Our collection of resources based on what we have learned on the ground
Resources
Q&A
What are the advantages of outsourcing payroll processing in China?
- October 2012
- Free Access
The benefits of outsourcing payroll services may include: Greater transparency; Increased processing efficiency and accuracy; Increased confidentiality; Full compliance with all laws and regulations; Guaranteed continuity of service provision;...
Q&A
What are the employer?s obligations to pay for mandatory benefits in China?
- October 2012
- Free Access
In the monthly payroll process, employers are required to pay company contributions for all of their employees, as well as divert employees’ individual contributions from their paychecks to the Social Insurance Bureau. Based on central governme...
Q&A
How do human resources agencies lack in transparency of payroll processes hurt f...
- October 2012
- Members Access
Representative offices must recruit their Chinese employees through an agent (normally, a foreign enterprise services company), and such agents can also be quite useful for other foreign-invested entities on occasion. FESCOS generally have their own ...
Q&A
How are social insurance inspections carried out in China?
- October 2012
- Members Access
Social insurance inspections—and the penalties for being found out of compliance—are one major reason to ensure full accuracy in mandatory benefit contributions. Social insurance audit/inspection practices vary by city. In Shanghai, for e...
Q&A
How many different mandatory benefit types are there under Chinese law?
- October 2012
- Free Access
The different types of mandatory benefit can be categorised as follows: Medical Unemployment Housing Fund* (Foreigners are not required to pay housing fund depending on the city), Work-Related Injury Pension Maternity
Q&A
What is a foreign enterprise services company in China?
- October 2012
- Free Access
Many foreign-invested companies and representative offices in China have a contract in place with a foreign enterprise services company (FESCO) for labor dispatch, payroll and/or additional services for Chinese Employees.
Q&A
What is 'hukou'?
- October 2012
- Free Access
A hukou stipulates an employee’s home city/country and can either be a rural hukou or an urban hukou, with the social insurance system applying only the latter.
Q&A
What services are provided by foreign enterprise services company besides payrol...
- October 2012
- Free Access
Some FESCOs carry out other services such as executive search work (headhunting) on behalf of their clients, which could create a conflict of interest between payroll clients (who supply confidential personal and salary information) and headhunting c...
Q&A
What does the Labor Contract Law stipulate about workers dispatched from foreign...
- October 2012
- Free Access
In the past, this directive has often been ignored and foreign enterprise services companies have been used to hire a wide variety of Chinese workers upon the client’s request. However, recent draft legislation regarding the obligation of emplo...
Q&A
What are the advantages and disadvantages of foreign enterprise services compani...
- October 2012
- Free Access
The advantages of using foreign enterprise services companies are: lower risk than direct hiring hiring assistance during process of incorporation mandatory benefit payments in other cities The disadvantages thereof are: conflict of intere...
magazine
Social Insurance and Payroll
- September 2012
- Members Access
When the Interim Measures for Participation in the Social Insurance System by Foreigners Working within the Territory of China came into effect last October, the inner workings of the social insurance system became even more relevant to the average f...
interview
Global Connections: China
- September 2012
- Free Access
Richard Cant, Dezan Shira & Associates' Regional Director in the Shanghai office discusses the expanding market and opportunities in China's second tier cities.
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