What are the risks for the company to pay social security?

There are policy risks, reputation risks and use risks. Policy risk refers to the fact that there is no real labor relationship between employees and the employing units affiliated with agents. When applying for social insurance benefits from social security agencies, it will be considered as insurance fraud. Will be fined more than two times and less than five times the amount of fraud.

Employers pay social security legal risks for non-employees

Judging from the employment management of employers, it is risky. Because the employer pays social insurance premiums to non-employees, it means that there is a superficial labor relationship with these people. These people have the "right" to ask the unit to pay wages and even ask for economic compensation, so the employer should be cautious. This kind of risk generally occurs when non-employees demand to confirm the existence of labor relations with the employer, and non-employees prove the existence of labor relations by providing social security payment records or social security payment vouchers. If the employer's awareness of prevention is not strong and the measures are not in place, it is easy for people to take advantage of the loopholes, thus separating their wives and children.

Regarding the only social security payment relationship between the unit and others, can it be considered that there is a labor relationship?

According to the relevant provisions of the labor contract, the employer shall establish labor relations with the laborer from the date of employment. In other words, the establishment of labor relations is not based on the signing of written labor contracts, but on the existence of actual employment behavior. In practice, the employer has not signed a labor contract with the employee, but there are employment behaviors, or there are many cases where the written labor contract between the two parties has not been renewed but continues to be employed. In reality, there are also cases where both parties have signed a written labor contract, and even the employer is responsible for keeping files for them and paying social security on their behalf, but there is no actual employment behavior. In this case, to judge whether there is a labor relationship between the two sides, we should start with the analysis of the essential characteristics of labor relations. That is, it is necessary to examine whether there is an agreement between the two parties to establish labor relations, whether one party accepts the command and management of the other party, whether one party engages in the labor arranged by the other party, and whether the labor provided by one party is an integral part of the business of the other party. However, handling employment registration procedures and paying social insurance premiums on their behalf are only reference factors, not decisive factors. Therefore, after examination, the two parties only have the relationship of handling employment registration formalities or paying social insurance premiums, and do not have the essential characteristics of labor relations, so it is not appropriate to easily determine that there is a labor relationship between the two parties.

To sum up, there are policy risks, reputation risks and use risks in the company's social security payment. Policy risk refers to the fact that there is no real labor relationship between employees and the employing units affiliated with agents. When applying for social insurance benefits from social security agencies, it will be considered as insurance fraud. Will be fined more than two times and less than five times the amount of fraud.

Legal basis:

Article 26 of People's Republic of China (PRC) Social Insurance Law

The basic medical insurance for employees, the new rural cooperative medical system and the basic medical insurance for urban residents shall be implemented in accordance with state regulations.

Article 27

Individuals who participate in the basic medical insurance for employees will not pay the basic medical insurance premium after retirement and enjoy the basic medical insurance benefits in accordance with the provisions of the state if they reach the statutory retirement age and the accumulated payment has reached the fixed number of years stipulated by the state; Those who have not reached the fixed number of years prescribed by the state may pay the fees to the fixed number of years prescribed by the state.

Article 28

Medical expenses that meet the basic medical insurance drug list, diagnosis and treatment items, medical service facilities standards and emergency rescue shall be paid by the basic medical insurance fund in accordance with state regulations.