Payroll Outsourcing in Hong Kong | INS Global
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Payroll Outsourcing in Hong Kong

Pay your Employees Across the Globe

Expanding into a new market like Hong Kong while hiring local talent can be a daunting process.

INS Global provides payroll outsourcing services worldwide that ensure each of our clients’ global employees is paid in a way that complies with complex local tax and insurance regulations.

Our services provide the safety of compliance and streamline their business practices.

You can focus on achieving your company’s goals while we take care of HR services and make sure your employees are paid accurately, punctually, and following local regulations.

Payroll Outsourcing in Hong Kong - Summary

How Payroll Outsourcing in Hong Kong Helps You

Assured Legal Compliance

INS Global’s team of local experts, with over 15 years of experience, can ensure that your company is fully compliant with every aspect of Hong Kong payroll regulations

Less Time and Cost

Save your business time and money by working with one partner that will handle all of your payroll needs

Rapid Delivery

You can ensure punctual monthly payments for all of your employees

Focus on Company Growth

By providing payroll outsourcing, recruitment, and contractor management services, a PEO takes care of local HR requirements necessary for your entry into a new market while you concentrate on increased growth

One Platform for Everything

A local PEO agreement covers every aspect of HR services, streamlined into one point of contact.

Guide to Payroll Outsourcing in Hong Kong

Organizing payroll in Hong Kong for a non-local company and ensuring that your employees are paid correctly and on time can become a costly and demanding process.

  1. First, you will have to set up a legal entity in Hong Kong to hire your employees.
  2. Then, you must open a bank account organized for your employees to be paid in the Hong Kong currency.
  3. Next, you need to ensure that your employee’s contracts comply with local laws and guidelines for issues like benefits, working hours, tax, and social security payments.
  4. Finally, the payroll process will need to be closely and constantly managed to ensure that your company is up to date on local regulations.

INS Global works with you, simplifying your payroll procedures into one basic agreement with our Hong Kong PEO.

We can act as your EOR in Hong Kong and perform all necessary payroll functions for your business through our local entity.

testimonial from Manuel Ramos

Testimonial

Manuel Ramos

TERAO ASIA

Managing Director

We think INS Global is a good solution about starting business in new and complex markets. Understanding the market doesn’t mean you need to set up a company immediately.

5/5

Overview of Payroll Taxes in Hong Kong

Many aspects of employment in Hong Kong are less regulated than in other jurisdictions, like the EU or the United States.

However, operating payroll will still require paying attention to local regulations for both foreigners and Hong Kong domestic residents.

In Hong Kong, there is no obligation for employers to withhold income tax from their employee’s salaries.
However, they must withhold social security contributions from their payroll and report how much is withheld to the Inland Revenue Department.

Additionally, employees must report their income to the Inland Revenue department whenever they file their annual taxes.

Social security obligations in Hong Kong will involve the following rates:

  • Employees will contribute 5% of their salary to the MPF (Mandatory Provident Fund)
  • Employers will also be required to contribute 5%
  • A minimum of HKD 7,100 should be contributed to the MFP, with a maximum of HKD 30,000 each month
For more information about payroll outsourcing in Hong Kong, as well as any other HR services we provide, contact us here.

How INS Global Benefits Your Company in Hong Kong

Organizing payroll for your global corporate structure is often a complex process fraught with complications and lengthy delays.
INS Global is your single point of contact necessary to meet all your needs for payroll outsourcing, PEO services in Hong Kong, invoicing, and tax administration services.
We provide you with the solutions that will enable you to focus on your expansion and success.

Social security obligations in Hong Kong will involve the following rates:

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Discover More Solutions in Hong Kong

FAQs

No, it is necessary to use a local entity abroad to comply with each country labor law.

Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.

The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become the employer of record of its abroad employees or use a PEO to act as the employer of record.

Liabilities may vary from country to country and include all the staff management responsibilities: labor contract issues, payroll management, and tax compliance, social security management, expenses claim declaration, hiring and termination
procedures, etc.

In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.