The Impact Of Tax And Fee Cut On Social Security Payment Compliance

At present,it is still common for enterprises to underpay or late pay social insurance premiums.Social insurance fee evasion not only damages the long-term well-being of workers,but also affects the sustainable development of social security funds.Social security payment compliance is closely related to corporate burden and financial status.In recent years,China has implemented tax and fee reduction policies,which have significantly reduced the burden of enterprises and promoted their stable development.Can a wide range of tax reduction and fee policy improve our country enterprise social security payment to comply?What is the mechanism?On the one hand,the study of this problem can expand the research on the influencing factors of corporate social security compliance;on the other hand,it provides empirical evidence for the management of corporate fee evasion in the context of serious fee evasion problems.Based on this,this paper constructs a two-factor fixed effects model to study the impact of tax and fee reduction policies on corporate social security payment compliance,and empirically tests the action path of these policies based on their impact on corporate cash flow adequacy and labor employment.Firstly,this paper uses the data of A-share listed companies other than the financial sector from 2009 to 2020 to establish two-factor fixed effects model for basic regression,and explores the internal mechanism of the impact of tax and fee reduction policies on corporate social security payment compliance by taking cash flow adequacy and labor employment as mechanism variables.The results show that the policy of tax and fee reduction can reduce the incentive of enterprise fee evasion by improving cash flow abundance,but at the same time,it can increase the incentive of enterprise fee evasion by improving the level of labor employment.In general,tax and fee reduction policies significantly promote the improvement of corporate social security payment compliance.For every 1%reduction of corporate tax burden,the level of corporate social security payment compliance increases by 0.149%.In order to further verify the reliability of the conclusion,the robustness test is carried out by replacing variables,eliminating policy interference and changing measurement methods,and the endogeneity problem is solved by instrumental variable method and the construction of differential difference model.Next,this paper analyzes the heterogeneity from three perspectives:enterprise size,social security expenditure pressure and employee bargaining power.The research shows that the tax and fee reduction policies have a more significant impact on the payment compliance of small-scale enterprises,labor-intensive enterprises and enterprises in areas with lower bargaining power.Further analysis shows that tax and fee reduction policies can improve the compliance of enterprises’ social security payment and help enterprises attract high-quality employees.The cost pressure caused by the improvement of social security payment compliance will force enterprises to improve production efficiency through technological innovation,thus enhancing enterprise value.Finally,based on the empirical research results,this paper puts forward four policy suggestions,including strengthening tax collection and administration and reasonably reducing corporate tax burden to improve corporate social security payment compliance and effectively reduce corporate tax burden;exploring differentiated policies to cut taxes and fees to make them more flexible;publicizing social security policies to raise workers’ awareness of protecting their rights.The research innovation of this paper includes two aspects:the expansion of research content and the innovation of research perspective.In terms of research content,it expands the research on influencing factors of enterprise social security payment compliance,and forms a beneficial supplement to existing literature.In terms of research perspective,this paper analyzes the impact of tax policies on corporate social security payment compliance from the perspective of tax reduction and fee policies for the first time,and evaluates the heterogeneity of policy effects from multiple perspectives.