FastLane Group
‘ Together We Build Better Business ’
How to Manage Your
Payroll and
Other Hong Kong
Employer Obligations
FastLane Group I How to Manage your Payroll and Other Hong Kong Employer Obligations
About FastLane
The Fastlane Group was founded in
2013 as an accountancy and advisory
firm that combines innovation and
technology to expert professional
services within the SME market, with
a particular focus on Entrepreneurs,
Startups, Fast Growing Technology
Companies, Startup Angel Investors
and Venture Capitalists. The Fastlane
Group provides best in class service
for businesses wishing to launch and
operate in Hong Kong, ensuring they
maintain that financial and compliance
needs as regulated in Hong Kong.
Offering a diverse range of professional
services including accountancy,
auditing, company formation and
payroll management and HR advisory
assistance, the Fastlane Group is able
to provide a holistic and comprehensive
suite of services for our clients.
The Fastlane Group currently supports
over 500 companies and is experiencing
rapid growth with business partners and
supporting networks.
Our Mission
We strive to establish a secure and
rewarding partnership with our
customers to enable successful business
operations within the SME market in
Hong Kong.
We facilitate and introduce our
customers to cutting edge technologies
across a suite of professional services,
allowing the autonomy to build efficient
and effective organizations.
We are a business builder, professional
advisor and accountant.
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Disclaimer
For more information or to contact
FastLane Group on Company
Formation, please email:
This material has been prepared for
informational purposes only, and is not
intended to provide, and should not be
relied on for, tax, legal or accounting
advice. You should consult your own tax,
legal and accounting advisors before
engaging in any transaction.
hello@fastlanepro.hk
FastLane Group I How to Manage your Payroll and Other Hong Kong Employer Obligations
Contents
1
Payroll
2-8
What is Payroll?
How is Hong Kong Payroll Performed?
Mandatory Provident Fund (”MPF”)
Online Payroll Software
Payroll Outsourcing Services
2
Employer Obligations
9
Reporting Obligations
Liability for Compensation for Work Injury and Occupational Disease
3
Employment Contracts
4
Leave Entitlements
10
11-14
Rest Days
Statutory Holidays
Paid Annual Leave
Sick Leave
Maternity / Paternity Leave
5
Professional Employer Organisations
15-16
What is a PEO?
How Do PEO’s Work?
What Are The enefits of Using a PEO
6
FAQ
17-18
FastLane Group I How to Manage your Payroll and Other Hong Kong Employer Obligations
1
Payroll
Payroll
Business owners, regardless of the size of
their business, must know how to manage
their payroll process and records. Proper
management of a payroll process will not
only ensure that their employee wages are
accurate, but will also help maintain compliance with Hong Kong’s various
employment regulations.
In this eBook, we look to provide guidance
on the Hong Kong payroll process and other
employer obligations, and how a Hong Kong
company can best manage these matters.
1.0
What is Payroll?
Payroll refers to the list of employees that
receive compensation from their employer
for their services rendered. It also refers to
the total compensation that employees are
entitled to receive during their employment.
1.1
How is Hong Kong Payroll Performed?
In Hong Kong, payroll is typically processed
on a monthly basis according to the terms
set in the employees employment contract.
To determine an employee’s total compensation, various factors are often taken into
consideration. This includes the number of
hours an employee has worked in a set time
period, their benefits or payment arrangements.
.
An average payroll takes more than a few
days to process. Utilizing accurate and
current payroll data can significantly reduce
the payroll processing time, especially for
large and complex payrolls. To help facilitate
efficiency, organizations may benefit from
engaging a professional service firm to assist
in their monthly payroll calculations.
Click here or scan the code below for
our blog “ Cloud Payroll: How Cloud
Strategy Helps Businesses”
2
Payroll
1.2
Mandatory Provident Fund (“MPF”)
Click here or scan the code to see the
Payroll and & MPF services we offer
MPF’s are compulsory retirement schemes / pension funds that are created by
the Hong Kong government and are
provided by approved private organisations. MPF’s are a key aspect of Hong
Kong payroll calculations and are guided
by the Mandatory Provident Fund Schemes Ordinance (“MPFSO”)
In accordance with the MPFSO, Hong
Kong employees and their employers are
required to make monthly contributions
to the employee’s MPF scheme, making
MPF calculations a key component of
payroll calculations. MPF payments are
made in accordance to an individual’s
salary and period of employment.
