Guides - Human Resources & Payroll in China 2016

- Human Resources and Payroll in China 2016-2017 (5th Edition)

Step 4: Generation of all other payroll-related reports

The payroll calculations are now approved and the payroll processor can run the other reports. These

can include, but are not limited to, the following:

• Electronic funds transfer (EFT) file.

• Pay slips (printed on special security paper).

• General ledger file for uploading into the financial system d) Cost center report e) IIT online filing

document.

Step 5: Processing of reports

This will depend on the scope of the outsourcing work requested by the company. Usually, the

outsourcer will implement the following:

• The EFT file will be sent to the bank via the secure online portal using a password provided by

the bank.

• The pay slips are couriered to the offices or, in some instances, to the home addresses of employees.

• The ledger file is sent back to the company’s HR department, and then forwarded to the finance

team for consolidation into the general ledger.

• The cost center report is also sent back to the HR department to be relayed to management.

• The IIT online filing document is uploaded into the Tax Bureau software at the beginning of the

following month and subsequently filed.

Step 6: Transfer of funds

The final step is approval of the payment of salary via online banking (finance team only needs to

see the total amount, not the individual payments) and ensure that there are enough funds in the

account to cover the payment of salary, mandatory benefit and individual income tax. As a general

rule, the processing takes between six to ten working days each month, with the IIT online filing

happening at the beginning of the following month.

How to identify a reliable payroll processing agent

• Agents should handle all interactions with the local HR team through e-mail and in English,

allowing management to monitor the process.

• Agents should have a reliable software system that can meet the requirements of the company.

• Agents should not have direct contact with anyone but the members of the HR team at the

company and their supervisors.

• Agents should process the payroll from a remote location, preferably not the same city as the

client. Only one or two people should be involved in the processing work.

• Agents should not do any executive search operations as a side business; no company wouldwant

to entrust its employees’ salary records to a company that may misuse them for other purposes.