OTHER PAYABLES AND OTHER CURRENT LIABILITIES

6 Months Ended

Jun. 30, 2022

OTHER PAYABLES AND OTHER CURRENT LIABILITIES

NOTE 14 – OTHER PAYABLES AND OTHER CURRENT LIABILITIES

At June 30, 2022 and December 31, 2021, other payables and other current liabilities are as follows:

Schedule of other payables
	June 30,		December 31,
	2022		2021
	(Unaudited)
Payroll and benefits ⁽¹⁾	$	1,871,277	$	1,890,535
Payable to suppliers		37,262		328,651
Commissions payable		466,945		567,337
Interest and penalties ⁽²⁾		11,472,598		10,444,819
Other current liabilities		733,494		800,503
Total	$	14,581,576	$	14,031,845

(1)

Payroll and benefits payable represents fringe benefits and last month salaries payable to the Company’s employees.

(2)

Interest and penalties represent estimated interest and penalties related to unpaid VAT and income taxes related to Beijing Luji, which is calculated at 0.05% per day from the day tax payment is due under applicable PRC laws and regulations. For six months ended June 30, 2022, the Company recorded an estimated penalty of $1,546,589 and $58,120 for unpaid VAT and income taxes, respectively. For three months ended June 30, 2022, the Company recorded an estimated penalty of $757,231 and $28,451 for unpaid VAT and income taxes, respectively.

Hanjiao Group, Inc. 10-Q