Circular No. 1328-TC/TQD guiding the collection of social insurance from production and business units

LETTER

OF THE MINISTRY OF FINANCE NUMBER 1328-TC/TQD ON SEPTEMBER 26, 1989
GUIDELINES FOR COLLECTING SOCIAL INSURANCE FROM PRODUCTION AND BUSINESS UNITS

RESPECTED: Provincial, City, and Special Zone Finance Departments under the Central Government

Following Circular No. 22 TT/LB dated June 16, 1989 of the Joint Ministry of Finance - Labor - War Invalids and Social Affairs regarding the "modification of the method for paying social insurance managed by the Ministry of Labor - War Invalids and Social Affairs," the Ministry of Finance provides additional guidelines on collecting social insurance from production and business units and independent economic accounting institutions within the state-owned economy as follows: business operations and independent economic accounting units in the state-owned economy sector as follows:

I. REGARDING THE OBJECTS OF SOCIAL INSURANCE PAYMENTS

Implement according to the provisions of Circular No. 11 TT/LB dated June 9, 1988 of the Joint Ministry of Labor - War Invalids and Social Affairs - Finance.

Production and business units and independent economic accounting institutions (hereinafter referred to as XNQD) and workers and staff members (CNVC) who are required to pay social insurance must strictly comply with the social insurance payment system.

II. LEVEL OF COLLECTION AND BASIS II. AMOUNT OF COLLECTION AND BASIS FOR CONTRIBUTIONS TO SOCIAL INSURANCE

1. Level of social insurance collection

1. Amount of social insurance collection

Social insurance managed by the Ministry of Labor, War Invalids, and Social Affairs shall be calculated and recorded in the production and business costs of XNQD at 10% of the wage fund and salary allowances of CNVC, divided as follows: XNQD retains 2% as a source of funds for difficult situation assistance for CNVC, while the remaining 8% is paid into the social insurance fund.

2. The wage fund serving as the basis for calculating social insurance includes the amounts stipulated in Decree No. 235/HĐBT dated September 18, 1985, Decision No. 202/HĐBT and Decision No. 203/HĐBT dated December 28, 1988 of the Council of Ministers and Circular No. 01/TT-LB, No. 02/TT-LB dated January 12, 1989 of the Ministry of Labor, War Invalids, and Social Affairs guiding the implementation of Decisions No. 202, 203/HĐBT. When the wage system is revised, the social insurance calculation must also be based on the new wages.

In cases where XNQD encounters difficulties in production and business operations, and CNVC have no work, temporarily stipulate:

- CNVC temporarily on leave continuously for less than three months do not need to pay social insurance.

- CNVC on leave continuously for three months or more, XNQD must deduct social insurance contributions for those CNVC starting from the fourth month onwards.

- CNVC studying or traveling abroad receiving living allowance, social insurance contributions are calculated based on the amount of living allowance received by the family.

1. Basis on the social insurance payment plan established by the unit and approved by the superior managing authority (also sent to the same-level finance agency) monthly along with III. PROCEDURES FOR PAYING SOCIAL INSURANCE

1. Based on the social insurance payment plan established by the unit and approved by the superior management authority (also sent to the same-level finance department), together with the monthly payroll period, XNQD submits proof of payment, sending it to the bank where the unit conducts transactions to deposit into the "social insurance revenue account" of the finance department.

2. The number of times social insurance is paid in a month is specified: if XNQD pays salaries to CNVC once a month, then social insurance is paid once on the day of salary payment; if XNQD pays salaries to CNVC twice or more a month, then social insurance is paid twice, the first time paying 50% of the monthly plan, the second time paying the remaining balance of the monthly plan on the last salary payment day of the month.

3. Regarding the social insurance revenue account: with the agreement of the State Bank of Vietnam, provincial finance departments - district and county finance offices implement opening account number 229 "Social Insurance Revenue Deposit" at local banks to monitor social insurance revenues from XNQD. The "Social Insurance Revenue Deposit" account is a dedicated account solely for collecting social insurance, debit side records social insurance revenues from XNQD, credit side records social insurance transferred to the "social insurance fund" of the Ministry of Labor, War Invalids, and Social Affairs, the balance on the debit side is the amount of social insurance yet to be transferred to the Ministry of Labor, War Invalids, and Social Affairs. Strictly prohibit units from using this account for other purposes. If the locality has already opened account number 229 for monitoring other economic contents, now it needs to agree with the State Bank of the province to open an additional account to separately monitor social insurance revenues.

