Each Organization should open an public insurance consideration to pay public insurance to the workers according to China's work rules. You have two choices, delegate to FESCO or sign agreements with workers by you Organization without FESCO. Our offer is to do it yourself, since FESCO charges extra expertise fees per personal per months. Besides, to be honest, a lot of personnel welfares provided by FESCO are governmental ones; you can seek the expertise of employees at a relatively cheaper then at the beginning. If in the future you want to offer your personnel more benefits, than you can change to FESCO.
The work you need to do after company setup: Cultural insurance signing up, consideration opening to the Labor institution and bank, Labor contract planning, staff's personal consideration transfer in & out, monthly public insurance computation and conditions, data of income & incomes, issue personal income tax document to personnel, annul re-declaration of the staff's incomes. One thing need to outline to you is the price for seek the expertise of a personal in the Far East; you are required for at least 4 kinds of insurance for each person:
1. Retirement living fund
2. Lack of employment insurance
3. Compulsory medical insurance
4. work-related Injury insurance
For example, if you seek the expertise of a personal, with the basic income of RMB 5,000 monthly, that indicates, the personnel can get (5000-(8%+1%+2%)*5000)= 4450 on hand finally (ignore the IIT), your organization's real price is assessed as (5000+ 5000*(22.5%+2%+12%+0.5%))=6850.The personal aspect of 550 plus the enterprise aspect of 1850, in total 2400, should be paid to work institution monthly. So when you seek the expertise of new workers, just take care about that, if some people said they want to get income after tax, that indicates you will afford the extra price of public insurance and tax.
CBIZE Business Services Ltd. established in year 2002, has over eight years' experience of direct overseas financial commitment. The core members of CBIZE groups are from big 4 sales firms, famous financial commitment banks, and management referring with organizations with rich encounters in the enterprise operation of overseas corporations.
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