MPF’s are only intended to cover individuals who
are either employed in or are from Hong Kong. To
the extent that an employee is working outside of
Hong Kong, they may be covered under the MPF
system if they can provide sufficient evidence of a
connection between themselves and Hong Kong.
What is Considered a Sufficient Connection to
Hong Kong?
A Hong Kong resident employed in Hong Kong by a
company engaging in business in Hong Kong to
conduct work outside Hong Kong for a limited
period should generally be considered as having a
sufficient connection to the city. Such examples
include aircraft crews and pilots, cross-boundary
lorry drivers and professionals on overseas
assignments.
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FastLane Group I How to Manage your Payroll and Other Hong Kong Employer Obligations
Payroll
What are Employers Obligations Under the
MPF Scheme?
Employers have a range of obligations they
must meet to ensure that they are properly
supporting their employees MPF schemes.
Firstly, they must complete the one-time
obligation of assisting their employees in
opening MPF accounts. After, they must meet
ongoing obligations of remitting contributions
to their employees MPF schemes once every
contribution period (generally the wage
period).
To make payments to their employees, employers are required to calculate their employee’s
relevant income and the amount of mandatory
contribution that must be made for each
contribution period. The employer must then
deduct the calculated amount from their
employee’s income and remit that sum to their
MPF account.
Employers and employees are each required
ted amount does not exceed 15% of their
employees’ total emoluments.
to make regular mandatory contributions of
5% of the employee’s relevant income to an
MPF scheme, subject to relevant income levels.
For a monthly-paid employee, the minimum
and maximum relevant income levels are
HKD 7,100 and HKD 30,000 respectively.
‘Relevant income’, as defined by Hong Kong’s
Mandatory Provident Fund Schemes Authority
(“MPFA”), refers to all monetary payments paid
or payable by an employer to an employee.
Such payments include wages, salary, leave
pay, fees, commissions, bonuses, gratuities,
perquisites or allowances as outlined under
Chapter 57 of the Hong Kong Employment
Ordinance.
Employers can claim tax deductions on their
mandatory MPF contributions if the contribu-
Employee obligations
Employees do not face as many compliance
obligations as their employers do. However, it
is vital for employees to ensure that they make
the regular mandatory contribution of 5% of
their relevant income to their relevant scheme
as mentioned above.
4
Payroll
Are There Exemptions Under an MPF Scheme?
Not all employees working in Hong Kong must
be enrolled under an MPF scheme. Expatriates
residing in Hong Kong for employment purposes can obtain permission to be exempted by
the Hong Kong Government. Permission can
only be granted if the employee in question is
either a member of an overseas retirement
scheme, or will reside in Hong Kong for a
period of 13 months or less.
Non-compliance
In the event an employer fails to adhere to
their MPF obligations, the Mandatory Provident
Fund Schemes Authority (“MPFA”) will issue the
employer with a “surcharge notice”. This notice
will impose a 5% surcharge on default contributions and the surcharge received will go
entirely to the employee’s MPF account.
Defaulting on contributions is a criminal
offence and the defaulter is liable to a maximum penalty of a HKD 450,000 fine and
imprisonment for four years. The MPFA can
also impose a financial penalty of HKD 5,000 or
10% of the default amount, whichever is
greater, on the defaulting employer.
Click here or Scan the code for our blog “Hong
Kong MPF Contribution Rules and Regulations”
5
FastLane Group I How to Manage your Payroll and Other Hong Kong Employer Obligations
Payroll
1.3
Online Payroll Software
Many businesses typically utilize manual
payroll processes whereby manual payroll
calculations are performed each day. Unfortunately, this traditional approach is no longer
the most efficient way for a company to
manage their payroll as the process is time
consuming and susceptible to calculation
errors. As with any business, the penalty for
incurring such mistakes can be very costly.
4. Payroll records and slips are made as
instructed and specified by the users
5. Payroll reports and tax filing information
calculated will become available for the users
Online payroll software introduces an efficient
alternative to traditional manual processes.
Utilizing cloud-based technology, third party
softwares are made available to their users
over the internet.
In recent years, such software has seen
increased adoption and has become the
foundation for how businesses operate. Such
applications can range from accounting tools
like Xero to payroll focused tools such as
Talenox and Gpayroll. Because of developments in cloud strategy, businesses are now
able to access IT infrastructure that they
previously would not be able to afford.
