What taxes should be paid by labor outsourcing employing units Labor outsourcing income is taxable as the balance of the full price and out-of-the-price expenses collected by the labor company from the employing unit minus the wages collected and transferred for use by the labor force and the social insurance and housing fund for the labor force. Attachment: If the labor company accepts the commission of the employing unit and arranges the labor force for the employing unit, and the employing unit pays the wages payable to the labor force and the social insurance (including pension, medical insurance, unemployment insurance, work injury insurance, etc.) and the housing fund for the labor force to the labor company, the taxable turnover shall be the balance of the total price and out-of-the-price expenses charged by the labor company from the employing unit, less the wages and social insurance and the housing fund for the labor force collected and paid on behalf of the employing unit. The taxable turnover shall be the balance of the total price and extra-price charges received by the labor company from the employing unit minus the wages and the social insurance and housing provident fund paid and received for the laborers. The tax rate of the general taxpayer's labor outsourcing company is a few points Notice of the Ministry of Finance and the State Administration of Taxation on Further Clarifying the Policies of the Comprehensively Pushing Forward the Pilot Program of Camp Reform and Increase in Taxation on Labor Dispatching Services and Toll Road Toll Deductions (Cai Shui 〔2016〕 No.47) Notice on the Comprehensive Pilot of Changing Business Tax to Value-added Tax (Cai Shui [2016] No. 36), the general taxpayers can calculate and pay VAT in accordance with the general taxing method by taking the entire price and out-of-the-money expenses obtained as the sales amount; or they can choose to pay tax on a differential basis by taking the entire price and out-of-the-money expenses obtained, deducting the wages and benefits paid to the employees on behalf of the employing units, and the balance after applying for the social insurance and housing provident fund on behalf of the employees as the sales amount, and calculate the VAT in accordance with the simple taxing method by taking the balance of the sales amount as the simple taxing method. The VAT shall be calculated according to the simplified tax method at a rate of 5% on the sales amount. Taxpayers who choose to pay differential tax shall not issue special VAT invoices but may issue ordinary invoices for the fees collected from labor-using units for the payment of wages and benefits to the dispatched employees as well as for the application of social insurance and housing provident fund for the dispatched employees. Labor dispatch service refers to the service of dispatching employees to the employer to accept the management of the employer and work for the employer in order to meet the demand of the employer for various types of flexible labor. I hope that through the above content you can have a more in-depth understanding of the issues related to labor outsourcing. If your situation is more complex, this site also provides lawyers online consulting services, you are welcome to legal advice.

The Chinese people*** and the State Labor Contract Law Article 58 labor dispatch unit is the employer referred to in this law, shall perform the obligations of the employer to the workers. A labor contract concluded between a labor dispatching unit and a dispatched worker shall, in addition to the matters stipulated in Article 17 of this Law, also state the employing unit of the dispatched worker, as well as the duration of the dispatch and the job position. The labor dispatch unit shall enter into a fixed-term labor contract with the dispatched workers for a period of more than two years, and pay the labor remuneration on a monthly basis; during the period in which the dispatched workers are not working, the labor dispatch unit shall pay them monthly remuneration in accordance with the minimum wage standard stipulated by the people's government of the location.