The policy of all provinces, autonomous regions, municipalities directly under the Central Government and the Xinjiang Production and Construction Corps (hereinafter collectively referred to as the province) to partially exempt small, medium and micro enterprises from the payment of three social insurance units has been extended until the end of December 2020.

The policy of halving the payment of three social insurance units by all provinces (except Hubei Province) for large enterprises and other insured units (excluding government agencies and institutions, the same below) has been extended to the end of June 2020.

1. Contents of the social security exemption and deferral policy The Vernacular Labor Law believes that "Document No. 11" clarifies that the social security exemption and deferral policy targets the pension, unemployment and work-related injury insurance premiums payable by the unit.

Among them, small, medium and micro enterprises are exempted from taxation. The exemption policy can be implemented until June. Hubei Province can expand the scope of exemption to all types of insured enterprises; other insured units such as large enterprises in other provinces across the country other than Hubei can be extended.

The tax levy will be reduced by half, and the tax reduction period shall not exceed 3 months; for enterprises that have serious difficulties in production and operation due to the impact of the epidemic, they may apply for deferment of social insurance premiums. In principle, the deferment period shall not exceed 6 months, and no fees will be charged during the deferment period.

Late payment fees.

According to the spirit of the policy, the social security reduction and exemption and payment deferral policies during the epidemic period are implemented in parallel. There is a reduction and exemption period before June, and a deferral period after that. Small, medium and micro HRO companies can be exempted from tax for up to 5 months, and large companies can only enjoy half the tax levy.

policy support.

2. Attributes and types of the HRO industry and HRO companies in the policy context. Since the human resources industry had not yet been industrialized in 2011, the Ministry of Industry and Information Technology promulgated the "Notice on Issuing the Standards for Classification of Small and Medium-sized Enterprises" (hereinafter referred to as

Human resources services are not covered by the "Notice").

Currently, HRO companies can determine attributes within the scope of "information transmission industry", "business service industry" or "other unspecified industries" based on the content of the service.

Human resources companies whose main business is recruitment can be applied to the scope of "information transmission industry", while other human resources services can be classified as "business services" or "others" accordingly.

However, human resources companies mainly engage in dispatch business or outsourcing business, and more of their income is reflected in capital flow. The number of people contracting a few projects may reach more than 300. Therefore, it is unlikely to be classified as "small, medium and micro".

A human resources company whose main business is outsourcing services is essentially the integration of the human resources company and its service industry. Therefore, the type of its contracting business determines the industry attributes of the HRO company.

If the human resources company is a large enterprise but the client is a small, medium and micro enterprise, the client's outsourcing services may be converted into recruitment services due to policy influence.

Therefore, there is flexibility for cost-sensitive companies to use recruitment services or outsourcing services when cooperating with HRO agencies between February and June.

3. The scope of personnel belonging to the HRO company is determined according to the number of small, medium and micro enterprises according to the "Notice". In combination with the Caishui [2018] No. 77 document, labor dispatch employees are calculated as the number of personnel of Party A's enterprise, and the personnel of the social security agent cannot be included in the human resources.

Regarding the company's number of personnel, only employees on the HRO company's employee basis can be counted as employees of the HRO organization. Therefore, outsourced personnel can be included in the statistical caliber of the human resources company's headcount.

At the same time, it should be noted that platform economy practitioners cannot be included in the scope of employees of HRO institutions.

4. The social insurance agency and payment business has not yet stagnated. "Document No. 11" clearly requires that enterprises must fulfill their obligation to withhold and pay personal contributions of employees in accordance with the law, and social security agencies must do a good job in recording personal rights and interests.

Teacher Bai believes that enterprises’ withholding and payment obligations mainly focus on pension and medical insurance. The social security payment business includes two parts: enterprise payment and employee payment. Enterprises can be exempted from payment based on policies, but there is no part of the employee payment work.

Therefore, the social security payment business of human resources agencies has not stopped.

However, the social security departments in various regions will issue localized policies based on document requirements, and there will be differences in regions. It is recommended that institutions pay attention to the specific introduction of local policies.

5. The overall impact of the reduction, exemption and deferment policies on the industry In terms of time, the exemption period for small, medium and micro enterprises is from February 2020 to June 2020; the halving tax reduction period for large enterprises is from February 2020 to April 2020;

The payment exemption period for enterprises in Hubei Province is from February to June 2020; the payment deferment period for enterprises in serious difficulties is from July to December 2020; in addition, the reduction, exemption and deferral policy will not have an impact on government agencies and institutions.

The Vernacular Labor Law believes that if the service customers of an HRO company are small, medium and micro enterprises and are identified as enterprises in severe difficulties, they may not need corporate social security payment services throughout 2020 and only need to provide services for individual payment; if they are large-scale

Enterprises with serious operating difficulties can enjoy a 50% reduction in tax collection before May. After May, there will also be a 6-month suspension period due to delayed payment.

In summary, except for large enterprises with good operating conditions, there is basically no demand for social security payment services from other enterprises this year. At the same time, since social security payment exemption or postponement period does not affect the identification of work-related injuries, enterprises may reduce the number of single-work injuries or work-related injuries.

Business needs of commercial insurance.

6. Industrialization and future layout of HRO companies. The structure of HRO companies in the future should form a group layout with recruitment companies, dispatch companies, outsourcing companies, service companies, tax preparation companies, gig companies, and consulting companies as business divisions.