The Research On The Reform Of Social Security Fund Collection System

Social security is an inevitable product of human society and economic development, which takes responsibilities for social stability and accelerating the economic development. Since the establishment of the People’s Republic of China, the system of social security has been developing, strengthening, and perfecting. In the year of 2012, China’s National Audit Office published The Results of National Social Security Fund Audit(No.141)(No.34 Announcement for short) which said that by the year of 2011, under the social security system in China, the number of insured person had been exceeded 13 billion Yuan, and the total revenue of 18 items’ social security funds had reached 28402.05 billion Yuan; expenditures had reached 21100.17 billion Yuan; the accumulative end-year surplus had been 3118.59 billion Yuan. Compared with past five years, all the amount of increase had increased over 200%. Faced with the great progress in the system of social security, all the people in the country felt cheerful and inspiring. However, behind the great success, the No.34 Announcement pointed out several problems existing in the levy system on social security charges. For one thing, there were irregularities in the management of insurance charges in local units. For another, the institutions did not operate functions strictly which led to some universal problems such as abusing the social security charges, less levy, and inefficiency of government policies. For another, the institutions did not operate functions strictly which led to some universal problems such as abusing the social security charges,less levy, and inefficiency of government policies. In order to continually develop and perfect the system of social security, the research of the levy system on social security charges plays an important role. This levy system which determines the construction of social security funds is lifeblood of system of social security in China.The levy system of social security is lack of unity in China. According to the sixth item in the Interim Regulations on Social Security(Regulations for short below) published in 1999, the authorities of levy on social security should be appointed by people’s governments of province, autonomous regions, and direct-controlled municipalities. What’s more, the social security fees should be charged by land tax departments as well as administration departments of labor security that obey the regulations made by the social security institutions established by the State Council. Regulations did not unify the levy subjects of social security,and each provinces and municipalities started to establish levy system that is suitable for their own conditions according to the items of Regulations. However, this condition led to the co-existence of independent levy of social security department and levy collected by the revenue or full responsibility. Social Security Law published in 2010 still could not solve the problem.The mode applied by Jiangxi province now is independent levy of social security department, however, with the development of economy, the provinces around Jiangxi province has been applied the mode of levy collected by revenue, showing fully the professional advantages of local tax department on fiscal taxes. Therefore, the social security career is obviously developed. Unfortunately, social security career for which social security department take full responsibility in Jiangxi was backward the neighboring five provinces and the developmental level of whole nation.This paper analyzes the problems existing in the levy system of social security charges and proposes solutions to solve these problems according to the statistics attained by survey and the examples of neighboring provinces. This paper can be divided into six parts. The first part is introduction where the author introduce the background and thought of this paper. The second part tells the theory applied to support the paper. The third part is a brief introduction from which the readers can learn the contemporary conditions of levy on social security charges, and the disadvantages of levy mode of social security. The fourth part focus on the feasibility and significance of reform of levy system on social security charges in Jiangxi province. In addition, this paper analyzes reasons why the levy system needs reform and whether this reform can be realized or not. In the fifth part, the author designs a framework of levy system reform on social security charges and proposes measures of reform, which provides the specific discussions and designs for the reform. In the sixth part, the author make a conclusion and an expectation for the reform of levy system on social security charges.This paper analyzes the problems occurring in the levy system on social security charges in Jiangxi province and put forward the design of system reform---- “ collected by revenue, issued by social security, supervised by fiscal audit” in terms of practical surveys and researches and experience in China. The system of social security plays an critical role in the daily life of all the residents in Jiangxi and the labor workers without Jiangxi registered permanent residence. Thus, only when the system of social security continually develop and perfect, will people enjoy more social welfare.