Expense 119
or even zero rates of interest for purposes of buy-
ing houses, vehicles, furniture, or other goods or
services (these amounts are also recorded as in-
terest receivable as explained in paragraph 5.108)- In the case of public corporations, wages and
salaries in kind can also include bonus shares or
stock options^12 distributed to employees.
6.18 Some of these services, such as transportation
to and from work, parking, and child care may have
some of the characteristics of use of goods and ser-
vices by the employee. However, when governments
are obliged to provide these benefi ts to attract and re-
tain labor, they are similar to other forms of compen-
sation of employees and should be recorded as such.
If the same types of benefi ts are provided because of
the nature of the production process or the physical
conditions under which employees have to work, they
should be recorded as use of goods and services (22)
expense of the employer.
Employers’ social contributions [GFS] (212)
6.19 Employers’ social contributions are social
contributions payable by employers to social security
funds, employment-related pension funds, or other
employment-related social insurance schemes to ob-
tain entitlement to social benefi ts for their employ-
ees. Employers’ social contributions are payable by
employers for the benefi t of their employees, and are
therefore recorded as a component of compensation
of employees. Employers’ social contributions [GFS]
(212) exclude amounts connected with own-account
capital formation (see Table 6.2). Social protection is
described in Appendix 2.
6.20 Some social contributions are payable directly
by the government unit that is the employer to a second
public sector unit, oft en a social security fund or a pub-
lic fi nancial corporation. It is administratively more effi -
cient for the employer to pay the contributions on behalf
of their employees, rather than each employee making
individual payments. Th e administrative arrangement
should not obscure the underlying economic reality—
namely, that the government unit incurs an expense
for compensation of employees payable to households,
while the employee contributes to the social insurance
(^12) Under a stock option agreement, the employer gives an em-
ployee the option to buy stocks or shares at a specifi ed price at a
future date (see paragraphs 9.77–9.81).
scheme.^13 Th ese transactions are not eliminated in con-
solidation because they are rerouted to better show the
economic nature of the transaction, as described in
paragraph 3.28, fi rst to the employees and then from
the employees to the social insurance schemes.
Actual employers’ social contributions [GFS] (2121)
6.21 Actual employers’ social contributions con-
sist of actual contributions payable to social secu-
rity funds, employment-related pension funds, and
other employment-related social insurance schemes
to obtain entitlement to social benefi ts for their
employees. Th is category consists of actual contribu-
tions payable to insurance enterprises, social security
funds, or other institutional units responsible for the
administration and management of social insurance
schemes, or employment-related pension schemes. As
indicated in Table 6.2, actual employer’s social contri-
butions [GFS] (2121) also exclude amounts connected
with own-account capital formation.Imputed employers’ social contributions
[GFS] (2122)
6.22 Imputed employers’ social contributions are
the amounts calculated and added to actual contribu-
tions, suffi cient to exactly match the increases in em-
ployees’ social benefi t entitlements. Th ese imputed
employers’ social contributions may relate to pension
and to nonpension benefi ts. Imputed employers’ social
contributions [GFS] (2122) exclude amounts connected
with own-account capital formation (see Table 6.2).Imputed employers’ social contributions related to nonpension benefi ts.
6.23 Some government units provide employment-
related nonpension social benefi ts directly to their
employees, former employees, or dependents out of
their own resources without involving an insurance
enterprise (see paragraph 6.16 for examples of the
types of benefi ts payable). In this situation, employees(^13) Th e situation is parallel to one in which income taxes payable by
employees are deducted by employers from the wages or salaries
and paid directly to the tax authorities. Th e direct payment of
social contributions, or income taxes, by government units as
employers to other government units, such as social security
schemes, other employment-related social insurance schemes, or
tax authorities, is merely a shortcut taken on grounds of adminis-
trative convenience and effi ciency.