Payroll, Tax & Social Benefits
COMPANIES WITH A LEGAL ENTITY IN CHINA
We offer customizable China payroll solutions to foreign SMEs and start-ups operating in Mainland China. Our payroll & tax services effectively streamline your company’s payroll management.
Our payroll experts will compute your employees’ monthly salary in accordance with all relevant regional HR laws, taxation, and labor regulations. Furthermore, we declare your employees’ individual income taxes and contribute all employee social benefits to local authorities.
Your payroll administration will be efficiently and securely managed while saving your company’s time and resources.
Employment & Payroll Outsourcing
COMPANIES WITHOUT A LEGAL ENTITY IN CHINA
Foreign companies without a legal entity in China that planning to pay employees within the Chinese territory must engage employment outsourcing services, also known as Professional Employer Organization (PEO) services.
HROne’s PEO services allows foreign companies to hire employees in China while outsourcing all employment operations. Including the signature of a local contracts, payroll, tax and employee social benefits administration, allowances and benefits, and more.
All China Payroll Needs in One Service
Monthly payroll
Individual income tax declaration
Employee social benefits contribution
Yearly and monthly payroll reporting
Employee online portal for pay-slips review
Payroll data maintenance
Policy and regulatory updates
Work-related injury advisory
Fully Outsourced China Payroll Management
Payroll outsourcing advantages
- All employees’ payroll and tax are outsourced to HROne, enabling your workforce to save time and focus on core business functions.
- Avoid costs of establishing an internal HR department.
- Compliance with local laws and regulations is permanently ensured by HROne to provide a safe fiscal and tax environment for your business in China.
- Benefit from HROne’s strong relations with local authorities.
- Flexible and customizable services that adapt to any business size and payroll headcounts.
Procedure
- The client company drafts each of the employees’ labor conditions.
- Upon confirmation, HROne calculates the total cost of payroll, taxes and social benefits contributions.
- HROne issues an invoice to the client company with each employee’s detailed payroll cost estimation.
- On a monthly basis, upon client’s payment, HROne delivers the relevant salaries and pays all required taxes and social contributions to local authorities.
Social Benefits in China
Handling social security contributions can be challenging for foreign companies operating in China. Contribution rates and bases are adjusted every year and these vary according to the location.
China’s social security system is divided in two categories.
- The five mandatory social insurances, which include the pension, unemployment, work injury, maternity, and medical insurance.
- The Housing Fund ensures that employees save money to purchase housing in China. Both the employer and the employee contribute toward these mandatory benefits.
Both categories are contributed by the employer and employee.
HROne’s payroll outsourcing service includes the registration of your company and employees to the social security bureau as well as the calculation and contribution of these.
Frequently Asked Questions
HROne is the employer facing the Chinese government for all the tax and benefits situations regarding your employees. If we do not contribute on time and in full, we will have risks and problems, so we must make sure that everything is compliant. In this way, we can guarantee that you will not face any problems with the Chinese government. Since 2005, HROne we do not have any negative record in the Chinese government system regarding non-compliant contributions.
In China, there are 7 rates for individual income tax rates, and they depend on the annual taxable income. For every level, you can also use a quick deduction to reduce the amount of taxes to pay. These are the rates:
| Level | 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 |
The social benefits 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.
The cost to hire an employee varies from city to city in China, but when you decide to hire employees in China, you have to consider costs related mainly to the salary, social benefits, taxes, bonus, and this actually can vary every month for the employee. With our payroll service, you do not have to think about all the calculations, because we will do it for you and send you the total cost for the employee. You can also use our employee cost calculator to have a general idea of the costs involved.
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(this is applicable if the duration of the service is 12 months or more)
Fill-in the form below or contact us at info@hrone.com