Beijing, Aug. 14 -- China has stepped up scrutiny of companies' social security payments by increasing reporting requirements in several regions and using tax and payroll data to identify discrepancies in employees' reported wages, according to a report by The Epoch Times.

The tighter enforcement comes amid mounting fiscal pressures, weak consumer demand, declining business activity and rising local government debt, conditions that have left many Chinese companies struggling with cash flow, the report said.

According to The Epoch Times, several individuals in China spoke about the issue on condition of anonymity, citing concerns over possible repercussions.

A factory manager at a garment-processing plant in Tianjin, identified by the s...