A Study of Underreporting of Insured Salary for Small and Medium Enterprises in Taiwan

• Main Authors: Chin-Feng Chou, 周錦鳳
• Other Authors: Chiung-Yao Huang
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/46894693564733878716

碩士 === 國立雲林科技大學 === 會計系碩士班 === 100 === After the enforcement of the new Labor Pension System (hereafter, LPS) in Taiwan, it is found that some employers of Small and Medium Enterprises take the way of underreporting the insured salary to agents in order to save the labor pension expenditure . Concurrently, this under-declaration behavior also results the employees to reach the goal of reduce individual income tax burden. This study is thus motivated to examine the consequences of LPS related issues on Taiwanese Small and Medium Enterprises from the viewpoints of national tax, labor and health insurance. The discussions include the objects, the timing, the channels, the motivation and effects of the underreporting behavior of insured salary. We also use the case of Taiwan Banciao District Court civil judgment 100 annual labors v. No. 111 as an example to illustrate and discuss the impacts of LPS. The findings reveal that the Small and Medium Enterprises’ underreporting insured salary not only affect the rights of the insured employee, but also deteriorate the long-term financially healthiness of the labor insurance system. Besides, in some cases, the employers of Small and Medium Enterprises would confront with the severely economic consequences such as overdue tax, severe penalty, and the lawsuit.