Bureau of Labor Insurance checked taxed income data and proactively made upward adjustments if insurance salary for labor/employment insurance or labor pension is understated
To protect the rights and interests of the workers and avoid any understatement of the insurance salary for calculating labor/employment insurance or labor pension contribution, the Bureau of Labor Insurance (BLI) has checked the declared amount against the taxed income data of 2018. If any understatement of insurance salary amounts or contribution wage by the employer was discovered, the BLI has proactively made upward adjustments on a batch-by-batch basis. The payable premium for the labor/employment insurance and labor pension contribution would be calculated based on the adjusted amount, which became effective from the date of proactive adjustment (July 1, 2019 and August 1, 2019).
According to the BLI, with the assistance of the Ministry of Finance, it was able to obtain provisional taxed income data for 2018 for carrying out proactive adjustments in 2019. The taxed income data, however, is not based on the information of the current year. Due to lapses in time, if the adjusted amount does not match the current monthly salary of the insured (workers), the insured unit may request correction by sending proof of salary (e.g. salary slip) to the BLI within 30 days after receipt of the notification for proactive adjustment (which would be sent respectively at the end of June and the end of July of 2019).
The BLI estimated that it would notify more than 30,000 insured units of the labor/employment insurance about the proactive adjustment, which would be enforced on more than 120,000 insured employees. This will lead to an increase in monthly premium income by more than NT$50 million. The BLI would also inform more than 40,000 labor pension contribution units about this adjustment, with over 170,000 workers affected. The estimated increase in pension funds per month is more than NT$ 80 million.
The BLI reiterated that, for units requiring repeated or consecutive adjustments, the BLI will follow up and monitor such cases and conduct special audits. Penalty shall be imposed once the violation has been confirmed. The purpose is to urge employers to report correct insurance salary and contribution wage information and to actively protect the rights and interests of workers.