Setting up and maintaining a Taiwan payroll
Taiwan possesses an advanced economy, a well-educated population, and expertise in many high-tech industries such as microchips, making it a common target country for foreign businesses looking to expand into Asia.
An important part of any expansion into Taiwan is hiring employees locally, which means establishing and maintaining a Taiwan payroll. To do this, you’ll need to have a good understanding of Taiwan’s complex employment laws and the overall payroll procedure. Many organizations choose to outsource this difficult phase.
At Horizons, we offer full Taiwan payroll outsourcing services for organizations expanding into the country, whether you have already registered a legal entity in Taiwan or not.
Why choose the Horizons payroll solution?
If you have an entity
If you have registered an entity for your organization in Taiwan, then we provide outsourced payroll support to help you establish and manage your Taiwan payroll. In addition, we can handle HR, contracts, and legal compliance to ensure you are fully equipped to hire locally.
This level of outsourcing is a good choice for any company that already has an entity in Taiwan and could benefit from payroll support.
If you don’t have an entity
For organizations who haven’t yet established an entity in Taiwan, we offer a comprehensive payroll outsourcing service using our Taiwan PEO to act as employer of record, while also taking care of HR, contracts, and legal compliance.
This flexible service gives you all the key benefits of hiring locally in Taiwan without the risk.
Fast, reliable, and compliant expansion into Taiwan
Reliable delivery
We guarantee that all payments will be on time, your data will be secure, and you can be up and running within just 48 hours.
Established presence
Our in-country subsidiary will act as employer of record, offering you a presence in Taiwan for legal local employment.
Flexible solution
Our team will manage all of the admin, payroll, HR, and taxes, so you can focus on building your business in Taiwan.
Up-to-date compliance
We’ll ensure you stay fully compliant at all times with the laws laid out in Taiwan’s employment regulations.
Single point of contact
Our centralized service gives you a single point of contact, simplifying the entire Taiwan employment process.
Proven Expertise
Our in-house teams of payroll and HR experts have already helped all kinds of organizations expand globally.
Taiwan payroll tax rates & laws
What are the rules for payroll and withholdings in Taiwan?
Taiwan’s unique taxes and withholdings systems can be difficult to follow. The country operates a progressive tax system, with higher earners paying a larger proportion of their income in taxes.
The income tax rate is between 5% and 40%, depending on income level, and employees must also contribute to national health insurance and labor insurance.
Employers are also responsible for contributing to the both labor insurance fund (around 6% of salary) and national health insurance (around 5%).
|
Labor Insurance
|
6.65%
|
|
Pension Fund
|
6.00%
|
|
Health Insurance
|
60% of the premium
|
|
Total Employment Cost
|
12.65% & health insurance premium |
|
Pension
|
5.1%
|
|
Labor Insurance
|
1.9%
|
|
Health Insurance
|
4.69%
|
|
Total Employee Cost
|
11.69% |
|
Up to 540,000
|
5.00%
|
|
540,000 – 1,210,000
|
12.00%
|
|
1,210,000 – 2,420,000
|
20.00%
|
|
2,420,000 – 4,530,000
|
30.00%
|
|
4,530,000 – 10,310,000
|
40.00%
|
|
Over 10,310,000
|
45.00%
|
Contract entitlements and termination rights
A formal contract of employment should always be provided when hiring locally in Taiwan. This contract should include details of entitlements, such as maternity and holiday leave, as well as terms of termination.
Employers must, by law, provide a minimum level of notice before termination of fixed-term contracts. This ranges from 10 days to 30 days, depending on the length of employment prior to termination.
How to set up Taiwan payroll outsourcing
To set up a payroll in Taiwan, you will first need to establish an in-country entity. This requires a minimum amount of funds ($500,000 NTD), along with the associated permits and documents. Additionally, you will need to open a Taiwanese bank account.
Alternatively, Horizons can act as your Taiwan employer of record, offering a cost-effective, time-saving option for organizations looking to hire locally. We’ll also handle the payroll setup and administration, so we can help you whether or not you have a registered entity in Taiwan.
Request a Proposal
Your all-in-one solution for Taiwan payroll outsourcing and global expansion
Horizons’ Taiwan PEO and employer of record services enable your business to quickly and compliantly begin trading in Taiwan. This allows your business to commence operations in Taiwan in as little as 48 hours, and has the potential to save you up to 82% in expansion costs, whether or not you have a legal entity in the country.
Horizons can also manage your company’s payroll, benefits, and expenses in Taiwan. Additionally, we can oversee HR duties, as well as employment and tax compliance. And as the only global PEO with an in-house recruitment team, Horizons will source, hire, and onboard your local workforce.
