China payroll is city-specific: social insurance and housing fund bases differ by location, while Individual Income Tax follows national progressive rules. We manage multi-city China payroll with local contribution logic.
Why China payroll compliance matters
Employers operating in China must get social insurance, housing fund, and Individual Income Tax right every month. Errors create penalties, employee disputes, and delayed expansion. Teams usually choose either payroll outsourcing (if they have a local entity) or EOR (to hire without an entity).
Core compliance checklist
- Social insurance: Five social insurance types with city contribution bases and rates.
- Housing fund: Mandatory housing provident fund contributions where required.
- Individual Income Tax: Monthly IIT withholding with cumulative calculation approaches.
- Local filings: City bureau calendars and contribution declarations.
Payroll outsourcing vs EOR in China
Use payroll outsourcing when you already employ staff under your China company and need month-end accuracy. Use Employer of Record when you need to hire before incorporation, test the market, or deploy a small team quickly.
Common questions
Why do China payroll rates differ by city?
Social insurance and housing fund contribution bases and percentages are set locally, so Shanghai and Chengdu can differ materially.
Do you support multi-city headcount?
Yes. Each employee can be mapped to the correct contribution city.
Can foreign companies hire via EOR in China?
EOR can be used for compliant employment depending on your expansion model — talk to us about the right path.
Need China payroll or EOR support?
See our dedicated EOR & payroll outsourcing page for China, or request a quote.