In 2019, it is necessary to complete the social insurance paperwork for safety.

What types of businesses are at high risk of being inspected or audited?

In 2019, the Vietnam Social Security (VSS) issued Official Letter No. 530/BHXH-BT regarding the review, exploitation, and control of the development of social insurance participants through data provided by the tax authorities. Simultaneously, it intensified the organization of surprise inspections of social insurance contributions in 2019.Tax authorities review social insurance participants.). INTherefore, many businesses have discrepancies between their figures from the Social Insurance agency and the Tax agency, leading to inspections, audits, and penalties from inter-agency bodies.

Currently, businesses must participate in mandatory social insurance for their employees, ensuring that the correct individuals and income sources are included in the calculation of social insurance contributions, in order to include salaries as expenses. (How can salaries be included in expenses?)

What is the current state of enforcement of social insurance laws?

To properly assess the risks faced by businesses regarding labor, wages, and social insurance, please refer to the following links:

Review Social Insurance participants using data from the tax authorities – Here: https://expertis.vn/co-quan-thue-ra-soat-nguoi-tham-gia-bhxh/

Urgently implement and complete the social insurance coverage target – Here: https://expertis.vn/hoan-thanh-chi-tieu-bao-phu-bhxh/

Article 216 of the Penal Code stipulates the "Crime of evading social insurance, health insurance, and unemployment insurance contributions for employees" – See here: https://expertis.vn/trach-nhiem-hinh-su-phap-nhan-thuong-mai/

You are a director but are unclear about the current implementation of social insurance laws?

How to properly prepare documents according to Labor Law, Wages, and Social Insurance regulations?

Business & Investment ABSOLUTELY DETERMINED All three sets of documents must be complete and prepared in accordance with the regulations of the Labor Law, Wages, and Social Insurance.

A complete set of documents for one employee includes:

• Labor records
• Payroll records
• Social insurance records

To ensure that all three sets of documents are available, the enterprise needs to comply with the regulations of the laws related to Labor, Wages, and Social Insurance, specifically as follows:

A. Payroll records, including:

Labor records

1. Employment contracts and related decisions for new employees arising during the month.
2. Vietnamese enterprises must submit labor declarations twice a year, and state-owned enterprises four times a year.
3. Compare the salary-related expenses with the initially registered and issued Labor Regulations. If any discrepancies arise, update the Labor Regulations and re-register them.
4. Compare the wage disbursements with the initially registered and issued Collective Bargaining Agreement. If any discrepancies arise, update the Collective Bargaining Agreement and re-register it.

Salary records

1. Compare the salary adjustments with the initially issued salary regulations; if any discrepancies arise, update the salary regulations accordingly.
2. Compare the salary payments with the registered and initially issued Salary Scale + Job Title Regulations. If any discrepancies arise, update the Salary Scale + Job Title Regulations and re-register.
3. Check the timesheet (if there is overtime).
4. Create a Public Salary Table for the company.
5. Register for individual and dependent tax identification numbers (if there are any unregistered employees).

B. Carrying out social insurance procedures:

1. Social Insurance Contribution Table
2. Compare and verify the notice regarding the social insurance contributions due.
3. Prepare records of increases, decreases, and adjustments.
4. Claiming insurance benefits: sickness, maternity, retirement, death benefits…
5. Please issue a social insurance book and a health insurance card.
6. Update union records (if applicable)
7. Monitoring the trade union fund at the enterprise.

Are you struggling with the sheer volume of labor records, payroll records, and social insurance records you have to process monthly, and the high costs involved? Contact us now for advice on solutions.