Social Security Payable
Code: 2160Account Information
| Financial Statement | Statement of Financial Position |
| Normal Balance | Credit |
Definition
Social insurance contributions payable to government authorities, including employee share and employer share. This account represents the company's liability to the General Organization for Social Insurance (GOSI).
Sub-accounts
GOSI Employee Share
GOSI Employer Share
Common Journal Entries
Dr. Social Insurance Expense
Cr. GOSI Payable
Dr. GOSI Payable
Cr. Bank Account
Dr. Social Insurance Expense
Dr. Salaries Payable
Cr. GOSI Payable
Dr. Social Insurance Expense
Cr. GOSI Payable
Dr. Social Insurance Expense
Cr. GOSI Payable
Dr. GOSI Payable
Cr. Bank Account
Dr. Social Insurance Expense
Dr. Salaries Payable
Cr. GOSI Payable
Dr. Social Insurance Expense
Cr. GOSI Payable
📐 IFRS vs US GAAP Accounting Treatment
❓ Frequently Asked Questions
A: Social Security Payable are liabilities owed by the company to the social insurance authority (e.g., GOSI in Saudi Arabia). They include the employee\'s share (deducted from salary) and the employer\'s share (an additional expense on the company). These amounts must be remitted to the authority monthly.
A: Percentages vary by country laws. In Saudi Arabia (GOSI), the total contribution rate is 22% (9% employee share, 12% employer share, 1% unemployment tax). These rates may differ for private vs. public sector and for Saudi vs. non-Saudi employees.
A: If social insurance contributions are not paid on time, the authority imposes late payment penalties on the unpaid amounts. These penalties may reach 1% per month of delay or more depending on each country\'s laws. Prolonged delay may lead to legal action.
A: The social insurance authority imposes late penalties up to 1% per month of delay or more depending on country laws, and may lead to seizure of company assets.
A: In Saudi Arabia, the system differs: Saudi employees are subject to GOSI at 22% (9% employee + 12% employer + 1% unemployment). Non-Saudi employees are not subject to social insurance (except in some special cases).