What if the company owes social security fees and fails to pay them?

The company's failure to pay social security fees is a serious problem, which may have many negative effects on the company and employees. Social insurance premium is an important guarantee for employees' rights and interests, and it is also the social responsibility of the company.

First, it affects the rights and interests of employees.

Social security expenses include endowment insurance, medical insurance, unemployment insurance, industrial injury insurance and maternity insurance, which are directly related to the vital interests of employees. If the company does not pay social security fees, employees' social security rights and interests will not be guaranteed, and employees may not enjoy due protection in case of accidents or medical assistance.

Second, facing legal sanctions.

According to the provisions of the Social Insurance Law of People's Republic of China (PRC), if the employer fails to pay the social insurance premium in full and on time, the social insurance collection agency shall order it to pay it within a time limit or make up for it, and from the date of default, an overdue fine of 0.5% shall be charged on a daily basis; Failing to pay within the time limit, the relevant administrative departments shall impose a fine of more than one time and less than three times the amount owed. Therefore, if the company fails to pay social security fees, it will not only be subject to administrative punishment, but also face legal proceedings and reputation losses.

Third, it affects the company's credit and financing ability.

Failure to pay social security fees will also affect the company's credit rating and financing ability. Financial institutions and investors will consider the social security payment of the company when evaluating the company's credit. If the company fails to pay social security fees, its credit rating will be lowered, which will further affect the company's financing ability and business development.

Fourth, damage the company's image and staff morale.

The company's failure to pay social security fees will also damage the company's image and employee morale. Employees will think that the company does not attach importance to employee welfare and rights protection, thus reducing the sense of trust and belonging to the company. At the same time, this kind of behavior will also attract the attention and criticism of public opinion and damage the reputation and image of the company.

To sum up:

The company's failure to pay social security fees will not only affect the protection of employees' rights and interests, but also face multiple adverse consequences such as legal sanctions, declining credit rating, limited financing ability, and damage to the company's image and employee morale. Therefore, the company should strictly abide by relevant laws and regulations, pay social security fees in full and on time, ensure the protection of employees' rights and interests, and maintain the company's good image and reputation.

Legal basis:

People's Republic of China (PRC) social insurance law

Article 63 provides that:

If the employer fails to pay social insurance premiums in full and on time, the social insurance premium collection agency shall order it to pay or make up within a time limit.

If the employer fails to pay or repay the social insurance premium within the time limit, the social insurance premium collection agency may inquire about its deposit account in banks and other financial institutions; And can apply to the relevant administrative departments at or above the county level to make a decision on the allocation of social insurance premiums, and notify their bank or other financial institutions in writing to allocate social insurance premiums. If the balance of the employer's account is less than the social insurance premium that should be paid, the social insurance premium collection agency may require the employer to provide guarantee and sign a deferred payment agreement.

If the employer fails to pay the social insurance premium in full and fails to provide guarantee, the social insurance premium collection agency may apply to the people's court for sealing up, distraining and auctioning the property whose value is equivalent to the social insurance premium that should be paid, so as to offset the social insurance premium with the proceeds from the auction.

Article 86 provides that:

If the employer fails to pay the social insurance premium in full and on time, the social insurance premium collection agency shall order it to pay it within a time limit or make up for it, and from the date of default, an overdue fine of 5/10000 shall be added daily; Failing to pay within the time limit, the relevant administrative departments shall impose a fine of more than one time and less than three times the amount owed.