Key Considerations - Outsourcing Payroll Services In China

Payroll processing is one of the most important challenges for any company. It is therefore not surprising that multinationals as well as small- and middle-sized companies are outsourcing this task. But what is it that you need to consider before taking this step?

There are quite a lot of reasons why a company outsources its payroll: cost savings, productivity, reliability, accuracy, insight, flexibility, and so forth.  It makes even more sense when your company operates in a foreign country. We see quite a lot of European and American companies in China going for this option. In addition to the above-mentioned reasons, foreign companies are often happy to leave it to professionals when it comes to interpreting Chinese payroll procedures and the labor law.  

China payroll outsourcing services have grown over the years precisely because foreign companies (and increasingly Chinese companies) feel more comfortable when they can outsource this kind of tasks. 

However, you could argue that you prefer hiring your own payroll specialist(s) because you want to keep this kind of work (and knowledge) in-house. It is a fair point. But you will have to compare your own solution to the outsourcing option because no one likes to waste money or slow down their own office. 

Also, many foreign companies have only a small team or just one person in charge of accounting and administrative work in China. Hence, you run the risk of being too dependent on certain employees. And even if your payroll manager is very trustworthy and experienced, you still could run into trouble with your staff and the government if sick leave or an accident results in delayed paychecks and mishandled paperwork.

When it comes to payroll, play it safe, especially in China. Find a reliable payroll outsourcing company. This will free your time so that you can focus on more productive things.

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