As everyone working in China discovers, the country operates complex financial, payroll and taxation systems, which differs from those in other countries in many ways.
For example, there is a complex Individual Income Tax (IIT) system which differs for local and expat employees. There is also a multi-tiered social contribution system. Domestic employees must make a number of different social insurance contributions (such as housing, unemployment, maternity, work-related injury, medical and pension), which vary by region. And foreign employees must also contribute for local social insurance, regardless of whether they are covered internationally. Keeping up to date with the system can be tough!
Many companies choose to lighten the burden of dealing with this by using a payroll service company. FDI China is a leading provider of payroll services for businesses in China, with many years’ experience dealing with all sizes and scales of company payroll.