What are the disadvantages of paying wages in cash?

Disadvantages: There are certain tax risks. It is not conducive to the effective control of the government tax department. Once tax evasion occurs, it is difficult to find out and may be mixed with criminal suspects, which is not conducive to management.

1. Can enterprises pay their salaries in cash? First, the answer is yes. It is legal for enterprises to pay wages in cash. Article 4 of the Provisional Regulations on Wage Payment stipulates that "wages shall be paid in legal tender". As RMB is the legal tender, it is in full compliance with the law for enterprises to pay wages in cash.

2. So what are the tax risks of paying wages in cash? Paying wages in cash, on the one hand, is convenient for enterprises to operate, on the other hand, employees are satisfied with receiving a full bundle of cash, but this form has brought great difficulty to tax inspection. Now is the era of mobile Internet payment. China is vigorously promoting non-cash settlement and fully implementing the mode of bank paying wages. If the enterprise is not in a remote area, there are obviously basic households, and if the salary is paid in cash, there will be certain tax risks. If an enterprise needs to pay wages in cash, it should pay attention to the following issues to avoid tax risks:

1) Wages paid by enterprises in cash should also be included in the base of social security, because according to the requirements of labor law, enterprises must accrue social security on the basis of wages paid to employees.

2) The part of wages paid by the enterprise in cash shall be recorded in accordance with the regulations, included in the total wages of employees, and personal income tax shall be withheld and remitted based on the total wages of employees.

3) The wages paid by enterprises in cash should be deducted according to the facts before the enterprise income tax, and two conditions need to be met: ① the wages paid are within a reasonable range; (2) can provide employees to receive salary signature, enterprise documents about salary system, personal income tax withholding certificate and other valid certificates.

Generally speaking, it is a free choice for enterprises to pay wages in cash, which is not necessarily tax evasion. However, enterprises should also pay attention to the above problems when choosing the form of cash payment, pay attention to reasonable tax avoidance, and don't add unnecessary risks to enterprises for temporary convenience.

1. Salary payment is the specific payment method of salary. Including how to calculate the remuneration that employees should get after completing certain work within the working hours of the system, or how to pay wages under special circumstances. It mainly includes: wage payment items, wage payment level, wage payment form, wage payment object, wage payment time and wage payment under special circumstances.

2. Wage payment items generally include hourly wages, piecework wages, bonuses, allowances and subsidies, wages paid for extended working hours and wages paid under special circumstances. However, the following labor income of workers does not belong to the wage range:

(1) Social insurance benefits paid by the unit to individual employees, such as funeral pensions and relief funds, subsidies for living difficulties, and family planning subsidies. ;

(2) Labor protection expenses such as work clothes, antidotes and refreshing drinks paid by the employer to the workers;

(3) All kinds of labor remuneration and other labor income that are not included in the total wages according to the regulations, such as invention award, national spark award, natural science award, scientific and technological progress award, rationalization proposal and technical improvement award, Chinese skill award, etc., are paid according to the regulations of the state, as well as manuscript fee, lecture fee and translation fee.

Time and requirements of wage payment: China's laws and regulations on wage payment clearly stipulate that wages should be paid to workers themselves on a monthly basis in the form of money, and wages of workers should not be deducted or delayed without reason. During legal holidays, funeral leave and participation in social activities according to law, the employer shall pay wages according to law. Wages should be paid on a monthly basis, that is, wages should be paid on the date agreed between the employer and the employee. In case of holidays or rest days, it should be paid in advance on working days. Wages are paid at least once a month. For those who implement hourly wage system and weekly wage system, wages can also be paid on a daily or weekly basis. For workers who have completed one-time temporary labor or specific work, the employer shall pay wages after completing the labor tasks in accordance with relevant agreements or contracts.