Social Security Late Payments More Than Principal

Mainly stems from the accumulation of late fees resulting from failure to pay social security fees in full and on time. When the amount of late payment exceeds the original social security principal, it will bring a heavy financial burden to enterprises and individuals.

I. Causes of late payment

The late payment of social security is caused by the failure of the employer or individual to pay the social security fees in accordance with the stipulated period or in full. According to the relevant laws and regulations, once the payment is overdue or insufficient, the late payment fee is required to be paid according to the prescribed percentage. The existence of late payment fee aims to urge employers and individuals to pay social security on time and in full to ensure the normal operation of the social security system.

The calculation of late payment fee

The calculation of late payment fee is usually based on the amount of overdue or insufficient payment and the overdue time. Generally speaking, the percentage of late payment is higher and increases with the length of time overdue. Therefore, if social security contributions are not paid for a long period of time, the amount of late fees accumulated is likely to exceed the original principal amount due.

Third, the impact of late payment is more than the principal

When the late payment of social security fees exceeds the original principal payable, it will bring a series of negative impacts to enterprises and individuals. First, companies and individuals need to bear higher economic costs, which may lead to increased pressure on business operations and a deterioration in personal finances. Secondly, the existence of late payment may affect the credit record of enterprises, which in turn may affect their financing and cooperation. For individuals, late payment may lead to personal credit damage, affecting future loans, home purchases and other financial activities.

Four, to avoid the accumulation of late payment measures

In order to avoid the accumulation of social security late payment, employers and individuals should take the following measures: First, strengthen the awareness of social security payment, to ensure that the full payment of social security fees on time. Secondly, establish a sound social security payment system and standardize the social security payment process within the enterprise. In addition, for enterprises and individuals who have real difficulties in paying social security on time, they can apply to social security institutions for deferred payment or payment in installments in order to reduce the economic burden.

In summary:

The phenomenon of late payment of social security is more than the principal, which mainly stems from the accumulation of late payment fees arising from the failure to pay social security fees in full and on time. In order to avoid this phenomenon, employers and individuals should strengthen the awareness of social security payment, establish a sound social security payment system, and in case of difficulties, timely application to the social security institutions for deferred payment or payment in installments. At the same time, the government and all sectors of society should also strengthen the publicity and supervision of the social security system, *** with the maintenance of the stability and fairness of the social security system.

Legal basis:

The Social Insurance Law of the People's Republic of China

Article 86 stipulates:

If an employer fails to pay the social insurance premiums in full and on time, the social insurance premium collection agency shall order the employer to pay the premiums within a certain period of time or to make up for them, and shall impose a late fee of five ten-thousandths of one percent of the total amount of the premiums on a daily basis from the date of non-payment; and if the employer fails to pay the premiums after the expiry of the deadline, the relevant administrative department shall impose a fine of not less than double and not more than triple the amount of unpaid contributions.