Disadvantages: There are certain tax risks. It is not conducive to the effective control of the government's tax department. Once tax evasion occurs, it is difficult to detect it, and criminal suspects may be mixed in, which is not conducive to management.

1. Can companies pay wages in cash? First of all, the answer is yes. It is legal for enterprises to pay wages in cash. Article 4 of the "Interim Regulations on Wage Payment" stipulates that "wages shall be paid in legal currency." As the RMB is a legal currency, it is completely in compliance with the law for companies to pay wages in cash.

2. So what are the tax-related risks of paying wages in cash? Paying wages in the form of cash is easy for companies to operate, and employees are satisfied with receiving a bunch of cash. However, this method makes tax inspections very difficult. We are in the era of mobile Internet payment. Our country is vigorously promoting non-cash settlement and fully implementing the bank salary payment model. If the company is not in a remote area and has a basic account, but still has to use cash to pay wages, there will be certain tax risks. If an enterprise needs to use cash to pay wages, it should pay attention to the following issues to avoid tax risks:

1) The part of wages paid by the enterprise in cash should also be included in the base for calculating social security, because according to the labor law According to the requirements, enterprises must calculate social security based on the wages paid to employees.

2) The part of wages paid by the enterprise in the form of cash must be accounted for in accordance with regulations and included in the total wages of employees, and the personal income tax withheld shall be calculated based on the total wages of the individual employees.

3) In order for the wages paid by the enterprise in the form of cash to be deducted before corporate income tax, two conditions need to be met: ① The wages paid are within a reasonable range, ② It can provide employees with payment, such as Valid certificates such as salary signature slip, company documents on salary system, personal income tax withholding and payment certificate, etc.

Generally speaking, it is the company’s free choice to pay wages in cash, and it does not necessarily mean tax evasion. However, companies also need to pay attention to the issues mentioned above when choosing the form of cash payment, and pay attention to reasonable To avoid taxes, do not add unnecessary risks to the enterprise just for temporary convenience.

1. Wage payment refers to the specific method of payment of wages. This includes issues such as how to calculate and pay the remuneration that employees should receive after completing a certain amount of work during the system working hours, or how to pay wages under special circumstances. Mainly include: wage payment items, wage payment level, wage payment form, wage payment object, wage payment time and wage payment under special circumstances, etc.

2. Wage payment items generally include time wages, piece wages, bonuses, allowances and subsidies, wages for extended working hours and wages paid under special circumstances. However, the following labor income of workers does not fall within the scope of wages:

(1) Social insurance benefits paid by the unit to individual workers, such as funeral pensions, living allowances, family planning subsidies, etc.;

(2) Labor protection expenses, such as work clothes, antidotes, refreshing drinks paid by the employer to workers;

(3) Not included in wages according to regulations The total amount of various labor remuneration and other labor income, such as the Creation and Invention Award, National Spark Award, Natural Science Award, Science and Technology Progress Award, Reasonable Suggestion and Technology Improvement Award, China Skills Award, etc. issued in accordance with national regulations, as well as manuscript fees and lectures fees, translation fees, etc.

Time and requirements for wage payment: my country’s laws and regulations on wage payment clearly stipulate that wages should be paid to workers in monetary form on a monthly basis, and workers’ wages must not be withheld or delayed without reason. Employers shall pay wages to workers in accordance with the law during statutory holidays, wedding and funeral leave, and during the period when workers participate in social activities in accordance with the law. Wages should be paid monthly, which means wages are paid according to the date agreed between the employer and the employee. In case of holidays or rest days, payment should be made in advance on the working day. Wages are paid at least once a month. For those who implement the hourly wage system and weekly wage system, wages can also be paid on a daily or weekly basis. For workers who complete one-time temporary labor or a specific job, the employer shall pay wages to workers upon completion of their labor tasks in accordance with relevant agreements or contracts.