- Overview: China
- Global PEO and payroll
- Global HR Compliance
- Work permit for hiring expats via PEO
- Expand without a company set up
- Contractor vs. employee: which is better?
Global PEO and Payroll in China
Getting your business up-and-running in China can be challenging, especially if you do not speak the native language. Establishing your own business entity in China is an option to be considered as you expand abroad. But before you invest valuable resources in setting up business in China, you should be fully aware of the risks involved.
Acumen’s Global PEO and Payroll solution was designed especially for companies like yours, to smooth the way for quick, easy and risk-free business operations in China, without having to establish a legal business entity.
Acumen International – Your Professional Employer Organization in China
Navigating the Chinese legal system and adhering to regulations governing employment and taxation can be challenging for businesses, especially if you are not a native Chinese speaker. Partnering with Acumen International as a global Professional Employer organization (PEO) provides you with the local knowledge and support you need to conduct business in China without concern for legal and compliance risks.
Whether you represent international client companies or you are taking your own business operations abroad, Acumen International’s Global PEO and payroll service allows you to hire and payroll local and expat employees in China. With Acumen in your corner, you can quickly and easily onboard and compensate your employees without risk of legal repercussions.
International Global Payroll and Taxation in China
Employment related taxes
There are specific rules for payroll and taxation in China, depending upon whether the company employs foreign nationals or local Chinese employees. The primary concerns for a foreign company that needs to comply with tax laws in China include: Individual income tax (IIT) for employees in China, social security costs, payroll tax, sales tax, withholding tax, business tax and permanent establishment concerns.
Foreign workers in China are taxed separately from Chinese citizens for income taxes, generally are liable for most social insurance contributions, and are exempt from many labor-related requirements. Multinational employers paying the salary and benefits of dispatched employees through home country payrolls fall under China’s corporate tax laws under certain circumstances.
Employees are subject to individual income tax on wages, salaries, bonuses and other employment-related income. An employer, as a withholding agent under the tax law, is liable for withholding the applicable taxes and paying the same to the competent tax authorities upon payment to its employees. In practice, an employer will file tax returns monthly on behalf of its employees, as the standard pay cycle is monthly.
13th salary in China
Many companies make a 13th month salary payment to their employees around Chinese New Year (not fixed).
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How Acumen’s International PEO and Payroll Service can Benefit Your Business in China
Compensating your local and expat workforce in China and closely adhering to Chinese taxation requirements can divert your attention and resources from activities that help your business grow. A reliable global employment solution like Acumen’s Global PEO and Payroll service can take a substantial burden off your shoulders so you can focus on running your company.
Outsourcing the administrative and compliance tasks involved in employee payroll is one approach, but we have a better solution. Acumen International offers a global PEO and payroll solution that goes beyond outsourcing. We hire and compensate your global workforce on your behalf, and take care of all the details of payroll while ensuring full compliance with Chinese labor and taxation laws.
It is important to note that Acumen does not provide international global payroll services as a standalone solution, but only as a part of our global PEO and Payroll solution.
Our comprehensive global PEO and payroll services are just some of the benefits of partnering with Acumen International. We make it easy for you to achieve your business goals in China by officially employing and compensating your best selected global talent – both locals and expats – without concerns for legal and compliance risks faced by global employers.
Disclaimer: Any of the above information is subject to changes imposed by Chinese laws. To get the latest updates on taxation in China and in 190 countries worldwide, contact Acumen’s team of global employment experts.