Malaysia Hotline: +603- 2141 8908
Payroll
Management in Beijing is a vital function for business operations in Beijing. As
the country has numerous statutory regulations regarding payroll and associated
processes like income tax and social security contributions, understanding
these policies can be difficult for any company. With serious fines and
penalties for employers who fail to adhere to these regulations properly, a
solid understanding of China’s payroll laws is the first step to compensating
employees properly. To ensure success, consider the following areas of most
importance when administering payroll in China.
As China
continues to emerge as the largest contributor to global growth, many companies
have sought to set a foothold in this rapidly expanding market. While there are
many benefits for multi-national organizations that establish operations in the
country, there are a number of challenges as well. Aside from the difficulties
of hiring employees in a foreign land, such as language barriers and cultural
differences, one of the most daunting aspects of expanding into China is
successfully navigating the nation’s complex payroll policies.
Social Insurance and Housing
Funds
What can
be even more difficult for employers to understand when hiring employees in
China is managing contributions for the country’s Social Insurance and Housing
schemes, which vary from region to region. Consider the following:
-The
amount of social insurance contributions are adjusted each year for every city,
with the amount determined by using the average salary in each city.
-Respective
city officials often implement the changes at different times, increasing the
administrative burden of the employer.
-Employers
must also be aware of the amount of the employee tax deductible for the Housing
Fund of each region, in order to avoid incorrect tax computations and the
resulting complications. Since the related regulations about payroll in China
may vary from year to year and city to city, enterprise managers should
understand payroll in China timely and thoroughly.
Proper Compensation Ensuring
In
addition to meeting the above regulations, the employer must ensure that all
payments are accurate and include the appropriate deductions and withholdings.
The following are some basic concepts to ensure all employees are compensated
correctly:
-Payments
should include all compensation owed to an employee, including salary, bonuses,
allowances, overtime and severance pay. The employer can withhold non-statutory
deductions, such as unpaid leave or loan repayments.
-It is
also the employer’s responsibility to deduct Social Insurance contributions,
like pension, medical insurance, unemployment insurance, maternity insurance
and occupational injury insurance, on behalf of their employees. Employers are
required to deduct a withholding tax from each employee, which covers income
tax, shares tax, bonus tax and severance tax.
Contact
us
If
you have further queries, please contact Tannet
24
hours Malaysia hotline：603-21418908;
24
hours Hong Kong hotline：852-27837818;
24
hours Hong Kong hotline：86-755-
36990589;
Email:
mytannet@gmail.com