Forensic Inspection Methods for Identifying Unauthorized Factory Displacement
Forensic physical inspection, utility telemetry, and tax cross-matching identify unauthorized factory displacement before quality failures land on invoices.
Social Security Audit
Meaning
Statutory labor inspections verify that an employer has registered all eligible staff and paid the required insurance contributions. A social security audit conducted by the local Human Resources and Social Security Bureau examines the payroll against the registration records for pension, medical, maternity and unemployment insurance. It ensures that the company complies with the Social Insurance Law of the People’s Republic of China.
Employer Obligation
Companies must pay contributions based on the actual wages of their employees. During a social security audit, the inspector reviews bank transfer records to confirm that the amounts deducted from the workers match the amounts sent to the state funds. This excludes the use of the local minimum wage as a calculation base and prevents the underreporting of salary data.
Contribution Check
Payment gaps often occur when a factory uses temporary labor or third party agencies. The audit identifies workers who are present on the shop floor but missing from the social insurance rolls. This finding forces the employer to make back payments and pay late fees calculated from the date the payment was originally due.
Legal Settlement
Failure to pass the regulatory check leads to administrative penalties and a lower social credit score for the enterprise.