The declaration and payment of social security fees has always been a cumbersome and troublesome necessary procedure for many enterprises and individuals in China. However, the situation is about to change dramatically.
Starting from 2024, many provinces across the country, including Beijing, Hebei, Jilin, etc., will start the optimization and adjustment of the social insurance declaration and payment process, opening the door to the convenience of one-stop declaration and payment to the tax department.
This reform will greatly reduce the burden on payers, provide more efficient and lower-cost services, and will have a profound impact on the lives of each of us.
So, what exactly has changed in this reform? And how will it affect us? Let's find out.
Reform of social security collection and management responsibilities.
To understand this reform, it is first necessary to review the historical changes in the responsibility for the collection of social security contributions. Since 2020, the responsibility for the collection of social insurance premiums has undergone significant changes. Many localities across the country have actively implemented the new policy of integrated collection of social insurance premiums by tax authorities.
At that time, the reform was carried out in the following steps: the social insurance and health insurance institutions first determined the amount of social security contributions to be paid, and then passed on the information to the tax authorities for collection. This move clearly paves the way for the payment of social security contributions and improves the process.
However, this is just the beginning. In 2023, another high-profile reform will further merge the declaration and payment of social security premiums into one, and hand them over to the tax authorities for processing.
Although the social security department still has responsibilities such as insurance registration, personnel increase and decrease, and treatment approval in all operational processes, the convenience and efficiency of the entire process have been significantly improved.
In 2024, the social security premium payment process will be adjusted in many places.
With the arrival of the new policy, 2024 will usher in unprecedented changes to the social security premium declaration process. A number of provinces have begun to implement new procedures for the declaration and payment of social security contributions.
Starting from January 1, 2024, payers in Beijing will no longer need to travel back and forth between the three departments of social security, medical security and taxation, and only need to report and pay fees directly to the tax authorities.
Similarly, Hebei Province will adopt the same new payment process from 1 January 2024.
In Liaoning, the reforms, which began on 1 January 2024, will reform and enhance the payment procedures for employers, with the tax authorities reporting and paying fees directly.
Further afield in Xinjiang, from January 1, 2024, even contributors (such as employers and flexible workers) will no longer need to report their wages to the human resources and social security and medical security departments first, and then pay the tax authorities according to the amount determined by the two authorities.
Process reform under the national trend.
It is important to note that this reform will not begin in 2024 across the country. In fact, as early as 2023, several regions have begun to declare social insurance premiums to the tax authorities.
The Implementation Measures for the Tax Collection of Social Insurance Premiums in Guangdong Province, which came into effect on 1 November 2023, further stipulates that "the tax authorities shall be responsible for the expansion of social insurance coverage".
From December 1, 2023, Shanghai will allow contributors to declare social insurance premiums directly to the tax authorities. Also starting to adjust on December 1, 2023 also includes Fujian, Shanxi, Anhui, Hainan and other places.
Prior to this, Zhejiang, Chongqing, Jiangxi, Yunnan and other places have begun to implement the procedure of telegraphing social insurance premiums to the tax department on July 1, 2023.
This national trend will better solve the problem of errands for social security participants, so that they can complete all social security declaration and payment procedures at home.
Warning: Risks and countermeasures of reform.
While the process has become more convenient, there are also potential risks buried in the new policy. One of the main problems is that if the number of employees and the salary base data of social security, individual income tax and enterprise income tax declarations are inconsistent, it is easy to cause tax problems.
As the main contributor, employers need to pay special attention to and comply with these rules to avoid unnecessary trouble.
Write at the end. Overall, the new social security reporting model brings convenience, but at the same time, it also requires us to understand and comply with the relevant rules. Both employers and individuals should be prepared to respond to these changes and ensure that their actions are in line with the law to avoid possible risks.
Are you ready for the new social security payment process reform that is about to be in full swing? In this change, we will enjoy more convenient social security services, but at the same time, we must be alert to potential risks to ensure that our rights and interests are not compromised. Let's join hands to welcome the new era of social security payment!