Payroll process in a simpler term refers to the process of distribution of salary to employees whether permanent or contractual or part-time. But other than distribution of salaries, various aspects that payroll process relates to are tracking staff leaves, staff remuneration, staff health insurance, deducting Income tax and many other compliances. Ineffectiveness of payroll process may result into staff dissatisfaction, attrition etc. and on the other hand if any compliance issue arises, then surely legal action from authority is unavoidable as the law relating to employees are taken very seriously in China. Thus, there are services for outsourcing payroll in China through which companies can get the assistance of professionals in managing their payroll processes.
What is the Payroll Process in China?
Payroll processing in China mainly consists of paying salary to employees, ensuring mandatory benefits (China Social Security System), Employee Income Tax Deduction, remuneration of annual bonus and overtime payment if any.
Social Security System in China consists of 5 insurances and a housing fund (only applicable to Chinese employees). The employer has to contribute to the Social Security which consists of Pension Funds, Medical Insurance, Industrial Injury Insurance, Unemployment Insurance and Maternity Insurance. For each benefit, the employee and employer contribution rates and base differ as per the local jurisdiction and may change annually or as per reforms if any. What makes it further complicated is that the contribution rates for social insurance and housing fund are updated every year and change according to city jurisdiction. This makes compliance a big challenge for foreign companies or SME business while handling their employee payroll. Thus outsourcing your payroll to a payroll management company like Galaxy Group, saves the extra time, efforts, and capital that is spent on meeting these compliances.
Benefits of Outsourcing Payroll in China
International enterprises or SME often find difficulties in handling documentation in China. The government administration for social insurance, income tax, residence permit, work permit, housing fund deal with a lot of documentation and paperwork which often is in the local language. The policies and procedures are mandatory to be complied as per the rules set by the administration. With Galaxy Group by your side, the process of acquiring certain licenses and permits become easy and less challenging. We liaison with necessary government departments to take care of all the payroll related legalities and statutory compliance.
At Galaxy Group with over 20 years of experience and network of 80 consultants
in outsource payroll service and lodgement services, we partner with leading payroll and employment platforms which allows us to find the best cost-effective solution for each client whether a big foreign enterprise or an SME, as per their requirements. Our services are extended all over China, Hong Kong, Macau and Taiwan.
Our reliable and highly qualified team ensures:
- Hassle-free and smooth payroll documentation
- Disbursement and management right from attendance maintenance to salary payout, and
- Handling local compliances which take away your headache and also reduces your overhead
This allows you to focus on what you do best- your core business operation and its expansion in the market.