Global payroll in China

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Rivermate's global payroll solution helps companies hire remote employees in China . We take care of global payroll, taxes, benefits, compliance and HR activities. So you can focus on growing your business. Our global payroll solution is beneficial to companies that want to hire remote employees in a breeze. On this page you will find employment information for China.

1. Grow your team in China with Rivermate as your global payroll provider

Payroll, benefits, taxes, and compliance can be difficult to manage in , particularly if you don't have established local relationships. You can hire employees in effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

2. Introduction to global payroll in China

If you are interested in hiring a remote team in China, or even just individual remote employees in China, then you have come to the right place!

Rivermate is an Employer of Record (EOR) that offers China payroll solutions. As a China payroll provider, we will cover everything from salary, benefits, employer-to-employee contributions, and especially payroll compliance in China. We are confident Rivermate’s payroll solutions China will help you grow as a business—because now, you won’t have to worry about your payroll solutions China. We take care of everything payroll!

With Rivermate, you can run China payroll services in just one click—regardless of currency, benefits, insurance, and your local labor laws. Everything is automated. Our priority is for you to focus on your company’s strategy and growth.

Our Rivermate Global Payroll services are made especially for startups and scaleups. We know that startups try to be extra prudent when it comes to choosing a payroll provider, so it is our mission at Rivermate to be your most reliable and cheapest payroll provider option. So if you’re looking for global payroll providers for small businesses, look no further and book a call with us now!

3. How to set up global payroll in China

To begin setting up payroll, you must first establish a subsidiary and open bank accounts in the country. All payments to employees must be made in the local currency, the Chinese yuan.

You also need a strong written employment contract that includes information such as social insurance, working hour regulations, and working conditions, as required by Chinese law.

4. Taxation rules for global payroll in China

Before you can start a payroll in China, you must first understand the country's taxation rules. Based on a worker's income, China's progressive income tax ranges from 3% to 45%. The rate of corporate taxation is 25%.

Employers in China contribute to various benefit schemes. The country's statutory benefits include five insurances as well as housing assistance:

1. Medical insurance

2. Pension

3. Compensation for workers

4. Unemployment benefits

5. Maternity Leave

As an employer, you must contribute to the housing fund, which functions similarly to a 401(k). While some contribution is required, employees frequently try to bargain for more during the hiring process. Employers usually contribute 5% to 25% of an employee's annual salary.

5. Payroll options for companies in China

Companies that wish to expand their operations globally have four different payroll options in China. These payroll options are:

1. Internal Payroll. This payroll option is applicable for already established companies in China. It includes devoting an entire Human Resources staff to running the company's payroll procedures.

2. Remote Payroll. Smaller firms may lack the capacity to handle their own payroll, but they may add their workers to the parent company's payroll. This action, on the other hand, requires considerable thinking. You must guarantee that you follow the rules and laws of each nation.

Working with a local outsourcing firm is one method to retain money in the local economy, but you'll still need to study all of the local rules and regulations, since you'll be held responsible.

3. China payroll outsourcing: Outsourcing your payroll to an Employer of Record in China, such as Rivermate, is another alternative for Andorra payroll outsourcing. We can manage all aspects of your payroll, including compliance. Send us a note and we'll get back to you as soon as possible!

6. Payroll compliance China

It is the obligation of the employer to ensure that all payroll-related transactions are properly documented and recorded. All salaries and compensation payments must adhere to the local minimum wage as well as other applicable laws and regulations.

Rivermate's payroll services in China can assist you in staying in compliance with the country's ever-changing payroll rules. We provide an all-inclusive solution that covers everything from compliance and reporting to salary payments.)

7. How to manage payroll in China

Companies that have a business presence in China have different ways of managing payroll. However, most of the options you have for running payroll in China are either expensive or require establishing a subsidiary in China. The cheapest, most efficient, and most reliable payroll processing system in China is by outsourcing payroll to Employers of Record (EOR) in China. Rivermate is one of those Employers of Record.

At Rivermate, we offer you the most efficient, most compliant, and cheapest HR and Payroll Management services in China. We do this by taking care of your payroll-related needs, such as keeping track of your employees�� financial records, including incentives, gross and net salary, and payslips, all the while staying compliant with the labor laws in China. Because we do your online payroll management for you, you can have absolute focus on your business’ strategy and growth.

Rivermate is all about growth through collaboration and we achieve this by offering the most reliable yet cheapest services for managing payroll for small businesses in China.

8. Entitlement and termination terms in China

In China, a contract may not be permitted to end unless all parties concur or the contract expires.

9. Compensation in China

The minimum wage in China varies by province and city. For example, as of 2021, Shanghai has the highest monthly minimum wage of 2,480 yuan, followed by Shenzhen at 2,200 yuan and Guizhou at 1,570 yuan. Employers typically pay employees on a monthly basis, either in cash or via a bank transfer.

Although a 13th-month bonus or salary is not required by law, it is a market norm in China. Instead of a guaranteed bonus, you can state in the employment contract the monthly salary, the frequency with which employees will be paid, and the total annual salary. You can then specify that a bonus is optional but will be distributed if certain conditions are met. Salespeople frequently receive a commission plan in lieu of this bonus.

10. Working hours and overtime in China

In China, the standard workday is eight hours and no more than 44 hours per week. Employers may adopt different work hours in exceptional circumstances and with the Labor Department's approval.

Offices are typically open from 8 a.m. to 6 p.m. each day, with a two-hour lunch break between noon and 2 p.m., although hours vary by city. Government offices are open Monday through Friday from 9 a.m. to 5 p.m. and are closed on weekends.

11. Employee benefits in China

The national system provides basic health and pension insurance; however, extra health insurance may be supplied to the employee.

Employers in China contribute to a housing fund, which is similar to a 401k plan. Employees' real estate rent and purchase costs are subsidized by the fund. Some contributions are required; nevertheless, employees typically bargain for a higher housing fund rate. Employers are typically required to contribute between 5% and 25% of an employee's annual wage. Distinct cities have different policies concerning the housing fund.

It is difficult to provide stock options to employees in China. We strongly advise you to consider if it is "worth" delivering this bonus to your Chinese staff before doing so.

12. Why choose Rivermate as your global payroll provider in China

Establishing an entity in to hire a team takes time, money, and effort. The labor law in has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record (EOR) solutions in give you peace of mind so you can focus on running your business. Please contact us if you'd like to learn more about how Rivermate can help you hire employees in via our Employer of Record (EOR) / PEO solution.

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