Recently, the Vietnam Social Security announced that it will conduct automated social insurance inspections via the TST software. Accordingly, the software will automatically send businesses a decision to conduct a surprise inspection if they are in arrears with social insurance payments. over 03 months.
The current situation of insurance debt among businesses.
According to statistics from the Vietnam Social Insurance, as of March 31st, the total amount of outstanding social insurance debt subject to interest calculation has reached 6.654 billion VND. Despite this, the amount of outstanding social insurance debt is increasing and occurring in all provinces and cities nationwide.
A representative from Vietnam Social Security said there is 04 reasons why businesses are in arrears with social insurance contributions. as follows:
firstThe production situation of the units is facing difficulties.
MondayIn some areas, there is a lack of awareness regarding compliance with regulations on paying social insurance, health insurance, and unemployment insurance for employees.
TuesdayHowever, the number of businesses that have gone bankrupt, dissolved, disappeared, or whose owners have absconded remains high.
WednesdayHowever, the practice of evading, avoiding, and misappropriating workers' contributions for other purposes remains quite common.
The Vietnam Social Insurance agency emphasizes: "Debts in social insurance, health insurance, and unemployment insurance are not just a number; they are linked to the rights of workers." The practice of businesses defaulting on payments in the early months of the year and then paying them in the later months means that the rights of many workers are not consistently and continuously protected.
Remedies
The Vietnam Social Security has recently issued document No. 341/BHXH-BT to the Social Security branches in provinces and centrally-administered cities regarding the exploitation and use of the function for conducting surprise inspections of social insurance and health insurance contributions on the TST software (automated social insurance inspection).
To curb debt growth and aim for lower debt levels than in 2018, in addition to conventional solutions, the Vietnam Social Security has implemented several measures since the beginning of the year. These include requiring specialized officers to regularly monitor businesses, issuing written notices if payments are late, and reporting any overdue payments after two notices to initiate an inspection and penalty process. A highlight of this solution is the automated Social Security inspection conducted through the nationwide data software – TST.
This software will alert businesses that are more than three months overdue and suggest the formation of an inspection team. Vietnam Social Security also continues to publicly disclose the identities of businesses with long-standing debts through the media. This measure has proven effective with profitable businesses that deliberately delay payments. Vietnam Social Security is currently coordinating with the Ministry of Labor, Invalids and Social Affairs to issue this regulation.
The Vietnam Social Security also provides guidance on several aspects of utilizing the automated function for conducting surprise inspections of social insurance and health insurance contributions for authorized inspection units as follows:
- The Vietnam Social Security, the Collection and Monitoring Department, will conduct monthly inspections of specialized inspections of social insurance and health insurance contributions based on unscheduled audits provided by the TST software; compile, propose, and report to the Director General; and, either directly or in coordination with the Inspection and Auditing Department, conduct unscheduled inspections of units that have not yet undergone specialized inspections of social insurance and health insurance contributions based on unscheduled audits provided by the TST software. Before conducting unscheduled inspections, the Director of the Provincial Social Security Office will directly report and explain the situation to the Vietnam Social Security.
- The provincial Social Insurance agency, the Exploitation and Debt Collection Department, will review and compare the units subject to unscheduled inspections of Social Insurance and Health Insurance contributions, as provided by the TST software, with the inspection plan in the area; and submit the results to the Director of the provincial Social Insurance agency for approval and issuance of decisions on unscheduled specialized inspections of Social Insurance and Health Insurance contributions.
Documents to prepare for an inspection.
The Revenue Management Department provides documents and records related to the inspected units at the request of the relevant departments; coordinates the organization of unscheduled specialized inspections of social insurance and health insurance contributions; and urges and monitors the implementation of conclusions, recommendations, and decisions on handling matters after inspections as prescribed.
Provincial social insurance agencies prepare documents, records, and data related to units subject to unscheduled specialized inspections of social insurance and health insurance contributions, such as: Documents submitted by units and employees to the social insurance agency (Forms D02-TS, D01-TS, TK3-TS, TK1-TS and accompanying documents if any; C12-TS, D02a-TS, D04a,b,e,h-TS, D09a-TS, D10a-TS… issued according to Decision No. 595/QD-BHXH); data on the list of social insurance and health insurance contributions extracted from the TST software of the social insurance agency, data from the Tax agency or competent authority providing data to the social insurance agency…
