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The Ultimate Guide to Streamlining Your Social Security: A Step-by-Step Process to Navigate the Complex System.

The insurance-cutting process and procedures can be quite intricate and complex. Let's unravel and explore these intricacies together and simplify the understanding of these processes.

Administrator

31 August, 2024

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When an employee resigns, the company has to go through the process of reducing their social insurance coverage. However, many businesses are not fully aware of the procedures involved, which can cause difficulties. Let’s explore these details with Bach Hoa XANH!

1When do you need to report a reduction in social insurance contributions?

A company will report a reduction in social insurance contributions when an employee leaves due to termination or unilateral termination of their contract.

Here are some scenarios that require reporting a reduction in social insurance contributions:

The company terminates the employment contract.
The employee takes sick or maternity leave for more than 14 days in a month.
The employee requests unpaid leave for 14 or more working days in a month.
The employee’s contract is temporarily suspended.

The company should report the reduction starting from the first day of the following month. If the company does not intend to make supplementary payments for the next month, they can file a report for the next month starting from the 28th of the current month.

2What documents are needed to report a reduction in social insurance contributions?

To report a reduction in social insurance contributions, you will need to prepare the following documents:

– Declaration of participation and adjustment of social insurance, health insurance, and unemployment insurance information (Form TK1-TS).

– Declaration of the unit’s participation and adjustment of social insurance, health insurance, and unemployment insurance information (Form TK3-TS).

– List of employees participating in social insurance, health insurance, and unemployment insurance, etc. (Form D02-TS).

– Information sheet (Form D01-TS)

3What is the procedure for reporting a reduction in social insurance contributions?

Submission at the social insurance agency

Direct submission can be done either in person at the agency or by mail. The employer can go directly to the social insurance agency managing their company to submit the documents once they have prepared all the necessary paperwork.

Although less common, submission by mail is also possible. However, few social insurance agencies still accept direct reports of employee reductions in this manner.

Online submission

Online submission is becoming increasingly popular. Companies will use social insurance declaration software to create a file for the report. Then, they will use their digital signature device (Token) to submit the report to the social insurance agency through a specific website.

First, the company registers for an electronic social insurance transaction account on the Vietnam Social Insurance Electronic Transaction Portal. Next, they need to download and install the social insurance declaration software to declare and export the file.

4What are the employer’s responsibilities when reducing their workforce?

According to Article 47 of the 2012 Labor Code, the employer’s responsibilities when reducing their workforce include:

Informing the employee in writing of the termination of their employment contract at least 15 days in advance.
Settling all relevant amounts related to the rights and interests of both parties within 7 days.

Completing the procedures for confirmation and returning the employee’s social insurance book and other relevant documents.
In the event of the company’s bankruptcy, the employee’s unemployment benefits and other entitlements according to the collective labor agreement and employment contract shall be prioritized for payment.

Frequently asked questions

The first step is to create an online account with the Social Security Administration (SSA). This will allow you to access and manage your Social Security information and benefits easily. Once you have an account, you can review your earnings history and verify that your recorded earnings are accurate. You can also use the online portal to apply for benefits, replace a lost card, and conduct other Social Security-related business.

To create an online account with the SSA, you will need to provide some personal information, including your name, date of birth, Social Security number, and a valid email address. You will also be asked to create a username and password, and to choose security questions and answers. It is important to keep this information secure and confidential.