For enterprises, this impact is the most direct.
Needless to say, before "social security is included in the tax", many companies, especially private economies, small and medium-sized entities, service companies, etc., will pay social security to their employees according to the social minimum wage. It is illegal and is a gray area to reduce corporate costs.
According to statistics from the "China Enterprise Social Security White Paper 2017" released by "51 Social Security", the largest third-party social security agency in China, only 24.1% of companies in China have fully compliant social security payment bases.
After the "social security tax" is included in the tax, this gray area is eliminated. Enterprises must pay social security according to the actual salary of employees, otherwise it will be immediately reflected in the data of the tax department and will be subject to tax inspection Department investigation and punishment.
This means that for nearly 75.9% of Chinese companies—mainly private economies, small and medium-sized entities, and service industries—labor costs will skyrocket in an instant.
According to Wang Dehua, a researcher at the Academy of Financial Strategy of the Academy of Social Sciences, if "social security is included in the tax", the labor costs of these companies will increase by at least 30%! Spoon Classroom has currently launched a special tax reform course , bringing you authoritative interpretations and countermeasures.
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