HR & Payroll Services in China | Dan Young Business Consultancy

HR & Payroll Services for Foreign-Invested Enterprises in China

Full‑Cycle Workforce Management & Compliance

China’s labor, social insurance, and tax regulations are complex and subject to frequent change. For foreign‑invested enterprises (FIEs), non‑compliance can result in penalties, back payments, and reputational damage. Our HR and payroll solutions are designed to keep you fully compliant while reducing administrative burden We offer comprehensive, compliant, and tailored HR & Payroll solutions to address the unique challenges faced by FIEs in navigating China’s complex labor laws, tax regulations, and social insurance systems.

Our team of legal experts, HR specialists, and payroll professionals possesses in-depth expertise in PRC labor legislation, individual income tax (IIT) rules, and local regulatory variations, ensuring that your enterprise’s HR operations and payroll management are fully compliant, efficient, and aligned with your global business strategies. From recruitment to retirement, we provide a seamless, legally sound framework for managing your Chinese workforce.

Payroll Calculation & Processing
Tax Compliance & IIT Filing
Social Insurance & Housing Fund
Labor Law Compliance
HR Risk Control

Service Inquiry

Full Application Workflow

Payroll Calculation & Processing

Accurate, timely payroll processing is non‑negotiable. We handle every calculation in accordance with Chinese regulations.

Gross‑to‑Net Computation – Calculate monthly salaries including basic pay, overtime, bonuses, allowances, and other taxable benefits.
Statutory Deductions – Deduct individual income tax (IIT), employee portion of social insurance (pension, medical, unemployment), and housing fund contributions.
Overtime & Leave Management – Apply correct overtime rates (150%, 200%, 300% of normal wage) and handle paid annual leave, sick leave, marriage leave, and other statutory leaves.
Payroll Register & Payslips – Generate detailed payroll registers and individual payslips in both Chinese and English.
Bank Transfers – Prepare salary batch files for direct deposit to employee bank accounts.

Tax Compliance & IIT Filing

We ensure full compliance with China’s individual income tax (IIT) regime, which underwent significant reform in 2019 and is updated annually.

Monthly IIT Calculation & Withholding – Apply the 7‑level progressive tax rate (3% to 45%) on taxable income, after deductions for social insurance, housing fund, and special additional deductions (children’s education, elderly care, mortgage interest, rent, continuing education, serious illness).
Monthly IIT Filing – File withholding returns with the local tax bureau before the 15th of each month.
Foreign Employee Tax Treatment – Advise on tax treaties, residency days (183‑day rule), and special deductions available to non‑resident foreigners.
Tax Bureau Liaison – Respond to tax inquiries, audits, and notices on your behalf.

Social Insurance & Housing Fund Management

China’s mandatory social insurance system (pension, medical, unemployment, work injury, and maternity insurance) and housing fund impose strict obligations on FIEs. We manage these contributions to ensure compliance with local rules, including:

Monthly Contribution Calculation – Compute employer and employee portions based on local contribution bases (updated annually).
Online Declaration – Submit contribution lists through local social insurance and housing fund online portals.
Payment Coordination – Ensure timely payment from your corporate bank account.
Employee Record Maintenance – Update personal information, transfer records upon employee departure, and handle benefit claims (medical reimbursement, work injury certification, housing fund withdrawal)..

Labour Law Compliance & HR Risk Control

Labour disputes are costly and time‑consuming. We help you build a legally robust employment framework to minimise risks.

Employment Contract Review – Ensure all contracts contain mandatory clauses and avoid unenforceable provisions (e.g., unlimited liquidated damages).
Internal Policy Drafting – Prepare employee handbooks, disciplinary rules, leave policies, and overtime approval procedures that comply with PRC law.
Termination & Severance – Advise on lawful grounds for termination (probation failure, serious misconduct, economic redundancy) and calculate statutory severance pay (one month per year of service, capped at 12 months for high earners).
Labour Arbitration & Litigation Support – Represent your company before labour arbitration commissions and courts; provide evidence collection and strategy advice.
Background Check & Non‑Compete – Draft and enforce non‑disclosure and non‑compete agreements (subject to post‑termination compensation).

HR Administration & Record Keeping

Maintaining accurate, accessible employee records is both a legal obligation and a business necessity.

Personnel File Management – Organise individual files containing contracts, ID copies, education certificates, training records, and performance reviews.
Leave & Attendance Tracking – Record annual leave, sick leave, personal leave, and attendance using digital tools.
Employee Lifecycle Events – Handle promotions, transfers, salary adjustments, and secondments with proper documentation.
Labor Inspection Preparedness – Ensure your records are audit‑ready for unexpected inspections by labour bureaux or tax authorities.
Employee Queries – Respond to employee questions regarding pay, tax, social insurance, and leave entitlements.

Recruitment & Onboarding Support

Recruitment & Onboarding Support
Attracting and legally onboarding talent is the first critical step.

Job Posting & Candidate Sourcing – Place advertisements on leading Chinese platforms (Liepin, Zhaopin, 51job) and leverage our network for headhunting.
Interview Coordination & Background Checks – Screen candidates for qualifications, work history, and criminal records (where permitted).
Offer Letter & Employment Contract Drafting – Prepare bilingual contracts compliant with PRC Labour Law, including mandatory terms (probation, working hours, compensation, social insurance, termination conditions).
Onboarding Formalities – Collect personal documents, register new employees with the social insurance and housing fund authorities, and complete labour contract filing.
Work Visa & Residence Permit– Coordinate with our immigration team to secure work permits and residence permits for foreign employees (Z‑visa pathway).

blurred abstract background with gradient blue white creates textured grainy visual effect

Offload your HR and payroll burden to specialists. Contact us today for a compliance check and a customised service proposal.

Service Inquiry Contact Us

Frequently Asked Questions

What does payroll compliance involve in China?

Payroll in China involves calculating gross salary, withholding individual income tax (IIT), contributing to mandatory social insurance and the housing fund, and remitting these to the authorities on time. Errors or late payments create penalties and employee disputes, so accuracy each cycle is essential.

What social insurance must employers pay in China?

Employers must enroll employees in the five statutory social insurances (pension, medical, unemployment, work-injury, and maternity) plus the housing provident fund. Contribution rates and bases vary by city, and both employer and employee portions must be calculated and paid monthly.

Are foreign employees required to pay social insurance in China?

In most cities foreign employees are required to participate in social insurance, though some localities and bilateral totalization agreements provide exemptions for certain contributions. We assess your employees’ specific situation and apply any available exemptions.

How is individual income tax (IIT) calculated for employees?

IIT on salaries uses progressive rates from 3% to 45% applied to taxable income after statutory deductions and special additional deductions. It is withheld monthly and reconciled annually. We handle accurate withholding, filing, and the annual reconciliation.

Can you handle employment contracts and onboarding?

Yes. We draft compliant PRC labor contracts, manage onboarding and offboarding, prepare employee handbooks, and advise on probation, overtime, leave, and termination so your workforce management stays fully compliant.

Do we need a legal entity in China to hire local employees?

Generally yes, a China legal entity is required to directly employ and pay staff. Where you do not yet have one, we can advise on compliant alternatives and help you establish the appropriate entity.