China Payroll Services

At Bradford Jacobs, we navigate the administration of the Chinese payroll system for you. We do the work, so you do not have to.

Chinese Payroll

Successful global expansion depends on making the right moves from day one. This is essential for foreign companies establishing a presence and operating payroll in China.

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Paying staff in China, either locals or foreigners, requires comprehensive knowledge of laws and regulations applying nationwide, in over 20 provinces, five autonomous regions plus municipalities and special administrative regions. Bradford Jacobs’ Professional Employer Organization (PEO) and Employer of Record (EOR) platforms provide complete answers to every question you will face before your move into the Chinese economy.

We aim to make business expansion easy. At Bradford Jacobs, we navigate the administration of the Chinese payroll system for you, and we also make the returns and associated payments for income tax and social security contributions directly from our payroll system to the local tax authorities. We do the work, so you do not have to. When expanding into a new country, you may encounter some challenges regarding payroll, but allow us to take the reins and answer any of your questions and concerns with our trusty guide on payroll for China.

  • Remote payroll: This option allows businesses to operate under a single payroll system, by adding employees in China to your parent company’s payroll. However, these employees must operate under different regulations, which is likely to cause problems.
  • Internal payroll: You may operate payroll for your subsidiary, especially if you are committed to growing your company’s presence in China. However, this does require hiring dedicated HR staff who understand Chinese employment and compliance laws.
  • China payroll processing company: If you are considering outsourcing, then working with a Chinese payroll company will help in processing your payroll – but not when it comes to compliance.
  • China payroll outsourcing: However, there is another option available that solves both concerns – by working with Bradford Jacobs. We can handle payroll and compliance for all your employees in China. We take the administrative stress off your shoulders so you can focus on what you do best.

Companies expanding their operations into China open up a wealth of opportunities for expansion throughout Asia and further into the Pacific Rim nations – but challenges come alongside the potential benefits. Payroll management is among those challenges, whether your company is considering moving employees abroad or hiring new staff in-country. Employment laws, payroll regulations and income tax regulations are areas where you cannot afford mistakes.

Running payroll in China requires an in-depth knowledge of employment, payroll, and taxation laws – and keeping up to date with frequent changes. As part of our service, we file returns and associated payments for wages tax and social security contributions directly from our payroll system to the relevant authorities. Paying staff in China, either locals or foreigners, requires comprehensive knowledge of laws and regulations applying in over 20 provinces, five autonomous regions plus municipalities and special administrative regions.

Outsourcing your payroll in China to Bradford Jacobs will see us dealing with the following:

  • Registering with the State Taxation Administration (STA).
  • Registering with the local Social Insurance Bureau and Housing Fund Bureau to activate accounts for your employees.
  • Advise on creating employment contracts.
  • Investigating for special expatriate status and researching any tax-free allowances or double tax treaties.
  • Reconciling federal, provincial, territorial, and municipal taxes to assess for refunds or extra payments.
  • Calculating employees’ monthly salary payments.
  • Creating payment schedules for wages, issuing pay slips, and remitting taxes and social security payments to the authorities.
  • Filing annual employee tax returns between March 1 and June 30 of the following year, in Chinese and with accounts in local currency, the yuan.
  • Completing personal income tax returns for employees, if required.
  • Creating and submitting your company’s annual accounts and year-end statements.

The above checklist highlights why the vast percentage of foreign companies expanding into China’s strictly regulated business environment hand their payroll to EOR providers such as Bradford Jacobs. By outsourcing payroll your company complies with tax and employment regulations without risking sanctions or financial penalties for late or incomplete filing. You focus on your goals and expansion, free of any concerns over payroll. Questions? We have the answers.

Foreign companies intending to run payroll by establishing a subsidiary or branch in China face stringent regulations covering employment, tax filing, social insurance contributions and much more. Filing accounts is complicated as they must be presented in yuan (CNY) as used in the financial and international economic system, as well as in renminbi (RMB), which has been the unit of exchange within China since 1949.

Requirements include:

  • Before registering, select a unique company name and designate a finance officer.
  • Decide on a business structure, with Wholly Foreign-Owned Enterprises being the typical choice.
  • Obtain approval from the Ministry of Commerce and State Administration of Industry and Commerce, to receive a business license. Branch offices, which remain wholly owned by the parent company, need not register with the Ministry of Commerce.
  • Registering with the State Taxation Administration (STA).
  • Registering with the relevant local Social Insurance Bureau and Housing Fund Bureau.
  • Registering employees’ contracts with the tax and social security authorities.
  • Open a business bank account.
  • If employing foreigners, accounts need to be registered with the Services System for Foreigners Working in China along with applications for Foreigner’s Work Permit and the Notification Letter prior to employees applying for their work visa.

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