Payroll and Mandatory Contributions/PEO
For companies that have a Chinese legal entity, but don’t want to deal with complex payroll operations. We become your PEO and take care of your payroll, mandatory benefits, and related compliance.
Outsource your payroll in China
The Payroll & Mandatory Contribution service is normally named Professional Employer Organization (PEO). In different countries, the service coverage of PEO is different. In China, the PEO service covers payroll calculation and processing, mandatory contribution (social insurance, housing fund, IIT, disability fund, union fee) handling.
In China, payroll calculation is not difficult, but the related policies are complex. Besides the national policies, each city has its own policies that are involved in payroll calculation and processing (China has 670+ cities). Even if you just run your business in one city, there are still at least 160+ policies that may impact payroll calculation and processing. So, working with a professional payroll company is a good option if you don’t want to invest a lot in payroll capability.
The mandatory contribution in China includes pension insurance, medical insurance, maternity insurance, unemployment insurance, work-related injury insurance (together, they are called social insurance), housing fund, individual income tax, disability fund, union fee (not 100% but almost mandatory).
Our PEO service in China covers payroll calculation and processing, policies updates and maintenance, mandatory contribution handling inclusive of employee onboard/offboard formalities, online portal.
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What is a PEO?
A Professional Employment Organization (PEO) is a company that provides services under which an employer can delegate employee management tasks such as payroll, employee benefits, and workers’ compensation.
One of the primary reasons many foreign businesses choose to use PEOs is to legally manage payroll for employees in China, without risking issues and complications with local authorities.
The liability of employment is shared between PEO and the company client. Practically, shared responsibility means the elimination of risk someone might face because of the Chinese laws & regulations amendments.
Using a PEO in China has important benefits for companies:
- Faster growth – The staff has to just focus on high-value activities to help the company grow.
- Reduced costs – Using a PEO allows the company to skip expensive and time-consuming processes.
- Full compliance – A PEO handles payroll processes and can guarantee full compliance with the law.
Ready to outsource your payroll in China?
How do we guarantee your payroll compliance in China?
Payroll compliance means adhering to all regulations that govern how employees are paid. Employers who break any of these regulations may face penalties that could hurt their bottom line or even force them to close their business.
Our professional team and our standardized procedures will make sure that your payroll in China will run smoothly, so to avoid compliance issues with the local governments.
In particular, we will help you to:
- Manage your employee’s monthly payroll
- Declare the individual income tax
- Contribute your employee’s mandatory benefits to local authorities
- Maintain your payroll data with our online portal
- Stay updated on policy and regulations