Why don't some companies pay social security?

Some companies do not pay social security, on the one hand, it is related to the nature of labor, on the other hand, the company really wants to save costs. The profitability of the company is not optimistic, so it is inevitable to maintain normal operation and have no financial ability to pay social insurance premiums for employees. However, it is illegal for a company not to buy social insurance for its employees, and the company should pay social insurance fees for employees on time according to law.

According to the national regulations, the following five types of people with work nature do not need to pay social security:

1. retirees. 2. Part-time staff. 3. Labor dispatch. 4. Intern. 5. Self-operated outsourcing business.

Therefore, many companies will sign outsourcing agreements with employees, which is equivalent to outsourcing part of their business to employees, and employees will become their suppliers, so naturally they don't have to pay social security.

legal ground

Article 63 If an 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, and the proceeds from the auction will be used to offset the social insurance premium.