Do corporate firms pay social security

Enterprise company legal person can not pay social security. Legal person is not a natural person, according to law, independent enjoyment of civil rights and civil obligations of the organization. The company is a corporate legal person, able to engage in business activities according to law, bear civil liability. Company legal person does not need to pay social security.

Social insurance is a social and economic system that provides income or compensation to a population that is incapacitated, temporarily out of work, or has suffered a loss due to health reasons. The social insurance scheme is organized by the government, which forces a certain group of people to pay a part of their income as social insurance tax (fee) to form a social insurance fund, from which the insured can receive a fixed amount of income or compensation for loss if certain conditions are met; it is a redistributive system, whose goal is to ensure the reproduction of material and labor force and the stability of the society. The main items of social insurance include pension insurance, medical insurance, unemployment insurance, work injury insurance and maternity insurance.

Characteristics of Social Security

1. Guarantee: it means to guarantee the basic life of workers.

2. Universality: social insurance covers all social workers.

3. Mutual assistance: utilizing the combined efforts of those who are insured to help someone who is at risk, to help each other and to meet urgent needs.

4. Compulsory: limited by national legislation, mandatory for employers and employees to participate.

5. Welfare: social insurance is a kind of governmental action, which does not aim at making profit

Main Functions

1. Function of Stabilizing Social Life

2. Function of Redistribution

3. Function of Promoting Socio-Economic Development: the first one is that the social insurance system functions as an important tool of demand management, thus playing a positive role in the economy. The first is that the social insurance system functions as an important tool for demand management, thus exerting a positive effect on the economy. The second is that the effective utilization of the social insurance fund can contribute to the sustained prosperity of the economy.

Legal Basis

Article 3 of the Company Law of the People's Republic of China

The company is an enterprise legal person, has independent legal person property and enjoys the right of legal person property. The company shall be liable for the debts of the company with all its property. The shareholders of a limited liability company shall be liable to the company to the extent of their capital contributions; the shareholders of a joint-stock company shall be liable to the company to the extent of their subscribed shares.

Article 57 of the Chinese People's **** and National Code

A legal person is an organization that has the capacity for civil rights and civil acts, and independently enjoys civil rights and undertakes civil obligations according to law.

Article 60 of the Chinese People's **** and National Code

Legal persons independently bear civil liabilities with all their property.