The Employer of Record (EOR) firms are the third party organisations that are engaged in the activity of hiring and pays the employees on behalf of the hiring organisation. The firms offering global employer services in China act as an employer basically for the purpose of taxation and the employees work for some other organisation. The top Employer of record firms in China is responsible for employment arrangement and administrative work and allows the company to efficiently and legally engage with workers located overseas without bringing any violation of the local laws pertaining to employment.
Here are the benefits of employing their services:
Quick
entry into the market
The EOR
companies help the foreign companies to enter the Chinese market in a short
span of time. With the help of these companies, the foreign companies can
easily hire the Chinese employees or an overseas employee to work for them. The
nominal employer for these employees will be the employer of record firm and
they will look after the HR and payroll contributions and related services.
Flexibility
The
global service company offers different solutions that depend upon the stage
where the company currently is. If, for instance, the company is looking for
hiring new employees and manage the payroll in the Chinese boundaries, then the
EOR firm can hire the employees irrespective of the company not having the
legal Chinese entity. If the company has an established existence, the payroll
issues can easily be managed by hiring the services of EOR firms. They can
easily take care of accounting and taxation services.
Compliance
China has some specific rules related to taxation and payroll and
depending on the type of industry and nationality, the companies are required
to follow them. The EOR company can help the company deal with the complicated
aspects related to Income tax, payroll tax, social security costs, withholding
tax, sales tax, and business tax and ensure that the company is 100% compliant
with the taxation rules.
No comments:
Post a Comment