China Employee Leasing and PEO

Learn about Employment Solutions and Professional Employment Organizations (PEO) in China:

  • Definitions
  • Why use employee leasing/PEO
  • Potential advantages of using employee leasing/PEO
  • Who should use employee leasing/PEO?
  • Employee Leasing/PEO in China


Employee leasing refers to an arrangement in which a company’s staffs are employees of another company (such as HROne) who pays the employees and manages issues such as social insurance, individual income tax, and other HR related issues. The employees are then leased back to the original company, which manages their day-to-day tasks.

Professional Employment Organization (PEO) is a firm that specializes in providing a service under which an employer can delegate employee management tasks such as payroll, employee benefits and workers’ compensation. This is achieved via the PEO hiring a client company’s employee or potential employee before leasing the employee back to their client in China.

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Why use employee leasing / PEO?

One of the most daunting aspects facing many new or existing businesses is the management of payroll, benefits and other HR issues. Employee leasing effectively allows a business to delegate such issues to a PEO such as HROne. In such a situation HROne signs an employment contract with your employee in China. HROne would then lease the employee to your China business. Normally, there is a three-party agreement between the HR Agency, leased employee, and the foreign entity. The employee works on the direction of the business while HROne assumes the responsibilities related to the employee’s monthly payroll, individual income tax (IIT) and mandatory benefits, allowing business owners to focus on expanding and developing their enterprise in China market.


Our service package includes the following features

  • Monthly payroll

  • Visa application

  • Tax compliance

  • Benefits & allowances

  • Medical insurance

  • Renewal or termination


Potential advantages of using employee leasing/PEO

  • Allow the Representative Office or foreign companies who has no legal entity in China safely and legally hire employees in China, where a direct employment is not desired or feasible.
  • Ensure payroll compliance, minimizing potential risk and costly mistakes.
  • Enjoy the highest level of data security, stability, and data processing reliability.
  • Relieve the burden of handling complex processes.
  • Streamline your workflow and free up valuable in-house resources.
  • Access to in-depth HR expertise to handle HR issues.
  • Take advantage of an established relationship with a broad network of government departments.

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Who Should Use Employee Leasing /PEO?

Often referred to as talent dispatch, employee outsourcing or workforce dispatch, employee leasing allows businesses to streamline their HR process. This procedure is often favoured by small and medium sized enterprises who want to focus on their business, and not the administrative burdens behind it. It is also used by large enterprises who are setting up multiple offices or branches in varying jurisdictions.Wholly foreign-owned enterprises (WFOE’s)who have no legal entity in China can similarly benefit from employee leasing as the process allows the company to avoid an establishment process which is complex and time- consuming, with many approvals required by multiple government authorities in China.

Employment Services / PEO in China

Under Chinese law, the minimum employment term for an employee involving in the employee leasing process is 2 years. The service provider is required to hold licenses to be involved in employee leasing services in China. HROne holds such licenses. The employee leasing services offered by HROne offers a viable solution for businesses who wish to take advantage of the Chinese market but are discouraged by the idea of establishing and maintaining a workforce in China. Attempting to navigate the relevant regulations in relation to issues such as Social Insurance and the Housing Accumulation Fund can be a time consuming and tedious process. HROne boasts a thorough knowledge of employment practices and regulations in China and years of experience acting on behalf of both SME’s and Fortune500 companies. If you are considering expanding your business and establishing in the second largest economy in the world, HROne can relieve the burden associated with issues such as those previously mentioned, payroll, benefits and HR, allowing you to focus on more pressing matters, such as how to take advantage of an enormous market.

HROne’s Employee Leasing Package includes:

  • Employee Leasing ‘ employee signs employment contract with HROne and is leased to the client
  • Payroll processing, IIT service
  • Raw data collection and cleaning
  • Monthly salary calculation and delivering
  • Minimum wage policy updating
  • IIT calculation, deducting and submitting
  • Annual report for IIT
  • E-payslip
  • Employee payroll data maintenance
  • Social insurance and housing fund handling
  • Social insurance and housing fund related process management for new hires and quit employees

We also open the relevant accounts for new employees:

  • Monthly social insurance and housing fund calculation, deducting and contribution
  • Annual social insurance (e.g., disability insurance) calculation and contribution
  • Policy maintenance and updating
  • Individual social insurance and housing fund application supporting
  • Work-related-injury advisory
  • Commercial Insurance- supplementary health insurance
  • Labor dispute ‘ legal support in case of a labor dispute
  • Employees’ relationship management ‘ support to manage the relationship with your employees
  • Commercial Insurance ‘ Supplementary health insurance.

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