Employment Outsourcing (EOR)
Hire, pay & manage employees anywhere in China, with or without a company.
Hire in China with our Employment Outsourcing (EOR) service
With our Employment Outsourcing (Employer of Record) services in China, we manage your employment, payroll, tax, expense reimbursement and mandatory benefits obligations, whether you have a company or not. This allows your company to get into the market faster, in compliance and with reduced costs.
Why choose our Employment Outsourcing service in China
A PEO (Professional Employer Organization) is a type of HR outsourcing service known as co-employment. The PEO performs various employee administration tasks, such as payroll and tax filing, mandatory benefits administration and ensuring compliance on behalf of a company.
PEO or EOR?
An EOR (Employer of Record) is an employment service that helps companies legally hire employees in other countries without establishing a local entity. The EOR acts as the legal employer and manage employees' payroll, taxes, benefits, ensuring compliance and tax regulations.
Employment Outsourcing solutions in China
How to use a Employer of Record
Managing your employee's benefits in China
Is an Employer of Record the same as PEO?
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.
Employer of Record Service Cycle
How Employer of Record in China works
1. Client Onboarding
Collection of client’s information and introduction to HROne’s policies, procedures and online portal. Work calendar, processes, templates, benefits & salary structures confirmed and loaded into the payroll system.
2. Employees Onboarding
New employee signs private information authorization letter. HROne collects required material. First payment (including deposit) invoiced & paid. HROne and new employee sign a labor contract.
New employee is loaded into the payroll system. Social insurance account, housing fund account & bank accounts are imported into system.
3. Monthly Processing
Payroll information and salary changes (if any). Monthly invoice generated & settled. HROne transfers employee salaries & updates online payroll portal.
Social insurances, housing fund and income tax paid. Employee pay-slip and notification sent out.
4. Year End Processing
Work calendar for the coming year confirmed. Annual salary report prepared, confirmed and reported to the government HR authorities.
5. Employee Departure
Termination documents completed with terminated employee. Invoice of the possible severance payment issued to client.
Upon handover completion, HROne releases severance pay & issues termination certificate. Unsettled cases are closed and client deposit returned.
6. End of Service
Handover of accounts, materials and information. Off-boarding employees begins.
Last invoice including historical balance, prepared and paid. Employees off-boarded. Accounts and material handed over to client. Unsettled cases are closed and client deposit returned.
HR in China, made easy.
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.