Payroll Outsourcing in China

China Payroll Services

No matter where you need it, our team of local experts at GlobalPEO will manage all of your foreign payroll operations. We get it; coordinating payroll is challenging enough on its own, and can become a logistical nightmare once multiple languages, rules, and regulations are involved. 

We are proud to streamline the experience to guarantee compliance and make your global expansion into China a breeze.

Learn how China laws and regulations surrounding taxes will impact your hiring and payroll processes. 

Depending on the size of your business and your specific needs, GlobalPEO offers a variety of payroll solutions to make sure you’re covered with full compliance, no matter what. 

In order to set up payroll services in China, you will either need to set up a subsidiary of your own, or work with an International Payroll company like us here at GlobalPEO.

When setting up an employment contract in a foreign country, there are unique rules and regulations you must follow to ensure full compliance. Learn more about the specific terms that are required for all contracts in China. 

China Payroll Outsourcing Benefits

Simplified Payroll Solutions

We make managing payroll easy by handling all of the administrative and HR duties directly with the employee so you can focus all communication on the work itself. ​

Punctual Payment Delivery

From employee paychecks to severance and benefits, all payments are processed on-time and always delivered to your employees on the scheduled date.

Established Legal Presence

By having our own entity located in China, we have local HR gurus ready to ensure complete compliance with local legal, financial, and cultural regulations

China's Taxation Laws & Regulations

All Chinese employees are granted statutory benefits within the “five insurances” practice in China. These include health insurance, pension, worker’s compensation, maternity benefits, and unemployment insurance. However, additional benefits, such as housing, are predicated by the income tax bracket of the individual employee. 

China has a progressive income tax which ranges from 35% – 45% depending on the employee’s income

Payroll Options in China

Depending on the size of your company, you can choose between two primary China payroll options to find one that best fits your needs. 

Option 1 – Set Up Your Own Subsidiary

Large companies will sometimes decide to handle their foreign employee payroll process independently. To do this, you will be required to set up a subsidiary, register your business in China, and have a deep understanding of the country’s taxation, withholdings, benefits, and other local payroll conditions. 

Option 2 – Work With an International PEO

When you work with GlobalPEO, our Payroll solutions simplify things by handling all administrative and HR duties with the employee. This frees up your business and foreign employees to focus all communications on the work itself. 

How To Set Up Payroll In China

Before you can begin hiring foreign employees, you are legally required to either set up an entity in China or work with a China PEO  If you elect to do this on your own, you will need to allocate significant time, funds and additional resources to run payroll with full compliance with China rules and regulations. 

You will also need to set up a business bank account in China and process all transactions in Chinese Yuan.

Entitlement & Termination Terms For China Payroll

Terminating an employee in China must be supported by a strong cause for dismissal and clearly documented grievances leading up to the termination. The initial employment contract must contain an agreed upon probationary period that can last up to 6 months in length. 

The time requirements for submitting notice of termination vary widely by industry. Any employer terminating an employee of one month to two years tenure must provide at least a one week notice. Employees working for a company for over two years require notice of one week for each year of completed service up to 12 weeks of notice.

Employers have the option of including “payment in lieu of notice” in employee contracts which permit employers to pay employees instead of providing them with a notice of termination. This is common in Chinese business practice. 

From providing quick and effective payroll solutions to creating great relationships with your foreign employees, GlobalPEO gives you a top tier International Payroll service at a value unmatched in the industry. With services starting at just $400 per employee, your business can enjoy the benefits of having an expert payroll team without breaking the bank

Why Choose GlobalPEO?

Global expansion is a great step for your business – and now it’s easier than ever. Setting up your own entity in each country where you wish to operate can be expensive, complicated, and requires deep knowledge of the specific rules and regulations. Let GlobalPEO take care of everything. From International PEO & EORGlobal Payroll and International Recruiting  we deliver our exceptional services at an affordable price.