is different.

1, labor dispatch: after deducting the wages and benefits paid by the employer to the labor dispatch employees and handling social insurance and housing accumulation fund for them, it is taxable sales.

Note: social security accumulation fund is a labor dispatch company that registers and pays employees in the name of its own enterprise;

Labor dispatch is to deduct the above items from sales, which is the so-called "difference collection" policy.

2. Outsourcing of human resources: excluding the wages paid to the employees of the client unit on behalf of the client unit and the social insurance and housing accumulation fund paid by the agent.

Note: Social security accumulation fund refers to the social security accumulation fund registered by the contracting-out enterprise in its own name, but paid by the human resource outsourcing enterprise.

The above-mentioned items are not included in the sales of human resources outsourcing, that is, they do not constitute sales in themselves. Wages and social security accumulation fund are the burden of customers, and human resources outsourcing enterprises only pay them on their behalf, so they do not constitute sales. Therefore, there is no sales difference collection policy for human resource outsourcing.

Similar to the sales policy of financing sale and leaseback, the sales amount is "excluding" the principal, not "deducting" the principal.

Third, the tax policy of labor dispatch and human resource outsourcing

1, labor dispatch tax policy

Announcement No.47 stipulates that,

"Labor dispatch service refers to the service that a labor dispatch company dispatches employees to the employing unit, accepts the management of the employing unit and works for them in order to meet the needs of the employing unit for all kinds of flexible employment."

Taxpayers who provide labor dispatch services can choose to pay the difference tax. The total price and extra-price expenses obtained, after deducting the wages and benefits paid by the employer to the labor dispatch employees and handling social insurance and housing provident fund for them, are the sales, and the value-added tax is levied according to the simple tax calculation method.

For labor dispatch, VAT shall be levied according to the human resources service in Document No.36..

Note: The definition of human resources service in No.36 document, "Human resources service refers to the business activities that provide services such as public employment, labor dispatch, talent recruitment and labor outsourcing", in which labor outsourcing does not refer to the human resources outsourcing mentioned in No.47 announcement.

Summary of differential taxation:

General taxpayers choose the difference tax, 5% levy rate;

Small-scale differential tax, 5% levy rate;

Summary of non-differential taxation:

The general taxpayer pays in full at the applicable tax rate of 6%;

Small-scale taxpayers are charged in full at the rate of 3%.

2, human resources outsourcing tax policy

Announcement No.47 stipulates that,

"Taxpayers provide human resources outsourcing services and pay value-added tax according to brokerage services. Their sales do not include wages paid to employees of client units and social insurance and housing accumulation funds paid by agents. The wages collected from the entrusting party and paid on its behalf, the social insurance and housing accumulation fund paid by the agent shall not issue special invoices for value-added tax, but ordinary invoices may be issued.

General taxpayers who provide human resources outsourcing services can choose to apply the simple tax calculation method and pay VAT at the rate of 5%. “

Outsourcing of human resources belongs to the brokerage agency service of No.36 document.

Summary:

General taxpayers can choose the simple tax rate of 5%.

3% levy rate for simple taxation of small-scale taxpayers

Note that the sales amount does not include the wages paid to the employees of the client unit on behalf of the client unit and the social insurance and housing accumulation fund paid by the agent.

Fourth, summary

Theoretically speaking, labor dispatch enterprises are people who send "themselves". They work in the employing units and earn people's money. Human resource outsourcing enterprises undertake part of the work of customer units and earn "living" money. They have different concepts and apply different tax policies. The former serves according to human resources and the latter serves according to brokerage agency. The former can choose to tax the difference in sales, while the latter does not tax the difference in sales, because its sales itself does not include the wages and social security accumulation fund paid on behalf of it.