Payroll in China

MSA provides comprehensive payroll services designed to minimize time and expenses, optimize your processes, and maintain adherence to Chinese regulatory standards.

Payroll Outsourcing and Management in China

China Payroll procedures and local legislation vary from region to region and require extensive knowledge of local regulations. Therefore, interpreting legislation, complying with local rules, and managing monthly payroll operations in China can be complicated and time-consuming for foreign-invested companies.

MSA offers full payroll services to reduce time and costs, streamline your monthly operations, and ensure you comply 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 complex tax framework, and foreign companies are required to calculate, declare, and pay the IIT 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 salary increases 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 significant 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 in determining their tax liability and obligations, calculating the individual income tax, and supporting the tax filing procedures.

China Social Security

Companies must 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. In addition to Social Security, the employee (Chinese nationals) must 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.

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China Payroll Brochure

The ideal China payroll solution your business needs!

For a comprehensive solution that can improve your business starting from 1 employee to several hundred, this solution can help you do the following:

Download our brochure now and learn more about how our payroll software can help your business stay connected.