Professional Employer Organization
Navigating employment and payroll compliance can be challenging. We take care of the mandatory HR processes to make sure your HR activities meet the statutory requirements.
What is a Professional Employer Organization (PEO)?
A Professional Employer Organization (PEO) is a service provider that partners with businesses to manage various HR responsibilities through a co-employment arrangement. This allows businesses to outsource essential HR functions such as payroll processing, benefits administration, compliance management, and employee onboarding and offboarding. By taking on many administrative and regulatory tasks, the PEO enables businesses to focus on their core operations while ensuring their workforce is well-managed and compliant with local laws.
In Which Situations Clients Need a PEO
- HR Outsourcing Needs: When a business wants to outsource its HR functions to streamline operations and reduce administrative burdens.
- Compliance Management: To ensure compliance with complex local labor laws, payroll regulations, and employee benefits requirements.
- Employee Onboarding and Offboarding: For efficient management of hiring and terminating employees in compliance with local regulations.
- Expansion into New Markets: When expanding into new geographical areas, a PEO can help manage local HR requirements without the need to establish a local HR department.
- Small to Medium-Sized Businesses: Access high-quality HR services and benefits packages that are usually available only to larger companies.
- Cost Reduction: Lower costs related to managing an in-house HR department, including salaries, benefits, and technology investments.
- Backup HR Team: Provide support and backup for existing HR teams, ensuring continuity and compliance during peak times or transitions.
How PEO Works?
The PEO manages various HR tasks, including onboarding, mandatory benefits filing, and offboarding.
The PEO oversees payroll setup and configuration, data collection, payroll data entry, salary payments, tax withholdings, social insurance contributions, and employee accounts management.
The PEO ensures that all employment practices comply with local labor laws and regulations.
The PEO provides access to competitive employee benefits, including health insurance, retirement plans, and additional
The PEO assumes some of the risks associated with employment, such as compliance with labor laws and managing employee-related liabilities.
Benefits of Using a PEO
Compliance Assurance
Ensures adherence to local employment laws, reducing the risk of penalties and legal issues.
Cost Efficiency
Avoids the high costs associated with maintaining an in-house HR department.
Access to Better Benefits
Provides access to high-quality employee benefits, making it easier to attract and retain top talent.
Focus on Core Business
Allows businesses to concentrate on their primary activities by outsourcing HR responsibilities.
Scalability
Offers scalable HR solutions that can grow with the business.
Risk Mitigation
Minimizes risks related to employment law violations and administrative errors by effectively managing compliance and HR operations.
Benefits of Using a PEO in China
HROne is a one-stop HR solution providing services from hiring to comprehensive HR admin. Partner with, and trust HROne, your employees will be in good hands.
Navigating Complex Regulations
China has intricate labor laws. A PEO ensures compliance with these regulations, including payroll, social insurance, and employee benefits, reducing legal risks.
Cost and Time Savings
Establishing a local HR department in China can be both expensive and time-consuming. A PEO enables businesses to start operations quickly and cost-effectively.
Local Expertise
PEOs in China possess deep knowledge of local business practices, cultural nuances, and regulatory requirements
Efficient Payroll and Benefits Management
PEOs manage payroll and benefits in accordance with Chinese regulations, ensuring timely and accurate payments.
Flexibility in Hiring
A PEO provides the flexibility to hire local and foreign employees.
Focus on Business Growth
With a PEO managing HR responsibilities, businesses can focus on their core operations and strategic initiatives.
Enhanced Employee Experience
PEOs offer competitive benefits packages and efficient HR support, improving employee satisfaction and retention.
Key Services Provided by HROne
- Social Insurance, Housing Fund and employee tax filing: We file social insurance, housing fund and employee taxes on behalf of the client.
- Compliance Management: Ensuring adherence to local labor laws and regulations to mitigate legal risks.
- HR Administration: Providing comprehensive HR services, including onboarding, mandatory benefits filing, and offboarding.
- Local Employee Support: Assisting with all aspects of managing local employees, ensuring compliance and efficient operations.
- Legal and Regulatory Updates: Keeping businesses informed about changes in local labor laws and regulations.
- All HROne Payroll Processing features: Access to a full range of payroll processing capabilities for streamlined operations.
Key Processes of HROne PEO Service
#1: Client Onboarding
- Initial Meeting: Virtual introduction between client and Account Manager.
- Policy Introduction: Overview of relevant policies and online portal functionalities.
- Process and Template Confirmation: Agreement on work calendar, processes, templates, benefits, and salary structure.
- System Setup: Configuration of client-specific policies and templates in HROne’s system.
- System Access: Providing the client with access to HROne’s system.
- Employee Onboarding: Initial employees are onboarded ( see detailed process below ).
- Service Start: Official commencement of services.
#2: Employee Onboarding
- Introduction: Client introduces the new employee to HROne.
- Employment Details Confirmation: Finalizing salary, benefits, and employment conditions.
- Authorization: New employee signs a privacy authorization letter.
- Information Collection: Gathering necessary data from the new employee.
- Payment Preparation: Preparing the first payment notice.
- Confirmation and Payment: Client confirms and pays the first payment notice.
- System Setup: Adding the new employee’s information to HROne’s system.
- Account Setup: Establishing social insurance, housing fund, and bank accounts for the new employee.
- System Access: Providing the new employee with access to HROne’s system.
- Service Start: Official commencement of services for the new employee.
#3. Monthly Processing
- Policy Updates: Informing the client of any changes in government policies.
- Information Exchange: Client provides payroll-related information.
- Payment Preparation: Preparing the payment notice.
- Confirmation and Payment: Client confirms and pays the payment notice.
- Salary Disbursement.
- System Updates: Updating the system with paystubs and reports.
- Compliance: Payment of social insurances, housing fund, and individual income taxes.
#4. Year-End Processing
- Calendar Confirmation: Confirming the work calendar for the upcoming year.
- Annual Report Preparation: Preparing the annual salary report, including data on offboarded employees.
- Report Confirmation: Client confirms the annual salary report.
- Submission: Submitting the report to government authorities.
- Policy Updates: Briefing the client on new government policies.
- Policy Implementation: Implementing updated policies in the system.
- Data Management: Removing data of offboarded employees upon request.
- Compliance: Filing mandatory benefits, social insurance, and housing fund.
#5. Employee Offboarding
- Termination Briefing: Client explains the reason for termination.
- Solution Provision: HROne provides a professional termination solution.
- Solution Confirmation: Client confirms the solution.
- Documentation: Completing termination documents with the employee.
- Payment Preparation: Preparing the payment notice for severance payment.
- Confirmation and Payment: Client confirms and pays the severance payment.
- Severance Payment: Processing the severance payment.
- Termination Certificate: Issuing the termination certificate.
- Account Management: Transferring or archiving related accounts and removing system access if required.
- Case Closure: Ensuring all unsettled cases are closed.
#6. Client Offboarding
- Service Termination: Confirming the termination of the service.
- Handover Process: Confirming the handover process, including accounts, materials, and information.
- Final Payment Preparation: Preparing the last payment notice, including any historical balance.
- Confirmation and Payment: Client confirms and pays the last payment notice.
- Employee Offboarding: Offboarding the employees.
- Handover Completion: HROne hands over accounts, materials, and information to the client.
- Case Closure: Ensuring all unsettled cases are closed.
