Payroll outsourcing
service in China.

Acclime provides comprehensive and competent payroll outsourcing services for your China business. Our qualified and experienced team can help you systemise your payroll processes, be compliant with local laws and remove these time-consuming tasks from your team’s schedule.

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Payroll outsourcing service in Indonesia

Leave your payroll to
our in-country experts.

Enjoy the simplification of working with the in-country payroll experts. Through our online-managed payroll services, you can expect:

Integrated compliance

We calculate and process your payroll accurately, so as to free you of any payroll compliance worry

Robust reporting

Get a complete overview of your HR management and expenses in reports to allow you to keep on top of any issues

Online management portal

Seamlessly view and manage your company’s payroll through a self-service platform

Payroll services

Flexible and scalable payroll solutions.

Our payroll services cover all aspects of the payroll process and can be custom-configured and scaled to your company policy’s needs while offering economy of scale.

Payroll
A. Initial payroll setup
Provide us with your employee data and we will set up the payroll system to your specific needs, regardless of what compensation and benefits policy your company has (net or gross, taxable or non-taxable income, recurring or non-recurring payments).
What is included?
One-off
B. Monthly payroll services*
We will remind you monthly to confirm all employee details, such as salary, leave and more. We will then process the payroll calculations, statutory contributions, filings, salary payments, IIT calculations and other paperwork for you. You will only need to sign off on our preparation. Detailed reports, including payslips and other documents, will be available to you online on the client-service platform.
What is included?
Monthly
C. Helpdesk
Nominate an authorised person in your company to work with us, and we will provide that person with direct access to a dedicated representative to deal with any enquiries from your company or from employees.
Monthly
D. Year-end services
We will prepare and submit all the necessary year-end returns, filings and tax forms for each employee.
What is included?
Annually
Client self-service portal
Managing the payroll is easy and efficient with our cloud-based client self-service portal. With interfaces for employees (employee self-service) and management (management self-service), both parties have access to relevant information pertaining to them and can seamlessly manage:
- Employee data
- Employee attendance
- Requesting and managing leave
- Claiming expenses and more

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*Our monthly regular processing fees follow a tiered structure, where the average costs per employee will decrease as the total number of employees increases. The total monthly processing fees will be the sum of the costs for each tier. Your actual monthly fees will then vary based on the fluctuations in your headcount.

An irregular processing fee will be applied as required for any employee payment processing, which does not coincide with monthly regular payroll processing (off-cycle processing), e.g. religious festivities bonus, performance bonus pay-outs, incentives and more.

Payroll implementation process

Simple steps to implement your payroll.

1. Initial assessment

We expertly assess your payroll needs, select the required services and prepare commencement of the agreed services. We will identify and make recommendations on areas for improvement to make the payroll process more efficient.

2. Service blueprint

Once engaged for our payroll service, we will produce a payroll blueprint document. This outlines everything required in the payroll administration (such as including initial data migration, ongoing processing, calculation details, reporting requirements and employee services, and payroll calendar) and it serves as a reference for both parties.

3. Testing phase

We create a test environment featuring the customised payroll system to meet your requirements. We set up the system, migrate the employee data and integrate transaction data for comment and approval.

4. Parallel run & evaluation

Then, we run payroll processes and make comparisons with the previous payroll calculations. After performing quality checks and resolving any calculation differences, we work with you to make the switch to our payroll system.

5. Production

Your payroll system is set up precisely as required and is ready to begin service to your HR team and your employees.

Ongoing customer support from people who care about your team.

Engage with our professionals for exceptional payroll and individual income tax support. Even if your company is running without a hitch, we will continue to notify you when there are regulatory changes that could possibly impact your company.

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Acclime benefits

Why outsource your payroll to Acclime?

Reduced operating costs

Save expenses with our cost-effective payroll technology. There is no need to worry about any hidden costs as our fees are transparent and predictable. We can also decrease your spendings by combining it with other services such as HR, accounting and taxation.

Complete payroll solution

Our services will provide you with everything you will need to pay your staff accurately and on schedule, from calculating payroll and benefits through tax computation to payments, robust reporting and statutory compliance filings. Everything is customed to meet your company size and needs.

