Social Insurance Periodical Deferral! What does a company need to know?
On 13th June 2022, the Shanghai Municipal Bureau of Human Resources and Social Security and five other departments issued the «Notice of the city’s expansion of the scope of implementation of the periodical deferred social insurance policy», to expand the scope and extend the period of implementation of the deferred payment policy.
I. Who can enjoy the deferred payment policy?
According to the relevant provisions of the state and the city, the following industries in Shanghai can enjoy the periodical deferral policy of social insurance.
Five special hardship industries: Catering, retail, tourism (referring to travel agencies and related services, tour scenic area management two categories), civil aviation, highway, waterway and railroad transportation.
Seventeen expansion industries belonging to the difficult enterprises: Agricultural and food processing industry, textile industry, textile, clothing and apparel industry, paper and paper products industry, printing and recording media reproduction industry, pharmaceutical manufacturing, chemical fiber manufacturing, rubber and plastic products industry, general equipment manufacturing, automobile manufacturing, railroad, ship, aerospace and other transportation equipment manufacturing, instrumentation manufacturing, social work, radio, television, film and sound recording production industry, culture and art industry, sports, entertainment.
Micro, small and medium-sized enterprises and individual entrepreneurs who are affected by the epidemic and have difficulties in production and operation, as well as those who are insured as a unit.
Social groups, foundations, social service agencies, law firms, accounting firms and other social organizations that participate in the basic pension insurance for enterprise employees refer to the implementation of small and medium-sized enterprises.
In addition to enterprises in the five special hardship industries, other employers applying for deferred payment should meet the conditions of being affected by the epidemic, having temporary difficulties in production and operation, being unable to produce and operate normally for one month or more in aggregate since April 2022 and incurring accumulated losses from January to May 2022.
II. What insurance is involved?
The deferred payment is limited to the company proportion of social insurance; for the individual proportion of social insurance, the employer should fulfill its obligation to withhold and pay on time and in full every month.
Eligible employers can apply for deferring payment of pension insurance, medical insurance (including maternity insurance), unemployment insurance and work injury insurance for the company proportion. The late fee is waived during the deferred payment period.
III. How long is the deferral period?
From July 2022 onwards, the application period for deferred payment will be from the 5th to the 26th of each month (the 5th of each month will be postponed on legal holidays and the 26th of each month will be advanced on legal holidays).
| Deferred payment policy — Implementation period | |||
| Insurance | Five specials | Seventeen expansions | MSME &
Individual Entrepreneurs |
| Pension | Apr to Dec 2022 | Jun to Dec 2022 | Jun to Dec 2022 |
| Medical | Apr to Dec 2022 | Jun to Dec 2022 | Jun to Dec 2022 |
| Unemployment | Apr 2022 to Mar 2023 | Jun 2022 to Mar 2023 | Jun to Dec 2022 |
| Work injury | Apr 2022 to Mar 2023 | Jun 2022 to Mar 2023 | Jun to Dec 2022 |
Employers who are audited and qualified will be included in the deferred payment from the month the application is accepted. During the deferment period, the employer can apply for different periods of deferment. If the application is not made in time, the month prior to the application will not be retroactive.
IV. How to apply for the deferred payment?
During the deferred payment period, the employer can apply for deferred payment to the social insurance bureau according to its own business condition, and can apply online through platforms such as “GOVERNMENT ONLINE-OFFLINE SHANGHAI”.
V. When should the deferred social insurance be paid?
The deferred social insurance should be paid within one month after the expiration of the deferment period at the latest. The employer may declare the payment of deferred social insurance in advance according to actual needs.
VI. Supervision and inspection
After an enterprise applies for deferring payment, the social insurance bureau will use big data comparison to review the eligibility of the enterprise for deferring payment without providing separate materials.
With that being said, the social insurance bureau will strengthen post-facto supervision and inspection.
For employers who make commitments but are found to be ineligible, relevant information will be passed to the taxation department promptly, and the taxation department will recover the suspended social insurance in a timely manner and add late payment fees as required from the date of suspension.
If you have such a need, please go through the above-mentioned website for the application.
If you have other questions, please feel free to contact us.
Reference:
- «Notice on the expansion of the scope of the city’s periodical deferred social insurance policy» Shanghai Municipal Bureau of Human Resources and Social Security Regulations [2022] No.19
http://rsj.sh.gov.cn/tshbx_17729/20220615/t0035_1407506.html
- Q&A on Expanding the Scope of the City’s Policy of Periodical Deferment of Social Insurance
http://rsj.sh.gov.cn/tzcjd_17352_17352/20220615/t0035_1407507.html
