[Compliancy] Social security is handled by the taxes bureau now!

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In short

While taxes and social security have been unified since the 1st January 2020, payments were still done to two different bureaus.

 

Since the 21st of November in Tianjin, the company taxes bureau will be in charge of collecting social security payments as well as personal income taxes.


What does it mean? 

Non-compliant behavior (such as not paying social security contribution or under-paying them will be way easier for authorities to discover, inspect, and correct)


Are particularly at sake foreigners employed in a unit who used point system with salary or 4 times or 8 times the average Tianjin salary to get a work permit.

 

According to analyst Zhang Yinghua, an executive researcher at the World Social Security Research Center of the Chinese Academy of Social Sciences, compared to the social security department, the tax department has a stronger grasp of employee wage and data and has stronger collection, fine, measure and management capabilities. Therefore, after the taxation department collects social security fees uniformly, it will regulate the non-compliant social security payment behaviors of enterprises, solve the long-standing problem of false fee bases, and help move the social security fee base closer to the tax base of individual taxes.



What do do?

Units shall check with their account and human resource that your social security payments are in line with personal taxes and salaries and take appropriate measure in case of discrepancy.



Who is impacted?

Any legal unit that hires employees, Chinese, or foreigners.


[Help] Social security in Tianjin, 8 Questions and Answers
Foreigners legally working in Tianjin the complete guide


Are particularly vulnerable to scrutiny units that employ foreigners with salary intents (point system with salary, of 4 times, 8 times the city average salary)

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