Shenzhen Payroll Service
Hotline: 86-755-82147392 Email：info@citilinkia.com
If you are familiar with global payroll than you know that China is a country that is a bit of a muddle when it comes to determining what can be done by foreign businesses and how it can be accomplished. It took me some time, but I believe I have started to bring some clarity to this muddle. The key is to understand to role that Human Resource Outsourcing plays in China. HR Outsourcing is one of the most common services used by foreign enterprises, as foreign firms without independent legal entities need to hire a local workforce through Chinese HRO providers, as per government regulation. China has sought to force foreign companies seeking to hire in China to form a company in China; those who do not must go through an HRO.
The Government requires transparency regarding the HR functions and thus HROs meet these requirements.
HR outsourcing provider firms specialize in employment and dismissal, payroll and benefits administration, personal income tax, personnel file management, and labor dispute resolution.
As of 2008, there has been tremendous growth in HROs; partly a result of the enactment of the new Labour Contract Law (LCL) from 1st January 2008. LCL provides a much tighter framework of employment relationship than previous labor regulations, including job security and the provision of social insurance benefits. It also gives employees more power to seek justice through legal channels when employers violate labor laws.
HR Outsourcing Service includes:
Employee Relation Service Local staff outsourcing, employment & dismissal, certificate, contract, personnel file, legal consulting concerning labor affairs
Benefit Service Social insurance and housing fund, commercial insurance, corporate health insurance and annuity programs, supplemental benefits
Recruitment Service Headhunting service, talent recommendation, recruitment process outsourcing, background checking, campus recruitment, talent evaluation
Finance & Tax Service payroll, accounts payable, finance and accounting, tax outsourcing, and consulting services, Business Service ,IT System Service ,Staff Training Service
Who is responsible for what?
If the company has a REP office or a PEO they must “dispatch” their employees to the HRO. Thus, the HRO becomes the employer of record. The HRO then signs contracts with each of the client’s employees. All filings and payments are done under the name of the HRO as well as any disputes/queries/issues are dealt through the HRO. This takes a lot of liability off the hands of the client.
Those that have WFOEs and FICEs have a choice. They can dispatch their employees to an HRO and thus decreasing their liability when it comes to administrating payment of nets and taxes as well as dealing with the employee relations and benefit administration. Additionally, they can outsource the payroll calculations, payments and filings to an HRO. Lastly, they can handle it all themselves.
Of course, there are a lot more complexities than those mentioned in this blog, however it is a start to attaining a bit of a clearer picture.
Contact Us
For further queries, please do not hesitate to contact ATAHK at anytime, anywhere by simply calling China hotline at 86-755-82148419, 86-755-82143512, or emailing to info@citilinkia.com