When it comes to running payroll, you know there’s a whole process that goes into it. You need to determine your employees’hours worked, do some calculations, and give out wages. And, you must give yourself ample time to ensure employees receive said wages on payday. So, how long does payroll take to process?
When processing payroll for your business in China, payment to employees needs to be made in the country’s official currency, the Chinese yuan.
You are also mandated by law to have a strong written employment contract that details contracted work and equivalent pay, overtime rates, social security benefits, and other mandatory contributions to be withheld.
An employment contract in China should also include other entitlements such as the number of personal and medical leave days allocated. This is to ensure that both you and your employees have come to terms and agreed compensation, benefits and legal terms should there be a disruption in the employment relationship, such as termination or resignation. For example, an employee in China is allowed up to 12 months of sick leave with pay if the illness or accident is work-related. While there is no need for a formal notice to fire an employee with cause, it is required by law to provide a 30-day notice to an employee who is to be terminated without cause.
In order to hire employees legally and be able to pay them, you will be required to have an entity in China. This would further require your business to hire human resources staff dedicated to payroll management or outsourcing it to an external partner who understands the complexity of Chinese employment and compliance laws.
To avoid the long waiting process when dealing with unfamiliar policies, the most productive way is leave those issues to a professional payroll service angency like China Payroll. We will do all the maths in an efficient way.
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- What materials do I need to prepare to apply for work visa in China?
