Professional Employer Organization
As one of the major economies of the world, China is a steppingstone to globalization. However, expanding into China is often a long-term project since the laws and regulations can be comprehensive without local presence and knowledge. Our PEO service makes your plans in China more accessible and helps you expand into this major market within days. The Chinese economy is competitive and market oriented. Their focus on the mining industry resulted in becoming a leader in manufacturing and above that, China is responsible for producing half of the world’s steel.
The production of electronics in China has led to an incredible increase in export to the EU (European Union) and many other countries around the world. With an economy growing with an average of 10 percent annually and a massive consumer market, China is a breeding nest for opportunities.
What is a Professional Employer Organization (PEO) for China?
A PEO offers you a launchpad for global expansion. By using a PEO in China there is no need to set-up a legal entity including all tax registrations and complicated paperwork, and you can start doing business within days. At Bradford Jacobs, we made it our goal to gain expert inside knowledge on Chinese payroll, taxes, labor laws, and other local regulations. By utilizing our sources, you can start your global expansion hassle-free and at a low cost. We can provide specific support for payroll, taxation, Human Resources, and compliance issues as you expand your operations and enforce your workforce. If you are ready to start your global success with us, you can add new international talent to your company within days. We have the connections and network to locate talents that meet your needs and wishes on all levels. Without the need for you to create a Chinese subsidiary, your new employee can benefit your business in China in days instead of months.
Needless to say, but incredibly important: we ensure your company complies with all regulations and laws, areas in which can incur severe penalties would you fail to adhere. Your chosen candidate is hired through our agencies in China and remains under your day-to-day control.
How a Professional Employer Organization (PEO) works in China
Your business is not like any other and we get that. Your international plans require solutions that match with these plans, your goals, and your business strategy. Therefore, our PEO services provide a consultative approach and a tailor-made solution because we know one size does not fit all. A PEO works with Employer of Record (EOR) agencies. This agency can function as the employer of your new workforce. Our EOR agencies in China enable you to operate staff in-country without worrying about HR (Human Resource) services, tax, payroll, hiring, firing, or adapting to changes in local regulations and employment laws. The EOR will take on these tasks and will be fully responsible.
When you hire us as a PEO, we come to an agreement together and establish a contract between you and Bradford Jacobs. We also come to an agreement with your new employee in China and sign an employment contract with this person. The daily workflow and tasks of your new workforce will be completely under your guidance. Although we function as your employee’s legal employer, he or she performs tasks for your business as a part of your team.
This is how our process works:
- You want to deploy an existing employee or recruit new talent in China
- Once the candidate is selected, Bradford Jacobs steps in as their EOR through our Chinese entity. We guarantee compliance with employment contracts, payroll, HR, tax, required visas or work permits
- Within a few days, your company has an international presence in a new market, in a prime position without the risks, hassle, or expenses of setting up your own subsidiary
- You will have daily control of the employee, while we manage all work-related registration formalities. Our consultants inform your employee about their holidays, benefits, and entitlements policies
- All approved declarations and completed timesheets are sent to us by the employee. We will invoice you and once the payment is completed, we will deduct all contributions to the authorities and transfer the balance into the employee’s account
When expanding your business into China, there are many opportunities to seek and explore. With us as your trusted partner, you can solely focus on these opportunities without worrying about:
- Registering with the Tax Office
- Registering with the Social Security Organizations
- Setting up a bank
- Creating employment contracts
- Applying for special expatriation status (if applicable)
- Calculating monthly salary and creating payslips
- Researching available tax-free allowances
- Submitting wage tax returns and national insurance forms
- Corresponding with involved parties
- Annual accounts, administration, and year-end statements
- Creating payment schedule for wage tax, national insurances, and net wages
- Personal income tax returns