China Professional
Employer Organization
Let HROne handle your China employment risks, liabilities, as well as full-cycle payroll and social insurance processing. Streamline HR operations and ensure full compliance with Chinese labor laws for a seamless business experience.
What is Professional
Employer Organization (PEO)?
A Professional Employer Organization (PEO) is a strategic partner for businesses, offering expert HR management services through a co-employment arrangement.
By outsourcing key HR functions such as payroll processing, compliance management, employee onboarding and offboarding, and benefits administration, businesses can reduce administrative burdens and focus on core operations. The PEO assumes many legal and regulatory responsibilities, ensuring the workforce is well-managed and compliant with local laws.
Benefits of Using a PEO in China
Navigating Complex Regulations
China’s intricate labor laws and payroll requirements are expertly managed by a PEO, ensuring compliance and reducing legal risks.
HR Outsourcing Efficiency
Streamlines operations by delegating HR tasks to experienced professionals, reducing administrative burdens.
Cost and Time Savings
Establishing a local HR team is expensive and time-consuming; a PEO accelerates operations cost-effectively.
Scalability
PEO services adapt to business needs, supporting workforce fluctuations and growth seamlessly.
Local Expertise
PEOs bring in-depth knowledge of Chinese labor laws, business practices, and cultural nuances.
Enhanced Employee Experience
Competitive benefits and efficient HR management improve employee satisfaction and retention.
Compliance Assurance
Strict adherence to Chinese labor laws, payroll regulations, and benefit requirements.
Risk Mitigation
Reduces liabilities related to non-compliance and employment law violations.
Key Components of China PEO Services
Provided by HROne
HROne offers ongoing assistance for employment and payroll-related inquiries, ensuring compliance with Chinese labor laws. Services include reviewing templates for employment contracts, labor contracts, and termination agreements, while keeping clients informed of regulatory changes to mitigate compliance risks.
HROne manages all mandatory processes for onboarding new hires and offboarding departing employees, ensuring strict adherence to Chinese legal and regulatory requirements. This guarantees a seamless and compliant employee transition process.
HROne facilitates the migration and configuration of payroll systems tailored to client-specific requirements. This ensures a smooth transition, operational readiness, and alignment with China’s payroll regulations.
HROne oversees the entire payroll lifecycle, including payroll policy management, data collection, salary calculation, disbursement, detailed report generation, and secure data storage. This comprehensive approach ensures accuracy, efficiency, and compliance with local laws.
HROne provides a secure and intuitive online platform that allows both clients and employees to access payroll information, payslips, and reports conveniently. This enhances transparency and accessibility for all users.
HROne handles all mandatory social insurance programs in China, including pension, medical, maternity, unemployment, and work injury insurance. The service also includes managing housing fund contributions, employee tax deductions, and statutory filings to maintain full compliance with local regulations.
Key Processes of HROne PEO Service
Client Onboarding
Initial Meeting: The HROne Account Manager virtually meets with the client’s designated contact person to initiate the onboarding process.
- Policy Introduction: HROne introduces relevant policies and demonstrates online portal functionalities to the client.
- Process and Template Confirmation: HROne and client confirm the work calendar, processes, templates (including labor contract templates), benefits, and salary structure. Additional confirmations include payroll disbursement responsibilities (HROne or client), individual income tax reporting (HROne or client), and invoicing information.
- System Setup: HROne configures client-specific policies and templates within the HROne system.
- System Access: HROne provides client the access to the HROne system for seamless management.
- Employee Onboarding: Initial employees are onboarded, following the detailed process outlined below.
- Service Start: Services officially commence.
Employee Onboarding
- Introduction: Client confirms the new employee’s salary, benefits, employment conditions, and other related details.
- System Setup: HROne uploads the new employee’s information into the system.
- Account Management: HROne establishes or transfers the new employee’s social insurance, housing fund, and bank accounts.
- System Access: HROne grants system access to the new employee for payroll visibility and reporting.
- Service Start: Services for the new employee officially begin.
Monthly Processing
- Policy Updates: HROne notifies the client of any government policy changes affecting payroll processing.
- Information Submission: Client submits necessary payroll data, including employee work hours and updates to benefits or deductions.
- Payroll Processing and Finalization: HROne calculates salaries, social insurance contributions, housing fund payments, individual income taxes, and service fees. Detailed invoices are prepared for client review.
- Client Review and Confirmation: Client reviews and approves payroll details and invoices for accuracy.
- Service Fee Payment: Client completes payment for the service fees.
- Salary Disbursement: Salaries are disbursed either by HROne or the client, depending on the agreed process.
- Portal Management and Updates: HROne updates the online portal, granting access to newly onboarded employees and revoking access for offboarded employees as necessary.
- Statutory Deductions and Contributions: HROne processes payments for social insurance, housing funds, and employee individual income taxes on behalf of the client.
Year-End Processing
- Calendar Confirmation: HROne and client finalize the work calendar for the upcoming year.
- Annual Salary Report Preparation: HROne compiles the annual salary report, including data for offboarded employees.
- Report Confirmation: Client reviews and approves the annual salary report.
- Report Submission: The report is submitted to government authorities by HROne or the client.
- Policy Briefing: HROne briefs the client on relevant policy updates affecting payroll.
- System Updates: HROne incorporates the new policies into the payroll system.
- Tax Return Assistance: HROne provides consolidated data to assist employees with their annual tax returns.
Employee Offboarding
- Termination Briefing: Client provides details on the reason, background, and plan for the termination.
- Solution Provision: HROne offers a professional termination solution, including required documentation and communication strategies.
- Solution Confirmation: Client confirms the solution, which includes preparing non-renewal notices, termination agreements, resignation letters, and severance calculations.
- Documentation: HROne calculates severance payments, provides templates for termination-related documents, and offers communication plans if needed.
- Termination Completion: Client completes the termination process with the departing employee.
Client Offboarding
- Service Termination: HROne and client confirm the termination of services.
- Handover Process: HROne and client agree on the handover of accounts, materials, and information, following a predefined checklist.
- Final Payment Preparation: HROne prepares the final invoice, including any outstanding balances.
- Confirmation and Payment: Client reviews and settles the final invoice.
- Handover Completion: HROne transfers all accounts, materials (e.g., U-keys, labor handbooks, passwords), and necessary information to the client, completing the offboarding process.
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