How Does an Online Payroll Software Work?
Regardless of the application, online payroll
softwares will follow the below process:
1. Users will visit the website of the online
payroll software and will log into their secure
portal
Check out FastLane’s partners of
online payroll tools, Gpayroll and
Talenox!
2. Users will enter their employee’s work hours
and leave information for the relevant time
period
3. Payroll and MPF is calculated automatically
in the portal and quickly processed
6
Payroll
How Online Payroll Software can Improve the
Payroll Process
As previously mentioned, cloud-based online
payroll tools such as Talenox and GPayroll grant
users the ability to move their payroll process
online. Transitioning to an online payroll tool
allows businesses to enjoy the following
benefits:
Cost Advantages
Greater Focus on Core Areas of Business
Online payroll software lets companies
automate their payroll calculations and the
payments made to their employees, tax
authorities and any third parties and reduce
processing manpower.
Improved Financial Control
Greater control over costs can also be achieved
because users can subscribe to varying pricing
plans to suit their business needs. By considering the number of users and employees who
will utilize the online payroll software,
businesses can adjust the functionality of the
software as their businesses further develop.
As dictated by Hong Kong Company Law, it is
the employers responsibility to ensure that their
statutory filings, such as MPF and year-end tax
filings, are submitted punctually and without
error. Companies who discover errors in their
statutory filings must dedicate additional
resources to remedy these inaccuracies.
Fortunately, online payroll softwares provides
auto-regulatory compliance features. Such
features provide users with frequent
compliance updates and also automatically
implemented during payroll processing. These
systems can simplify the steps employers must
take to ensure that they are aware of, and can
act accordingly to, any new legislative
developments in respect of compliance matters.
Increased Efficiency
What to Look for in an Online Payroll Software?
Users who subscribe to an online payroll
software will enjoy up-to-date versions of the
software at all times and will not be required to
incur the extra costs commonly associated with
system upgrades commonly found in traditional
payroll softwares.
Online payroll tools typically provide their users
with the ability to utilize electronic payslips,
allowing employers the luxury of saving time
and money usually associated with managing
and distributing hard-copy payslips.
Manual data entry is a payroll related task
notorious for being a time-consuming endeavor.
However, online payroll tools allow users to
download templates where they can upload and
consolidate all of their company’s employee and
payroll related information. These templates
have been designed around the concept of
efficiency and ease of use. The consolidated
When identifying an online payroll software to
use, careful consideration must be made on the
key features provided. Typically, an online
software must provide payroll calculation
functions and statutory reporting features.
Popular online payroll softwares such as
Talenox and Gpayroll allow users to enjoy
additional useful functions such as different
types of leave entitlement settings, online leave
request and approval and company wide leave
calendar.
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FastLane Group I How to Manage your Payroll and Other Hong Kong Employer Obligations
Payroll
1.4
Payroll Outsourcing Services
Payroll outsourcing services have gained
popularity in recent years as it allows companies to enjoy quality services by professional
payroll firms at competitive rates and allows
the in-house HR personnel to focus on activities such as recruitment, compensation
reviewand training.
Benefits to Outsourcing Payroll
Much like online payroll tools, outsourcing a
payroll process to a professional payroll firm
can allow a business to concentrate on their
core business activities. This frees up human
resources and accounting personnel to work
more on strategic tasks that could ultimately
affect your bottom line. Repetitive tasks will no
longer require hours being taken away from a
company’s key management. Employers only
need to make contact with their outsourced
payroll specialist by approving the pay-run for
each pay period.
According to Talenox, an online payroll software company, your staffs knowledge on local tax
and labour laws are one of the key considerations to be made when deciding whether to
utilize a professional payroll firm. Outsourcing
to a professional payroll specialist well versed
in local regulations can reduce the risk of
non-compliance and provide a greater peace
of mind. Confidentiality may also play a role
when it is preferred that personal records,
salary and other payroll details not be disclosed to internal staff members.
Click here or Scan the code for our blog “How HR
Software Systems Can Improve Your Payroll
Process”
8
FastLane Group I How to Manage your Payroll and Other Hong Kong Employer Obligations
2
Employer Obligations
Employer Obligations
When building a team and managing staff,
Hong Kong companies have various employer
obligations that they must adhere to. These
obligations are dictated and governed by
various ordinances and can broadly be categorized into the categories below.
