On March 3, the General Office of the Jilin Provincial People’s Government printed and issued a notice (No.12, 2020) on the opinions of the Jilin Provincial Human Resources and Social Security Department, Finance Department and Taxation Bureau on temporarily cutting corporate contributions to social insurances premiums. The frequent questions and answers on the temporary reduction and exemption policy are collected as follows:
·What is the main content of the temporary reduction and exemption policy of corporate social insurance premiums in Jilin province?
The main content of the temporary reduction and exemption policy of corporate social insurance premiums includes that all types of micro, small and medium-sized businesses and self-employed businesses insured by units will be exempted from the basic pension, unemployment and workplace safety insurance premiums (hereinafter referred to as the three types of social insurance premiums). All types of large businesses, private non-enterprise organizations and social groups will be exempted from contributing half of the three types of social insurance premiums.
·What is the effective time of the temporary reduction and exemption policy of corporate social insurance premiums?
Micro, small and medium-sized businesses will be exempted from the three types of social insurance premiums from February to June 2020. Large businesses will be exempted from contributing half of the three types of social insurance premiums from February to April 2020.
·How do social insurance authorities refund the three types of social insurance premiums paid amid the novel coronavirus outbreak?
——The micro, small, medium-sized businesses that paid the social insurance premiums amid the novel coronavirus outbreak have the priority to ask for a direct refund. The large businesses can choose to either offset the premiums in the following months or ask for a refund.
——Social insurance authorities at all levels shall make a call confirming the corporate refund intention with no needs of applications or relevant materials submission.
——Social insurance authorities at all levels shall refund the funds as soon as performing the approval procedure of refund.
·What insured businesses are eligible for the temporary deferral of the three types of social insurance premiums?
The insured businesses (including public institutions with the basic pension insurance) undergoing severe difficulties due to the epidemic, which have suffered an accumulated loss for more than three consecutive months and been unable to pay the minimum wage to their employees or unable to normally operate with the only way to pay the employees living allowances, can apply for deferring their payments to the three types of social insurances.
·What is the effective time of the temporary deferment policy of the three types of social insurance premiums?
Businesses can apply for the deferral of the three types of social insurance premiums for as long as six months, which shall be between February and December 2020.
·How to apply for the deferral of the three types of social insurance premiums?
——Application submission. Eligible businesses can apply for the deferral payments of three types of social insurances according to relevant provisions. Login to the website of Jilin Provincial Social Insurance Affairs Administration (http://jlsi.jl.gov.cn/ssb/index.jhtml) to fill in the application form for deferring payments to social insurances, and submit a description of difficulties in production & operation and the financial statements, salary and living allowance payment details since February 2020.
——Approval pending. The insured businesses shall first submit the relevant materials of deferral payments to the local social insurance authority. The authority shall report the materials to its superior for approval and then inform the businesses of the approval result.
——Deferral processing. The local social insurance authority is to sign an agreement with the insured businesses on deferral payments of social insurances (download and sign via the website of Jilin Provincial Social Insurance Affairs Administration), and then process their deferral applications. The insured businesses are allowed to make up the shortfalls of the social insurances by the end of December 2020, without being charged overdue fine.
·What is the main content of the refund policy of unemployment insurance?
——Refund policy to general businesses. Refund employment insurance funds to the insured businesses which meet all the three requirements——whose production and operative activities conform to the industrial structure adjustment and environmental protection policies of the state and the local region, have paid unemployment insurance payment for more than 12 months in full and have not laid off employees or minimize the layoffs, to the micro, small, medium-sized businesses with a layoff rate of no more than 5.5% amid epidemic outbreak, and to the insured businesses with less than 30 employees (including 30 employees) and a layoff rate of no more than 20%.
——Refund policy to the businesses undergoing severe difficulties and excepting to recover. The refund policy of unemployment insurance is applicable to the businesses which meet all the three requirements with difficulties in operation between 2019-2020 and with expectation to recover, with no laid-off employees or few layoffs，and out of the lists of capacity reduction, "zombies" and dishonesty. Focus on supporting the leading enterprises which are greatly affected by the epidemic, but actively resume work and create more jobs, and give priority to supporting enterprises which supply materials such as medical supplies, public utilities and people's daily necessities.
·What is the effective time and standard of unemployment insurance refund policy?
The effective time of the refund policy ends up in December 2020. The standard of refund policy to general businesses is to refund 50% of the total unemployment insurance premiums paid in the previous year. The standard of refund policy to the businesses undergoing severe difficulties and excepting to recover is to be determined according to the local monthly per capita unemployment insurance premiums and the number of insured employees in six months.
·What is the main content of the extended temporary policy of reducing premiums for unemployment insurance?
The temporary policy of reducing premiums for unemployment insurance——the sum of the proportion of unemployment insurance premium paid by employers and employees is 1% (including 0.7% of employers and 0.3% of employees) is to be extended to April 30, 2021.
·Can individual employee pay insurances normally during the period of reduction and exemption of corporate social insurance premiums?
The temporary reduction and exemption policy of social insurance premiums is applicable to employers, not employees. During the period of reduction or exemption, the insured businesses should perform the obligation of withholding and paying the individual payment for employees according to the law, and the employees shall pay monthly. Individual employee with special difficulties to pay insurances on time can apply for deferral payments of social insurances by providing relevant explanatory materials and a letter of commitment via their companies.
·How to handle the relevant social insurances for employees during the period of deferral payment of social insurance premiums?
During the period of deferral payments of social insurances, if employees have to draw their basic pension, transfer pension accounts, claim for unemployment insurance, close social insurance accounts and handle other matters involved in account settlement, their insured companies should handle the payment procedures for the them separately to ensure their rights and interests.