A payroll service in Taiwan handles payroll, tax, and compliance, ensuring businesses meet Taiwanese labor laws and superannuation requirements. It simplifies expansion by managing payroll operations, allowing companies to focus on growth.
Managing Taiwan payroll requires an understanding of local labor laws, tax regulations, and social security contributions. Employers must ensure compliance with salary payments, mandatory deductions, and employee benefits. This guide provides a detailed overview of Taiwan payroll processes and highlights how businesses can benefit from outsource payroll services to ensure accuracy and efficiency.
Employers in Taiwan must adhere to strict labor and tax regulations to ensure compliance. Payroll management involves salary disbursements, tax deductions, and contributions to social security funds.
Employers must pay salaries at least once a month and provide detailed payslips outlining wage breakdowns. Salary payments must be made in New Taiwan Dollars (NTD) unless otherwise agreed. Late salary payments can lead to legal disputes and fines.
Taiwan’s labor system mandates employer and employee contributions to various social security programs, ensuring financial protection for workers.
Employers must contribute to the Labor Insurance Fund (LIF) and National Pension Fund (NPF). Contribution rates are as follows:
Late or missed payments can result in penalties and legal action.
Taiwan’s National Health Insurance (NHI) program requires employer and employee contributions. The standard contribution rate is 5.17% of an employee’s salary.
Employers must deduct and remit employees’ income tax to Taiwan’s Ministry of Finance.
Taiwan has a progressive income tax system, with rates ranging from 5% to 40% based on annual earnings. Employers must calculate, withhold, and report taxes accurately to avoid non-compliance penalties.
Employers must submit tax declarations and annual payroll reports to the Taiwan National Taxation Bureau. Inaccurate or late tax reporting may lead to audits and financial penalties.
Employers in Taiwan must provide statutory benefits to employees, ensuring compliance with labor laws.
Employees are entitled to paid leave based on tenure:
Employers must also observe national holidays, providing paid leave as required.
Employers must deduct income tax, pension contributions, and labor insurance from employee wages. Any errors in deductions can lead to payroll disputes and penalties.
Failure to comply with Taiwan payroll regulations can lead to severe consequences, including fines and legal action.
Managing Taiwan payroll can be complex, and non-compliance can lead to costly penalties. AYP offers outsource payroll services to ensure seamless and compliant payroll processing.
AYP handles payroll administration, tax compliance, and employee benefits, allowing businesses to focus on core operations without worrying about payroll complexities.
Through AYP’s EOR services, businesses can expand into Taiwan without setting up a local entity. AYP manages employment contracts, payroll, and compliance with local labor laws.
AYP’s outsource payroll services streamline salary payments, tax deductions, and social security contributions. Our payroll experts ensure accuracy and compliance, reducing administrative burdens for businesses.
By partnering with AYP, companies can navigate Taiwan payroll efficiently, ensuring compliance while optimizing payroll management processes.
Employers must pay salaries at least once a month in NTD, with proper payslips detailing deductions and contributions.
Late tax payments can result in fines, interest charges, and legal action from Taiwan’s National Taxation Bureau.
No, businesses can use outsource payroll services or Employer of Record (EOR) services to manage payroll without establishing a local entity.
Taiwan does not have an MPF system like Hong Kong but requires contributions to the Labor Insurance Fund (LIF) and National Pension Fund (NPF).
AYP provides PEO, EOR, and payroll outsourcing services, ensuring compliance with tax, labor insurance, and salary regulations, helping businesses avoid penalties.
By leveraging outsource payroll services, businesses can simplify payroll management while ensuring full compliance with Taiwan payroll regulations.
AYP provides PEO, EOR, and payroll outsourcing services, ensuring compliance with tax, labor insurance, and salary regulations, helping businesses avoid penalties.
By leveraging outsource payroll services, businesses can simplify payroll management while ensuring full compliance with Taiwan payroll regulations.