4. Proof of social insurance payment uses the transfer check or cash payment voucher issued by the Ministry of Finance, the social insurance payment voucher requires the issuance of three copies:

- One copy sent to the district or county finance office (if the XNQD is managed by the district) or the provincial finance department (if the XNQD is managed by the central government or province).

- One copy given to the unit paying social insurance as a substitute for a debt notice.

- One copy retained by the bank where the enterprise makes the payment.

All vouchers must ensure compliance with all prescribed procedures.

5. Monthly, quarterly, and annually, XNQD must settle the amount of social insurance due and paid with the finance department (provincial or district finance department). If insufficient payments are made, they must be settled at the beginning of the next month or quarter; if overpayments are made, the excess will be deducted from the next month's or quarter's social insurance payment.

In case XNQD violates the social insurance payment regulations such as underpayment or late payment, in addition to making up the underpaid amount, they must also bear an additional penalty fee equal to the interest rate on non-term savings deposits published by the State Bank of Vietnam at that time on the underpaid amount. This penalty fee is accounted for as a deduction from the enterprise's funds in the year. If XNQD deliberately violates without a valid reason, after one month, the finance department has the right to issue a collection order and a fine order for the overdue amount and the penalty for late payment.

IV. RESPONSIBILITIES OF THE FINANCE AGENCY
IV. RESPONSIBILITIES OF THE FINANCE DEPARTMENT (SYSTEM OF DIRECTIVES) IN ORGANIZING THE COLLECTION OF SOCIAL INSURANCE

1. Ministry of Finance (Department of Directives): implements guidance and inspection of provincial finance departments (district bureaus, finance directive offices) in implementing the social insurance collection system from planning to execution, consolidation, and reporting of social insurance collections in XNQD monthly, quarterly, and annually, treating it as a revenue from XNQD paid to the state budget.

2. Provincial, city, and district finance departments:

- Inspect and urge XNQD to timely and fully pay social insurance according to the prescribed regulations. Issue collection orders and fines against units violating the social insurance payment regulations.

- Participate with units in planning and settling the amount of social insurance paid. Aggregate and report the plan and results of social insurance collection monthly, quarterly, and annually to higher-level finance departments.

The deadline for periodic social insurance collection reports is the same as the deadline for reporting state budget revenues in the enterprise revenue reporting system number: 300 TC/TQD dated December 20, 1986.

On the 5th day of each month, transfer the entire amount of social insurance contributions collected in the previous month to the "social insurance fund" account of the Labor, Invalids, and Social Affairs authority at the same level. At the end of each quarter, no later than the 20th day of the first month of the following quarter, settle the amount of social insurance contributions collected with the Labor, Invalids, and Social Affairs authority at the same level.

In cases where the deadline has passed but the funds have not been transferred to the account of the Labor, Invalids, and Social Affairs authority without a valid reason, the Labor, Invalids, and Social Affairs authority has the right to notify the Finance authority and request the Bank to deduct the money from the "social insurance collection" account of the Finance authority to the "social insurance fund" account of the Labor, Invalids, and Social Affairs authority at the same level.

V. SOCIAL INSURANCE COLLECTION FEES

1. Recipients of social insurance collection fees.

These include units and cadres and employees involved in state-owned enterprise social insurance collection work, including: the Collection Bureau, branches, and district offices under the Collection Bureau, provincial and municipal finance departments (Collection Bureau), and county and district finance departments (Collection Bureau).

2. Sources of collection fees and procedures for granting collection fees.

- Based on the annual results of social insurance fund collections, the Ministry of Finance, after consulting with the Ministry of Labor, Invalids, and Social Affairs, decides the level of collection fees for the state-owned enterprise collection system.

- The social insurance collection fee rate is 0.5% of the total amount of social insurance funds collected by state-owned enterprises and transferred to the "social insurance fund" account of the Labor, Invalids, and Social Affairs sector.

