TAX LIABILITY OF EMPLOYEES AND EMPLOYERS TO PAY THE SOCIAL SECURITY CONTRIBUTIONS, BETWEEN NATIONAL REGULATION AND SOCIAL REALITY
TAX LIABILITY OF EMPLOYEES AND EMPLOYERS TO PAY THE SOCIAL SECURITY CONTRIBUTIONS, BETWEEN NATIONAL REGULATION AND SOCIAL REALITY

Summary/Abstract: Starting with 2018, the direction of tax policy focusing on social securitycontributions in Romania fundamentally changed, along with the entering into force ofthe provisions of OUG (Government Emergency Ordinance) 79/2017 for amendmentand addition of Law no. 227/2015 on the Tax Code. The government based thisemergency solution on the need of reforming the public social security systems inRomania in order to increase the level of collection of incomes to the state socialsecurity budget and of responsibility of employers regarding the on-time payment ofcompulsory social security contributions due both by them and by employees. In thisregard, they pursued the decrease of the number of compulsory social securitycontributions, the employer hereafter aiming at establishing, withholding, declaringand paying the tax liabilities due by employees and also directly. But the balancebetween employer and employees was unbalanced through these amendments, withregard to the tax liability payment of the social security contributions, having majorconsequences on the employees´ net salary rights.

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