Why don't self-employed people pay social security?

Some people misunderstand the new social security policy. In fact, whether the new social security policy is introduced or not, restaurant owners must buy social security for their employees, which was clearly stipulated in the previous laws.

1, it is compulsory to pay social security for employees, but self-employed individuals in China generally do not pay it.

According to the relevant provisions of the Social Insurance Law and the Labor Contract Law, employers and workers must participate in social insurance and pay social insurance premiums according to law. It is the legal obligation of the employer to participate in social insurance and pay social insurance premiums for workers according to law. Employers and employees cannot change or waive this obligation by agreement. Of course, employers also include individual industrial and commercial households.

Only China's awareness in this respect is not strong. Over time, even with the introduction of relevant laws and regulations, many self-employed people don't know about it, or even pay their employees directly. No matter restaurants or other kinds of individual shops, most of them are husband-and-wife shops, or employ 1~2 workers, and the scale is small. Most operators don't understand social security, thinking that only paying wages is enough.

2. Employees don't know or even dare to safeguard social security rights and interests, and self-employed individuals may find it difficult to support social security expenses.

For migrant workers, they don't know that they have this employee's rights and interests, and they feel that it is good to have a stable job. Even if I know, I dare not mention it to the employer. After all, I am the "weak side". As everyone knows, it's almost everywhere. It can be said that not paying social security has become a "significant feature" of the self-employed industry.

However, on the other hand, self-employed shops have small profits and can't make much money. If we have to pay social security to employees, the operating cost will definitely increase greatly. It is estimated that many stores can't open, so this is a very difficult problem.

3. Enterprises fail to pay social security truthfully, and now they are strictly collected by tax authorities.

Let me talk about the new social security policy. This means that in the past, personal income tax and social security fees were collected by the tax and social security departments respectively, and now they are collected by the tax department. So, what impact will this bring?

To put it simply, in the past, individual taxes were declared by the unit according to the actual wages of employees, but social security expenses were generally not truthfully declared-when the unit declared the social security payment base to the social security department, it was often paid according to the lower limit of the local social insurance payment standard. The White Paper on Social Security of Enterprises in China 20 17 shows that in 20 17, only 24. 1% of enterprises paid social security according to the full salary, 22.9% paid social security according to the minimum amount, and 22.9% paid it by themselves.1/kloc-

Different from calculating individual taxes based on wages, social insurance premiums are calculated within a range of average social wages, and social insurance premiums will have a payment range. Most employers (enterprises) will pay according to the "minimum standard". The author found a map of paying social insurance premiums in Guangzhou for your reference.

However, after the introduction of the new social security policy, the tax authorities have truthfully grasped the employment situation of employers, and employers can only pay social security according to the actual wages of employees, and cannot default on the social security fees of employees, otherwise they will bear illegal consequences.

If you want to pay social security for your employees, it should be determined directly according to the social security payment base range of your city. The specific base and social security payment ratio suggest that you consult the local social security department.