Payroll Calculation for Chinese Employees.pdf

Payroll Calculation for Chinese Employees Judy Qu 2013-12-10 Table of Contents 1. Main Content 1.1 China Social Insurance System 1.2 Individual Income Tax 1.3 Calculation: Income After-Tax 2. Judy’s Contact Information @ Judy Qu 1.1 China Social Insurance System @ Judy Qu China Social Security System • Hu Kou – Place of Origin, having an impact on TERM of EMPLOYEMENT and INSURANCE STANDARDS. • Employment – Labor Contract – Labor Dispatch – Form of Employment: Full time, part-time, internship, freelance • Social Security Insurance – One province, one policy – Compulsory – Policy in Shanghai • Urban/Residence Permit/Non-Residence • Small Town/Self-Employment/Unemployment @ Judy Qu Urban Residence Permit Social Security (Shanghai Standard) Personal Company Social Security Calculation Base Total Share Share Old Pension •Base: average monetary 8% 22% 30% Medicare monthly Income of employee 2% 12% 14% for the previous year Unemployment •Minimum: 60% of base 1% 1.7% 2.7% Housing Fund •Maximum: 300% of base 7% 7% 14% Work-related •Time of adjustment: April except for housing Fund