Payroll Outsourcing in Hong Kong
Hong Kong Payroll Service
No matter where you need it, our team of local experts at GlobalPEO will manage all of your international 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 Hong Kong a breeze.
Learn how Hong Kong’s 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 Hong Kong, 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 Hong Kong.
Hong Kong Payroll Outsourcing Benefits
Hong Kong's Taxation Laws & Regulations
The majority of employers and employees operating in Hong Kong are legally required to contribute monthly to the employee’s Mandatory Provident Fund (MPF). The Hong Kong government requires a minimum contribution of 5%, with additional supplementary benefits being negotiated as employee benefits during the initial employment contract agreement.
Payroll Options in Hong Kong
Depending on the size of your company, you can choose between a two primary 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 on their own. In order to do this, you will be required to set up a subsidiary, register your business in Hong Kong, 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 make things easy by handling all of the administrative and HR duties with the employee. This frees up your business and foreign employees to focus all of your communications on the work itself.
How To Set Up Payroll In Hong Kong
The first thing you will need to do in order to set up payroll services in Hong Kong is to register your business with the IRD within the first 30 days of the employee’s start date. You will also be required to submit an annual employer’s form as well as one of the following:
IR566 – This form is required in order to report all newly hired employees and must be submitted within 90 days of the worker beginning his or her employment.
IR56F – You must complete this form to report the termination of an employee working in Hong Kong. It must also be filed within 30 days of the employee’s final working shift.
IR56G: This form is required to report a foreign employee who is leaving Hong Kong for an extended period of time.
You will also be required to set up your MPF scheme, which is the primary investment avenue for your employee’s retirement funds.
Entitlement & Termination Terms For Hong Kong Payroll
Generally, both employers and employees are expected to provide 1 month’s notice for impending termination or resignation. During a probationary period, there is no required notice that must be given from either side within the first month. In the subsequent months following the initial month of probation, a 7 day notice period is mandatory.
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 Hong Kong peo 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 & EOR, Global Payroll and International Recruiting we deliver our exceptional services at an affordable price.