The Impact Of Social Insurance Premium Collection Mechanism Reform On The Burden Of Small And Micro Enterprises

The report of the 20 th National Congress of the Communist Party of China proposes to improve the social security system,improve a multi-level social security system that covers the entire population,coordinates urban and rural areas,is fair,unified,safe,standardized,and sustainable,and expand the coverage of social insurance.Article 46 of the "Plan for Deepening the Reform of the Party and State Institutions" issued by the Central Committee of the Communist Party of China in March 2018 clearly states that "from January 1,2019,various social insurance premiums such as basic old-age insurance premiums,basic medical insurance premiums,unemployment insurance premiums,etc.will be uniformly collected by the tax department".Currently,most provinces in China have realized the transfer of responsibility for the collection and payment of social insurance premiums.However,for enterprises,this major reform will increase their employment costs and increase the burden on them.The implementation of this measure will indeed have an impact on enterprises,as the social insurance premiums collected by the tax bureau may lead to an increase in their employment costs,but it does have some positive effects.Firstly,this helps to strengthen the management and supervision of the collection of social insurance premiums,thereby solving the problem of some payment behaviors that are difficult to manage and supervise under the "dual" collection mode.Secondly,this is conducive to promoting corporate compliance,reducing the occurrence of corporate violations,protecting the legal rights and interests of employees,and providing better protection for the social security rights and interests of employees.Finally,the income of social insurance funds can also be better protected and managed,improving the sustainability and fairness of the social security system.Small,medium-sized,and micro enterprises with unique advantages of "small and beautiful",highly overlapping with the private economy,are important targets for market players,important forces for employment protection,and strong support for building a new development pattern.Due to the preference of small and micro enterprises for labor intensive industries with high labor costs,weak management,and insufficient development of innovation motivation,the reform of the social security payment mechanism will have a greater impact on small and micro enterprises.Therefore,it is necessary to analyze and explore the actual burden of social security expenses of small and micro enterprises.Based on combing the national negative reduction data from a macro perspective,this article further investigates three sample enterprises in Nanchang City,studies the social insurance burden before and after compliance payment,and proposes suggestions for reducing the social insurance burden of small and micro enterprises.The core content of this article includes four parts: The first part introduces the social insurance premium model in China,and analyzes and studies the advantages and disadvantages of the three models: tax authority collection,social insurance agency collection,and mixed collection;The second part mainly combines a large number of theoretical documents to elaborate on the development process of China’s social insurance premium collection and payment model.Then,by querying the social insurance premium collection and payment regulations issued by various provinces and cities,human resources and social security official websites,and other online materials,we collect and sort out the actual collection and payment model situation in various regions,in order to sort out the current situation of social insurance premium collection and payment model reform in various regions;In the third part,through investigation and specific analysis,it is found that the sample enterprises have increased their labor costs and social security burden due to the compliance payment of social security fees,and the reasons are analyzed;The fourth part proposes reasonable suggestions from the perspectives of the state,government,and small and micro enterprises themselves,such as accelerating the improvement of the social security system for small and micro enterprises,formulating economic development plans that conform to local realities,and conducting industrial structure adjustments,in the hope of helping enterprises avoid risks,improve quality,and increase income.