Payroll, IIT & Social Security

Payroll Management
Payroll procedures and local legislations vary from one region to another and require extensive knowledge of local regulations. Interpreting legislation, complying to local rules and managing your monthly payroll operations in China can therefore be a complicated and time-consuming process for foreign invested companies.
 
Moore – MS Advisory offers a full range of payroll service to reduce time and costs, streamline your monthly operations, and ensure you stay compliant with Chinese regulations. Our integrated payroll service includes:

  • Monthly Payroll Calculation
  • Social Security & Housing Fund Registration
  • Individual Income Tax & Benefits Planning
  • Monthly & Annual Tax Declaration
  • Expat Salary Cost Reimbursements
  • Total Cost Overview to Management

Individual Income Tax (“IIT”)
Individual Income Tax (“IIT”) is a tax framework which is complex in nature and foreign companies are required to calculate, declare and pay the Individual Income Tax on behalf of their employees. The Chinese individual income tax is withheld monthly, based on a cumulative withholding method. This means that individuals with high salaries and/or increases of salary, could have a different amount of IIT that needs to be paid monthly, depending on the time of the year.
 
In 2019, the country's ongoing regulatory changes included major overhauls of the Individual Income Tax system, including the following:

  • Introduction of Itemized Deductions
  • End of Expatriate Allowances - by 2022
  • Developments regarding the Annual Bonus Policy

 
We support foreign invested companies and their employees to determine their personal tax liability and obligations, calculate the individual income tax and support with the tax filing procedures.
 
China Social Security
Companies are required to withhold the applicable social security contributions for Chinese nationals and foreign employees. The social security payments must be settled monthly with the Local Social Security Bureau. The monthly payment includes the following contributions: Pension, Medical Insurance, Unemployment Insurance, Work Related Injury Insurance, and Maternity Insurance. Additional to the Social Security, the employee (Chinese nationals) is required to contribute monthly to the national Housing Fund.
 
We offer administrative support and execution for social security registration and calculations for local and expatriate staff of your subsidiary in China.