Payroll & HR Compliance

China WFOE Employee Payroll

Monthly payroll processing for local and expatriate WFOE employees across China. We handle IIT (个人所得税) withholding, 五险一金 (five insurances and housing fund), bilingual payslips, and the annual individual income tax reconciliation (汇算清缴).

Individual Income Tax

IIT Brackets (2025)

Based on annual consolidated income after the standard ¥60,000 deduction and additional pre-tax deductions (专项附加扣除).

Annual Taxable Income Rate Quick Deduction

≤ ¥36,000 3% 0

¥36,001 – ¥144,000 10% ¥2,520

¥144,001 – ¥300,000 20% ¥16,920

¥300,001 – ¥420,000 25% ¥31,920

¥420,001 – ¥660,000 30% ¥52,920

¥660,001 – ¥960,000 35% ¥85,920

> ¥960,000 45% ¥181,920

Pre-Tax Deductions (专项附加扣除)

Children's education, housing loan interest, rental, continuing education, elderly care, major illness - can significantly reduce IIT liability.

Expat Preferential Policy

Foreign employees may use lump-sum expense deductions (¥4,800/month extra) instead of special deductions. We calculate which method is more beneficial for each individual.

五险一金 (Five Insurances + HPF)

Social Insurance by City

Employer / Employee contribution rates. Rates are capped at the local average wage ceiling. Rates shown are approximate 2025 figures.

City Pension Medical Unemploy. HPF

Shanghai 16% / 8% 10% / 2% 0.5% / 0.5% 7% / 7%

Beijing 16% / 8% 10% / 2% 0.8% / 0.2% 12% / 12%

Shenzhen 14% / 8% 6% / 2% 0.7% / 0.3% 5% / 5%

Guangzhou 16% / 8% 8% / 2% 0.8% / 0.2% 7% / 5%

Format: Employer% / Employee%. Work injury and maternity (paid by employer only) not shown. Rates change annually.

Annual IIT Reconciliation (汇算清缴)

All employees with income above ¥120,000 must file an annual self-assessment by 30 June. We prepare the reconciliation for all your staff, handle refund claims, and ensure on-time submission to the STA e-filing system (自然人税收管理系统).

Full Service Scope

What Our Payroll Service Covers

Monthly Payroll Run

Salary calculation by the 5th of each month. IIT withheld and remitted to STA by the 15th.

Social Insurance Registration

Registration with the local human resources bureau (人社局) and annual SI base adjustment.

Housing Provident Fund (公积金)

Monthly HPF contributions to the local Housing Fund Management Centre. Remittance and employee account management.

Year-End Bonus (年终奖)

Calculation under the annual bonus IIT method or consolidated income method - whichever is lower for the employee.

Onboarding & Offboarding

Employment contract review, SI account setup for new hires. SI cessation and final settlement for departing employees.

Bilingual Payslips

Monthly payslips in English and Chinese (工资单) for each employee, with full IIT and SI breakdown.

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