How do labor dispatch companies pay social security?

As far as the "labor dispatch" service is concerned, the profit of the dispatching company lies in charging the service fee of each employee to the employer on a monthly basis.

For example, Company A has 20 employees, who cooperate with Labor Dispatching Company B and are employed by dispatch. The charging standard of labor dispatch company B is 80 yuan/month for each employee. Then, Company A will pay 1.600 yuan service fee when it pays employee salaries and social security fees to Labor Dispatching Company B on a monthly basis (because Labor Dispatching Company definitely provides payroll and social security services). This 1600 yuan is the profit of the labor dispatch company.

The profit of labor dispatch companies mainly depends on "scale effect". Usually, every employee of a labor dispatch company will take care of hundreds or even thousands of dispatched employees. If an employee takes care of 500 dispatched employees, according to the service fee of 80 yuan/month/person, the income he brings to the company is 40,000 yuan per month.

Therefore, labor dispatch service is a win-win situation for employers and labor dispatch companies: employers save labor, worry and money, and labor dispatch companies also get legal profits.

The situation you mentioned does not exist in regular labor dispatch companies for the following reasons:

First, how much the employer intends to pay employees has no direct relationship with the labor dispatch company (of course, the premise is that it must be legal, such as meeting the local minimum wage standard and paying social security and other benefits according to law. Otherwise, under the mode of labor dispatch, the laborer signs a labor contract with the labor dispatch company, and the labor dispatch company is the first respondent in the event of a dispute, so the labor dispatch company will not cooperate with the illegal employer. As long as the labor dispatch company is based on the employer, of course, the labor dispatch company will sometimes provide some consulting services to the employer free of charge, suggest that the employer hire workers at market prices, and also help the employer formulate the salary system.

Secondly, according to the general operation process, before paying employees every month, the labor dispatch company will put the salary table calculated by employees in that month (including wages payable, social security benefits payable, individual taxes, take-home wages, total wages, etc. ) to the person in charge of the employer for confirmation, and then the person in charge will transfer the "total wages and benefits payable+service fee of the labor dispatch company" to the labor dispatch company after confirmation. After the labor dispatch company pays the employee's salary, each employee will get the salary slip according to the amount in the above salary table. With this kind of double-layer supervision, it is impossible for labor dispatch companies to earn the difference. Otherwise, if you are an employer, the labor dispatch company will charge you a service fee and earn the difference. Do you agree? Hmm. How interesting

Third, labor dispatch companies should handle resignation and file management for employers, and some labor dispatch companies also recruit employees for employers free of charge. Therefore, for the labor dispatch company, the greater the turnover of the employer, the greater the workload and the greater the cost. Therefore, the high salary of the employer is a good thing for the labor dispatch company, because it can reduce the flow of personnel, so the labor dispatch company will not earn the difference.

Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.