China Employer of Record (EOR)
Outsource your Employment in China
Hire employees in China without the need for a local entity. Our EOR service covers all aspects of compliance, payroll & benefits, workers’ compensation, and recruitment assistance.
HROne is the legal employer for your staff in China, managing all HR-related responsibilities. We are a certified employment and manpower outsourcing agency in China.
A solution for businesses looking to explore the Chinese market, manage local business relationships, or maintain a team in China without establishing a formal entity.
This approach is characterized by its cost-effectiveness, flexibility, and minimized risk.
Employer of Record (EOR) Process
- Service contract signed.
- Business Consultant introduces the assigned account manager to the client.
- Account Manager gathers information & initiates payment notice.
- After payment, AM introduces policies and online payroll portal to the client.
- Onboarding documents set up:
- work calendar
- processes: monthly, year-end, on/off boarding
- templates: labor contract, payment notice, information exchange form, employee registration form
- other benefits, and salary structure
- Setting up client’s payroll policy & templates into HROne system
- HROne onboards first employee/s
- new employee signs private information authorization letter
- employee information collection
- HROne sends first payment notice including deposit to client
- client confirms and pays first payment notice to HROne
- HROne and new employee sign labor contract
- new employee’s information uploaded to HROne system
- social insurance, housing fund & bank account set up for new employee.
- new employee given access to online portal
- HROne communicates changes in government policies (if any)
- client communicates compensation changes with HROne (if any)
- HROne sends payment notice to client
- client confirms and pays payment notice
- salary paid to employee/s
- mandatory benefits and individual income tax paid for employees
- online portal updated
- client and HROne confirm work calendar for the coming year
- annual salary report including offboarded employees sent to client
- client confirms annual salary report
- HROne submits the updated report to the government
- government announces new policies
- HROne briefs government’s policies updates to client
- HROne implements updated policies into system
- HROne removes offboarded employees’ data upon request.
- client briefs termination reason to HROne
- HROne provides professional solution for the termination
- client confirms the solution
- HROne completes termination agreement or termination notice with employee
- HROne prepares and sends the notice of the possible severance payment to client
- client confirms and pays severance payment
- employee completes handover
- severance payment sent to employe
- termination certificate issued to employee
- benefits accounts of employee transferred & archived
- HROne confirms unsettled cases are closed
- HROne refunds deposit balance to client
What is an Employer of Record?
An Employer of Record (EOR) is a service provider that assumes the role of the legal employer for a company’s remote employees in the country of service.
The service goes by multiple names used interchangeably such as manpower outsourcing, employment outsourcing, staffing and PEO.
HROne’s EOR service enables overseas businesses to compliantly hire employees in China by outsourcing legal responsibilities associated with employment.
Understanding HROne's EOR Service
HROne’s Employer of Record (EOR) service, also known as employment outsourcing or employee leasing, involves HROne acting as the legal employer of personnel identified by our clients in China. While HROne assumes the legal and administrative responsibilities of employment, our clients retain direct management of these employees. This service allows HROne to share either partial or full employer liabilities with our clients in China, offering a harmonious blend of legal compliance and operational flexibility.
Is an EOR the same as PEO?
TLDR: Yes and no. All Employer of Record (EOR) are PEOs (Professional Employer Organizations), but not all PEOs are EORs.
An Employer of Record will play the “legal” role of “employer” on your behalf. With an Employer of Record, your compliance is outsourced to the service provider, meaning they are 100% accountable for the employee. Whereas a PEO does not typically take full responsibility for your employee.
HROne acts as an Employer of Record for client whom do not have legal entities in China, and as a PEO for clients who have a legal entity in China.
The best EOR service provider in China
Why HROne?
HROne has been doing EOR in China for 20 years. As a trusted provider of Employer of Record (EOR) services in China, we offer a comprehensive solution that simplifies the process of hiring and managing employees in compliance with local laws and regulations.
Eliminate Risk
Don’t let HR compliance issues jeopardize your business success in China. Safeguard your business from blacklisting risks by contacting HROne today to learn more about our Employer of Record service and how we can help you navigate the complex landscape of compliance in China.
Local Presence and Knowledge:
In-depth understanding of the local market dynamics, cultural nuances, and business practices.
China Payroll Portal
All of our clients have access to our in-house payroll portal for record keeping convenience.
Employer of record Cases
EOR as a Business Solution
Hiring a sourcing manager in China
Many companies are looking for experienced and bilingual sourcing managers in China that are well connected to suppliers in their industry. These professionals also handle QA & shipping out of China for their employers.
Hiring a sales representative in China
Many companies are looking for experienced and bilingual sales representatives to find potential buyers in China and pitch their products or services.
Supporting a client project in China
Companies engaged in long-term projects with clients in China often opt to hire a qualified local talent in China to get the work done as opposed to flying people to China or relocating employees to China. This is most common with construction engineers among others.