- The financial resources for the social insurance collection fee are provided by the Central Budget and are deducted from the annual social insurance budget that the Central Budget must allocate to the Ministry of Labor, Invalids, and Social Affairs.

The State-Owned Enterprise Collection Bureau, based on the results of social insurance fund collections by each unit, allocates the collection fee levels to the Provincial Finance Departments. During the year, based on the quarterly results of social insurance fund collections, it requests the Ministry to temporarily deduct the collection fee to temporarily transfer to the units; at the end of the year, it settles the social insurance fund collections and reports the collection fee deductions to the Minister of Finance and simultaneously to the Ministry of Labor, Invalids, and Social Affairs.

- The Director of the Provincial Finance Department, based on the results and participation in social insurance fund collection work by each unit, allocates the collection fees to the State-Owned Enterprise Collection Departments under the Provincial Department and the County and District Finance Departments (Collection Bureau).

3. Use of collection fees.

The social insurance collection fee is essentially a payment made by the Labor, Invalids, and Social Affairs sector to the state-owned enterprise collection system for organizing social insurance collections, requiring its use.

- First, to cover expenses related to social insurance collection work such as printing forms, books, office supplies; organizing meetings for mid-year and year-end reviews, training sessions, etc.

- To reward units and individuals participating in social insurance collection work.

Distribution of social insurance collection fees:

+ The Director of the State-Owned Enterprise Collection Bureau retains 0.05% of the total annual social insurance fund collections to cover general social insurance collection work expenses and rewards for cadres and employees participating in social insurance collection work.

+ Provincial Finance Departments, including branches and district offices under the State-Owned Enterprise Collection Bureau, and county and district finance departments retain 0.45% of the total social insurance fund collections from state-owned enterprises in their localities to cover local social insurance collection work expenses and rewards for cadres and employees. At the end of the year, they settle the use of the social insurance collection fee with the State-Owned Enterprise Collection Bureau to compile a report for the Minister of Finance.

VI. IMPLEMENTATION

1. The Ministry stipulates the reporting forms accompanying this directive letter, including:

- Form for reporting the annual and quarterly social insurance collection plans.

- Form for reporting monthly, quarterly, and annual social insurance collection results.

2. Provincial Finance Departments, State-Owned Enterprise Collection Branches guide and organize the management staff of state-owned enterprises to cooperate with the Provincial Labor, Invalids, and Social Affairs Departments to review the social insurance payment situation of each state-owned enterprise, including the amount due (including the amount transferred in 1988), the amount paid, and the amount still due for the first six months of the year, calculate and determine the social insurance amount for the last six months and the full year of 1989, take measures to urge enterprises to pay promptly. Summarize and report to the Ministry (State-Owned Enterprise Collection Bureau) about the possibility of collecting social insurance for 1989, calculate and build the social insurance collection plan for 1990 in the fourth quarter of 1989.

Provincial Finance Departments, county and district finance departments coordinate with the Labor, Invalids, and Social Affairs sectors and the Banking sector to implement these regulations effectively. During implementation, if there are any difficulties, they must report promptly to the Ministry for guidance and resolution.

REPORT ON SOCIAL INSURANCE COLLECTION IMPLEMENTATION

Average number of employees per month year 199

Unit of measurement:

I/ State-Owned Enterprises

1. Enterprise...

2. Enterprise...

.....................

II/ Provincial, Municipal State-Owned Enterprises

1. Enterprise...

2. Enterprise...

III/ County, District State-Owned Enterprises

1. County...

County...

A. Total State-Owned Enterprises (I + II + III)

B. Total Amount Transferred to the Labor, Invalids, and Social Affairs Sector's Social Insurance Fund

REPORT ON THE SOCIAL INSURANCE COLLECTION PLAN FOR THE YEAR (QUARTER)…

A- Data:

Total Number of State-Owned Enterprises

I/ State-Owned Enterprises

1. Enterprise A

2. Enterprise B

II/ Provincial, Municipal State-Owned Enterprises

1. Enterprise A

2. Enterprise B

III/ County, District State-Owned Enterprises

1. County A

2. County B

B- Explanation: - Briefly analyze the implementation of the reporting year and the planned year...

- Propose measures to implement...

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Head of the unit