Payroll & Tax Compliance
Managing payroll and tax compliance in China can be challenging for foreign companies. Payroll regulations, tax policies, and social insurance requirements vary across different cities and regions, making compliance difficult without local expertise. Companies must accurately handle individual income tax, mandatory social insurance, and housing fund contributions while staying aligned with China’s strict labor regulations. Even small payroll or compliance mistakes can lead to penalties, disputes, and operational risks. Our China Payroll & Compliance Management service helps international businesses streamline payroll operations, maintain compliance, and reduce administrative burden with reliable local support.
Why Payroll Compliance Is Challenging in China
Challenges Foreign Companies Commonly Face
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Constantly changing tax regulations
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City-specific social insurance policies
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Strict labor law requirements
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Payroll calculation complexity
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Compliance risks and penalties
Reduce compliance risk with local payroll experts.
Choose Your Payroll Solution
Whether you already operate in China or are entering the market for the first time, ExpertinChina has the right payroll model for your business.
Why ExpertinChina
What sets our payroll and compliance services apart.
Tailored to Your Needs
Flexible service packages — from basic payroll processing to full HR outsourcing.
No Legal Entity Required
Hire and pay employees in China through our EOR solution, no WFOE needed.
Zero Setup Fees
No hidden onboarding charges. Pay only for the services you use each month.
100% Regulatory Compliance
Every filing, every contribution, every deadline — handled in strict accordance with PRC law.
What We Do
End-to-end payroll, tax, and HR support for foreign companies operating in China.
Monthly Payroll Processing
Accurate salary calculation, payslip generation, and disbursement. We apply the latest local wage policies, overtime rules, and deduction standards every cycle.
Employee Onboarding & Exit
Labor contract drafting, new-hire registration, social security account setup, and compliant exit processing including final pay settlement and certificate issuance.
Individual Income Tax (IIT) Filing
Monthly IIT computation and declaration through the local tax bureau's e-filing system, including special additional deductions and annual reconciliation support.
HR & Employment Advisory
Ongoing guidance on China labor law, employment disputes, termination procedures, severance calculations, and policy updates that affect your workforce.
Social Insurance & Housing Fund
Calculation, declaration, and payment of all five mandatory social insurances (pension, medical, unemployment, work injury, maternity) plus the housing provident fund.
Annual Payroll & Bonus Tax Reporting
Year-end payroll reconciliation and bonus tax calculation, IIT annual filing, and statutory audit-ready reports delivered to meet local authority deadlines.
How It Works
A straightforward three-step process from setup to ongoing compliance.
01
Initial Setup
We open your tax, social security, and housing fund accounts (or integrate with your existing WFOE accounts), configure your payroll parameters, and load employee data into our system.
02
Monthly Processing
Each month we calculate salaries, withhold IIT, file social insurance and housing fund contributions, and deliver detailed payroll reports for your review and approval.
03
Ongoing Compliance & Reporting
We monitor regulatory changes, adjust calculations as policies update, prepare annual filings, and provide advisory support whenever employment issues arise.
Avoid delays, mis-filing and unnecessary complications, let our experts handle your China payroll and tax with precision and efficiency.
FAQ Section
Everything you need to know about payroll and hiring employees in China.
Q1: Do I need a company in China to hire employees?
A: No. If you don't have a legal entity in China, you can hire employees through our PEO / Employer of Record service. We act as the legal employer on paper while you manage the employee's day-to-day work.
Q2: What are the options for hiring staff in China?
A:
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(a) PEO / EOR — hire through a licensed agency without your own entity.
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(b) Direct hire via WFOE — sign labor contracts under your own Wholly Foreign-Owned Enterprise and optionally outsource payroll.
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(c) Representative Office — ROs cannot hire directly; employees must be dispatched through a licensed labor dispatch agency.
Q3: What mandatory benefits must employers provide in China?
A: Employers are required to contribute to five social insurances — Pension, Medical Insurance, Unemployment Insurance, Work-Related Injury Insurance, and Maternity Insurance — plus the Housing Provident Fund. Rates vary by city.
Q4: What does a typical salary package in China include?
A:
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A standard package consists of:
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Fixed base salary
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Variable pay (bonuses, commissions, allowances)
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A 13th-month salary or annual bonus (very common)
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Mandatory social insurance & housing fund contributions
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Supplementary commercial health insurance (common among foreign employers)
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Statutory annual leave and paid sick leave
Q5: How is the total employment cost calculated?
A: Total monthly cost = net salary + employer's share of social insurance & housing fund + employee's share (withheld from gross salary) + IIT + any allowances or supplementary benefits.
Q6: What are the statutory annual leave entitlements?
A:
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Minimum annual leave is based on cumulative working years:
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1–9 years: 5 days
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10–19 years: 10 days
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20+ years: 15 days
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Employers may offer more but cannot offer less.
Q7: How many public holidays do employees get?
A:
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China has 11 days of paid public holidays per year, spread across 7 festivals:
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New Year (1 day)
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Spring Festival (3 days)
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Qingming Festival (1 day)
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Labor Day (1 day)
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Dragon Boat Festival (1 day)
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Mid-Autumn Festival (1 day)
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National Day (3 days)
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Overtime on public holidays must be compensated at 300% of normal wages.
Q8: What are the rules on probation and termination?
A: Probation: Up to 1 month for contracts under 1 year, up to 2 months for 1–3 year contracts, up to 6 months for 3+ year contracts. Probation salary must be at least 80% of post-probation salary.
Termination: 30 days' notice (or 3 days during probation).
Severance: 1 month's salary per year of service. If monthly salary exceeds 3x the local average, severance is capped at that rate.
This FAQ provides general guidance only. Consult with legal professionals for specific advice regarding your situation.
