When cases requiring the reporting of increases or decreases in social insurance arise, many businesses are still confused due to not being fully aware of the reporting deadlines as well as the consequences of failing to report within the stipulated timeframes.
Article table of contents
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1. Reporting Social Insurance Increase
According to Article 99 of the 2014 Law on Social Insurance, within 30 days from the date of signing a labor contract, employment contract, or recruitment, the employer must submit the application for registration and issuance of the initial social insurance book to the social insurance agency.
In cases where an employee's social insurance contribution increases, within 30 days from the date of increase, the employer must report the increase to the social insurance agency.
Penalties for Late Reporting of Social Insurance Increase:
According to Clause 3, Article 122 of the 2014 Law on Social Insurance, if the employer delays social insurance contributions for 30 days or more, they must:
- Pay the full amount of unpaid, delayed contributions;- Be subject to penalties as prescribed by law;- Pay interest amounting to 2 times the average investment interest rate of the social insurance fund of the preceding year on the unpaid, delayed contributions.
If this is not done, upon the request of an authorized person, banks, other credit institutions, or the state treasury are responsible for deducting money from the deposit account of the employer to pay the unpaid, delayed contributions and the interest on these amounts into the account of the social insurance agency.
Additionally, according to Point a, Clause 4, Article 38 of Decree 28/2020/ND-CP which took effect from April 15, 2020, a fine from 24% to 30% of the total mandatory social insurance, unemployment insurance amount at the time of making the administrative violation record but not exceeding 150,000,000 VND will be imposed on employers who delay mandatory social insurance and unemployment insurance contributions. (This content was also previously stipulated in Decree 95/2013/ND-CP).
2. Reporting Social Insurance Decrease
Clause 2, Article 50 of Decision 595/QD-BHXH of 2017 on the Procedures for Collection of Social Insurance, Health Insurance, Unemployment Insurance, Occupational Accident Insurance, and Occupational Disease Insurance; issuance of social insurance books and health insurance cards stipulates the responsibilities of agencies, units, enterprises, organizations, and individuals using employees who are subject to mandatory social insurance participation as follows:
a) Prepare and submit the application; deduct and pay social insurance, health insurance, unemployment insurance, occupational accident insurance, and occupational disease insurance premiums in accordance with the procedures and regulations of this Document and the law on social insurance, health insurance, unemployment insurance, occupational accident insurance, and occupational disease insurance. If the unit makes a late decrease report, the unit must pay the health insurance premiums for the months of the late decrease report and the health insurance card is valid until the end of those months.
Additionally, according to Article 10 of the Official Dispatch 1734/BHXH-QLT guiding the collection of social insurance, health insurance, unemployment insurance, occupational accident insurance, and occupational disease insurance; management of social insurance books and health insurance cards, when an employee resigns, meaning a decrease in the number of employees, the enterprise must prepare a report on the decrease in social insurance for the following month starting from the 28th of the previous month. After reporting the decrease, no retrospective reports are allowed. Enterprises can also report the decrease from the 1st of the following month, but in this case, the enterprise must pay the health insurance premiums for the following month.
Currently, there are no stipulated penalties for late decrease reporting, but the enterprise must pay the health insurance premiums for the employees in the months of late decrease reporting.
Hai Thanh
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