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
China has intricate labor laws. A PEO ensures compliance with these regulations, including payroll, social insurance, and employee benefits, reducing legal risks.
Navigating Complex Regulations
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.
Cost and Time Savings
PEO in China possess deep knowledge of local business practices, cultural nuances, and regulatory requirements.
Local Expertise
PEO manage payroll and benefits in accordance with Chinese regulations, ensuring timely and accurate payments.
Efficient Payroll and Benefits Management
A PEO provides the flexibility to hire local and foreign employees.
Flexibility in Hiring
With a PEO managing HR responsibilities, businesses can focus on their core operations and strategic initiatives.
Focus on Business Growth
PEOs offer competitive benefits packages and efficient HR support, improving employee satisfaction and retention.
Enhanced Employee Experience
Key Services Provided by HROne
We file social insurance, housing fund and employee taxes on behalf of the client.
Ensuring adherence to local labor laws and regulations to mitigate legal risks.
Providing comprehensive HR services, including onboarding, mandatory benefits filing, and offboarding.
Assisting with all aspects of managing local employees, ensuring compliance and efficient operations.
Keeping businesses informed about changes in local labor laws and regulations.
Access to a full range of payroll processing capabilities for streamlined operations.
Key Processes of HROne PEO Service
- 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.
- 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.
- 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: HROne pays the employees’ salaries.
- System Updates: Updating the system with paystubs and reports.
- Compliance: Payment of social insurances, housing fund, and individual income taxes.
- 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.
- 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.
- Refund: Refunding the deposit balance.
- Service Termination: Confirming the termination of the service.
- Handover Process: Confirming the handover process, including accounts, materials, and information.
- Employee Offboarding Plan: Confirming the plan for offboarding employees.
- 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.
- Refund: Refunding the deposit balance.
