Legal analysis: no tax is required. The social security fees paid by the unit cannot be included in the wages paid to employees. Social security fees paid by units are allowed to be deducted before enterprise income tax according to the standards stipulated by the state.

Legal basis: Provisional Regulations on the Collection and Payment of Social Insurance Fees.

Paragraph 2 of Article 14: Social insurance funds are divided into basic old-age insurance funds, basic medical insurance funds and unemployment insurance funds according to the overall scope of different types of insurance. All social insurance funds are simply accounted for.

Article 14, paragraph 3, social insurance funds shall not be taxed. The implication is very obvious, indicating that it is a principle that all social insurance funds are not taxed. This pension fund and medical insurance fund are just examples of accounting methods.