Why don't small companies pay social security?

The first possibility is that some enterprises enjoy the national social security reduction and exemption policy, and the unit does not pay social security, but this part of the social security amount of the unit is given the corresponding reduction and exemption policy by the state. The second possibility is that some enterprises will buy insurance for them in order to avoid a lot of friction between employees and enterprises, that is to say, the company that buys insurance and signs labor contracts for them is another human resources company. The third possibility is that some enterprises do not pay social security to their employees, but they will give them corresponding subsidies, which can be regarded as some compensation for welfare, but this is actually an illegal act. Many enterprises are actually very concerned about the relevant documents issued by Ministry of Human Resources and Social Security, especially the social security. At present, the state will exempt three social insurances for small and medium-sized enterprises. This means that the company can still pay social security for employees without spending a penny, because this part of the company's amount is subsidized by the financial department to some extent. In fact, the amount of social security that employees really get has not changed, but the company has paid less. It is equivalent to the fact that enterprises have not paid social security, so there will be such a statement. Some enterprises are reluctant to buy social security for their employees for the following reasons. Maybe they don't think employees will stay in the enterprise for long. Secondly, they want to save a lot of money; In addition, they also believe that employees can be silenced by subsidies. But this is not the case. It is illegal not to pay social insurance to employees, even if the company wants to give employees some compensation, it will have no effect. If employees go to relevant departments to report the enterprise in the future, the enterprise will also be punished.

Legal basis: Article 58 of People's Republic of China (PRC) Social Insurance Law. The employing unit shall handle social insurance registration for employees within 30 days from the date of employment. If the social insurance has not been registered, the social insurance agency shall verify the social insurance premium it should pay. Employees-free individual industrial and commercial households who voluntarily participate in social insurance, part-time employees who do not participate in social insurance in the employing unit and other flexible employees shall apply to the social insurance agency for social insurance registration. The state establishes a national unified personal social security number. Personal social security number is a citizen's identity number.