Effective communication & reporting

Make your work hassle-free and be in the loop of your payroll process with our effective payroll services, consistent reporting and communication through a single point of contact.

FAQ

Common questions.

How is Individual Income Tax calculated for employees in China?

Employers in China are responsible for withholding Individual Income Tax (IIT) monthly using the cumulative withholding method. The tax must be remitted to the local tax bureau within 15 business days after month end. For resident employees, comprehensive income is taxed at progressive annual rates after a standard deduction of RMB 60,000 per year:

3% on annual taxable income up to RMB 36,000
10% from RMB 36,001 to RMB 144,000
20% from RMB 144,001 to RMB 300,000
25% from RMB 300,001 to RMB 420,000
30% from RMB 420,001 to RMB 660,000
35% from RMB 660,001 to RMB 960,000
45% above RMB 960,000

Resident employees may also claim additional itemised deductions beyond the standard RMB 60,000, including child education, elderly care and housing loan interest, which reduce the effective tax burden materially. Non-resident employees are taxed monthly on China-sourced income only, using the same brackets applied on a monthly rather than annual basis. Employers are liable for any shortfall if IIT is incorrectly withheld. For a full breakdown of available deductions for foreign employees, see the IIT deductions for foreigners guide.

What are the social insurance and housing fund contribution requirements for employers in China?

All employers in China must contribute to the Five Insurances and One Housing Fund, covering pension, medical, unemployment, work-related injury and maternity insurance. Rates and salary caps are set by each city and adjusted annually, typically in July. In Shanghai, for example, the total employer contribution is approximately 27% to 29% of the employee’s contribution base, with employees contributing around 10.5%. The contribution base is capped at three times the city’s prior year average monthly salary.

Housing Fund contributions range from 5% to 12% per side depending on the city. Foreign employees are generally exempt from the Housing Fund and may qualify for further exemptions under bilateral social security agreements. Rates vary by city and are updated annually, so employers setting up outside Shanghai should confirm the applicable figures with the relevant local bureau. For a current breakdown by location, see the Chinese social security system guide.

What are the payroll compliance deadlines for companies operating in China?

China’s payroll compliance calendar has two monthly obligations and one annual filing. IIT withholding returns must be filed with the local tax bureau within 15 business days after month end, with specific dates set in the State Taxation Administration’s annual calendar to account for public holidays. Social insurance and housing fund contributions are due by the 15th of the following month through local bureau systems.

Late IIT payments attract a daily surcharge of 0.05% on the outstanding amount. In addition, resident employees must complete an annual IIT reconciliation for the prior tax year between 1 March and 30 June. Employers are responsible for supporting this process and maintaining full payroll records for audit purposes.

How does payroll work differently for foreign employees in China?

Foreign employees in China are subject to different IIT and social insurance obligations depending on their residency status, length of stay and nationality. Those who spend 183 days or more in China in a calendar year are treated as tax residents and subject to IIT on their worldwide income. Those below the 183-day threshold are taxed only on China-sourced income.

A six-year rule applies to non-domiciled residents. Foreign nationals who have been tax resident for fewer than six consecutive years are not taxed on overseas income, provided they leave China for more than 30 consecutive days in at least one of those years.

A preferential IIT policy has been extended through December 2027. Under this policy, eligible foreign employees may receive certain fringe benefits tax-free, including housing rental, children’s school fees and language training. Employers must track residency status carefully as misclassification can result in retroactive IIT adjustments. For detail on social insurance obligations and bilateral exemptions for foreign staff, see the Chinese social security coverage for expatriates guide.

How does the annual Individual Income Tax reconciliation work in China?

Employers withhold IIT monthly as a provisional estimate, meaning the final annual liability may differ from what was deducted. Resident taxpayers including foreign nationals who meet the 183-day threshold must reconcile their comprehensive income for the prior year between 1 March and 30 June. Those who overpaid receive a refund and those who underpaid by more than RMB 400 must settle the shortfall.

Filings can be submitted through the official IIT app, the national e-tax portal or via an authorised employer or agent. Employers are legally required to support employees who request assistance and must retain income and withholding records for audit purposes. For a full overview of year-end obligations, see the year-end payroll compliance guide.

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Manage your team’s payroll with a complete payroll solution tailored to your specific requirements.

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Payroll outsourcing
service in China.