The social security account to be reported refers to the special account for "social insurance premiums to be reported" designated by the state treasury by the flexible employees and individual urban and rural residents through signing contracts to deduct money and paying by themselves. The tax authorities will issue a collection letter every day, turn it over to the state treasury through the horizontal network system and settle the special accounts.

The original text of the notice of five ministries and commissions of the state states that the new social insurance premiums paid by the tax authorities to individual flexible employees and urban and rural residents will be temporarily paid to the state treasury through the establishment of a special account for social insurance premiums, and declared under the financial account settled by the state treasury (commercial banks or credit cooperatives).

What is social insurance?

Social insurance is a social and economic system that provides income compensation for people who lose their ability to work, temporarily lose their jobs or lose their jobs due to health reasons. Social security mainly includes endowment insurance, medical insurance, unemployment insurance, industrial injury insurance and maternity insurance. Some units can pay five insurances, flexible employees generally pay pension and medical care, and urban and rural residents also pay pension and medical care.

The social insurance plan is organized by the government, forcing a certain group to use part of its income as social insurance tax (fee) to form a social insurance fund. Under certain conditions, the insured can get fixed income or loss compensation from the fund. It is a redistribution system, and its goal is to ensure the reproduction of material and labor and social stability.