Study On Legal Issues Of China’s Social Insurance Audit

The social insurance system is the great cause which is beneficial to later generations, it is related to whether the old can live a prosperous and contented life or not, whether the society can be in long term stability and peace, reflecting the superiority of the social system. After over 20-year reform and development, the social insurance system of our country has been improving, achieving the remarkable results. However, in many parts, due to the imperfect legal basis of collection, unclear subject qualification and disunity in the punishment standards, resulting in no statutes to apply in the fund collection of social insurance and punishment, which seriously restrict the further development of social insurance system.Strengthening the social insurance audit is not only an important measure to safeguard the security of fund and maintain the effective, coordinated and sustainable development of social insurance norms, but also it is an important means to promote the construction of social insurance credit system and realize the equality of rights and obligations of the concept of social insurance. Along with the accelerating pace of the construction of social security system covering both urban and rural residents, the importance of audit is becoming more and more prominent.Firstly, from the perspective of audit legislation, the current laws and regulations about social audit legislation in China are not sound, the legislation process in slow, and the authority is insufficient. The administrative laws and regulations which are formulated and issued to standardize the social auditing and legislation are just Provisional Regulations on Collection and Payment of Social Insurance Premiums issued and implemented by the State Council in 1999 and Measures for the Audit of Social Insurances formulated by Ministry of Labor and Social Security of the People’s Republic of China in 2003, the level of legal system for social insurance fund supervision is very low and it takes no difficulty to image the authority. Furthermore, the social insurance agency organizations are established not based on the legal rules but on the orders of Ministry of Labor and Social Security of the People’s Republic of China. Compared with the foreign legislation, its authority is obviously insufficient. Secondly, in terms of audit enforcement, our current laws don’t expressly define the subject qualification and responsibilities and authorities of the social insurance audit behaviors. Though Social Insurance Law of the People’s Republic of China is the basic law to adjust the social insurance relations, there is no explicit stipulation for the responsibilities and authorities of the agency organizations. Overlapping functions between the social insurance agency organizations and labor security administrative departments, unclear powers and responsibilities and failure to implement punishment in the audit enforcement still exist. Thirdly, the audited objects have faint consciousness of laws and regulations, tax evasion occur frequently, there are many labor disputes, and severe loss of social insurance funds. Since our country has a late start in the social insurance system, the citizens in our country don’t have sufficient understanding of social insurance system, and cannot safeguard their rights due to their faint legal consciousness. In addition, some unscrupulous enterprises, in order to save costs, conceal or underreport the number of employees in recruiting, which damages the employees’rights and interests and cause the increase of labor disputes year by year.At present, China has stepped into the aging society. The reform and development of social insurance system are encountered with larger opportunities and challenges, but the loopholes and defects at the level of social insurance audit laws. Hence, the paper discusses the social insurance audit behaviors at the legal level, defines the functions and responsibilities of social insurance audit by providing higher-level, more standard and more efficient legal grounds, punishes the behaviors of falsely claiming treatment, faking bills and tax evasion, etc., by strict and standard audit enforcement, and finally makes the social insurance audit be one important means for the reform and development of our country’s social insurance system.