Pre-Entity Setup
For businesses planning to establish a presence in China, our EOR service is invaluable. It enables the deployment of a pre-opening team to oversee the entity setup process, conduct market research, and initiate other preparatory activities.
Relationship Management
Ideal for companies that require a small local team to manage business relationships within China, such as sourcing operations or software development, without the necessity of establishing a Chinese entity.
Post-Entity Closure Operations
After closing a Chinese entity, businesses can continue to maintain a small team through our EOR service to manage any remaining business engagements.
Company restructuring
Companies that go through mass layoffs, closures or restructuring in China oftentimes use HROne's Employer of Record services to retain essential employees employed in China after closing the company or choose to outsource their labour administration to lighten overhead costs.
Hiring as a Rep Office
Representative offices may only hire up to 10 employees. However, even these employees cannot be hired in-house and their employment must be outsourced to a local EOR service provider.
Testing the market
Explore the Chinese market without taking on the costs and risks of setting up an entity. We can hire employees for you so you can evaluate the readiness of the Chinese market without making a substantial investment.
Reimbursement for Outsourced Employees
Expense Claim Solutions at HROne
Solution #1: Global Reimbursement
Clients engage with our global partner to facilitate reimbursement payments. Upon signing a new service contract, HROne oversees the bill collection process. Reimbursement applications are streamlined to exclusively accommodate transactions in US dollars, with strict adherence to a monthly cap of USD 5000 per individual.
Pros:
- Exemption from VAT
- Flexibility to client-specific reimbursement
Cons:
- 10% service fee, or a minimum of USD $100.
Solution #2: Integrated Reimbursement and Salary Structure
This solution integrates reimbursements with regular salary disbursements, providing clients the option to absorb individual tax obligations. While this approach alleviates service fees associated with expense claims, employees may incur higher Individual Income Tax (IIT) burdens.
Pros:
- No service fees
Cons:
- Higher IIT due to inflated salary.
Frequently Asked Questions
Payroll & mandatory benefits are included in our China Employer of Record and our PEO services.
In many countries, PEO and EOR are the same thing and can be interchanged. However in countries such as China and the USA, PEO and EOR refer to different services:
With Employer of Record (EOR), the service provider takes on the responsibility & liability of the employer since the client does not have a legal entity in the country of interest.
With Professional Employment Organization (PEO), the service provider manages hiring, employment and payroll, but does not take on the responsibility or liability of the employer since the client has a legal entity in the country of interest.
The 13th month bonus in China refers to a bonus equal to one month’s salary that is usually paid at the onset of Chinese New Year.
This 13th month bonus is not mandatory unless explicitly stated in the labor contract upon signing. A 13th month bonus depends on the company’s performance as well as the employee’s performance.
It is possible for employees to receive an even higher bonus (14th or even 15th month bonus) depending on these factors.
Employees in China are entitled to annual leave days based on their work experience.
After working for their employer for 1 year. Employees who have worked less than 10 years are entitled to 5 days paid annual leave.
Employees who have between 10 and 20 years of experience are entitled to 10 days paid annual leave.
Employees with over 20 years of experience are entitled to 15 days of paid annal leave.
Using an Employer of Record/PEO service is often regarded as the modern approach to expanding into China. As long as you do not need to invoice in China, this is a perfect solution for foreign SMEs that want to start their business here. With an employer of record, you can legally hire and manager your team in China, avoiding the time and money required to set up a company.
HROne, the Employer of Record, is legally responsible for your staff during their term of employment in China.
We can hire a local Chinese employee in as little as one day!
Your staff members can be employed and located anywhere in China. Their employment status will be recorded by the local bureau according to their location.
Not necessarily. Staff members can work remotely from home or another location. However, we offer office space rentals upon request.
Yes, our Employer of Record solution can be used to hire both local and foreign staff.
Individual income taxes In China are based on a progressive tax brackets rate:
| Bracket | Annual Taxable Income (RMB) | Tax Rate (%) | Quick Deduction |
| 1 | No more than 36,000 | 3 | 0 |
| 2 | Between 36,000 and 144,000 | 10 | 2,520 |
| 3 | Between 144,000 and 300,000 | 20 | 16,920 |
| 4 | Between 300,000 and 420,000 | 25 | 31,920 |
| 5 | Between 420,000 and 660,000 | 30 | 52,920 |
| 6 | Between 660,000 and 960,000 | 35 | 85,920 |
| 7 | More than 960,000 | 45 | 181,920 |
Social benefits in China are divided into two categories:
- Five mandatory social insurances – These include pension insurance, medical insurance, unemployment insurance, work-related injury insurance, and maternity insurance.
- Housing fund – The purpose of this is to allow employees to save money to buy a house in China.