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.