According to the Hong Kong Labour Department, employers should follow the minimum
insurance cover when taking out employees’
compensation insurance:
2.1
Reporting Obligations
When a Hong Kong company has hired an
employee, they must notify the Hong Kong
Inland Revenue Department (“IRD”) within
three months of the staff’s employment. Upon
termination of a staff, sufficient notice per the
employment contract must be given (though
no less than seven days is common).
Hong Kong employers are also required to
maintain proper records of their employee’s
wage and employment history, and all relevant
accounting and payroll records must be
maintained for at least seven years. In addition,
employers must report remuneration paid to
employees on an annual basis.
2.2
Liability for Compensation for
Work Injury and Occupational Disease
Under Hong Kong’s Employees’ Compensation
Ordinance (“ECO”), no employer shall employ
any employee unless the company has an
insurance policy in place to cover any potential
injuries or liabilities incurred in respect of all
their employees. Employers who fail to comply
with the ECO to secure an insurance cover are
liable to a maximum fine of HKD 100,000 and
imprisonment for two years.
As it is the employer’s responsibility to ensure
that adequate coverage is available for their
employees’, it is recommended to notify an
insurer when developments or issues arise.
Unlike ECI which is mandatory in Hong Kong,
health insurance is not. The decision on
whether or not to provide employees with
health insurance lies with the employer.
Despite not being mandatory, the vast majority
of Hong Kong businesses provide health
insurance to their employees, though the level
and extent of the coverage varies greatly.
Health insurance plans can be purchased for a
group of individuals from providers.
Hong Kong health insurance schemes
generally provide coverage for the following
categories:
Hospital / Inpatient
Outpatient
Dental
Worldwide evacuation
9
FastLane Group I How to Manage your Payroll and Other Hong Kong Employer Obligations
3
Emloyment Contracts
Employment Contracts
Employment in Hong Kong follows the rules
set by Hong Kong’s Employment Ordinance.
Generally, the terms set in employment
contracts must satisfy the minimum entitlements stated in the Employment Ordinance
regarding statutory holidays, MPF, sick and
maternity leave, and severance.
In addition, when drafting the terms of an
employment contract, while there are no
explicit legal guidelines pertaining to probationary periods, Hong Kong’s Labour Department
suggests a maximum probationary period of
three months. In the event that a firm hires a
foreigner, that individual must have a valid
work visa to be able to work in Hong Kong. It is
the employers’ responsibility to apply for a
valid work visa on the employee’s behalf before
he or she can commence their employment in
Hong Kong.
Click here or Scan the code below for our blog
“Hong Kong Visa: Obtaining Employment in Hong
Kong”
10
4
Leave Entitlement
Leave Entitlement
In accordance with Chapter 4 of Hong Kong’s
Employment Ordinance, “an employee shall
enjoy rest days, statutory holidays and paid
annual leave during employment”. Employees
are entitled to various forms of leave, with each
variation of leave structured around factors
concerning eligibility. Although not all forms of
leave provide payment, many do. As such, leave
entitlement is a vital consideration which must
be made during the payroll management
process.
4.1
Rest Days
4.2
Statutory Holidays
Employees of a Hong Kong company, regardless
of their length of employment, are entitled to
the following 12 statutory holidays:
1) The first day of anuary
2) Lunar New Year’s Day
3) The second day of Lunar New Year
4) The third day of Lunar New Year
5) Ching Ming Festival
Rest Days, as defined by the Employment
Ordinance, is a continuous period of not less
than 24 hours during which an employee is
entitled to abstain from working for their
employer.
In the event that an employer fails to grant rest
days to their employees, they will be liable to
possible prosecution and a fine of HKD 50,000.
Similar penalties can also be presented to
employers who compel their employees to work
on their designated Rest Days.
6) Labour Day, being the first day of May
7) Tuen Ng Festival
8) Hong Kong Special Administrative Region
Establishment Day, being the first day of anuary
9) The day following the Chinese Mid-Autumn
Festival
10) Chung Yeung festival
11) ational Day, being the first day of October
12) Chinese Winter Solstice Festival or Christmas Day (at the option of the employer)
Please note that the Hong Kong government
may change the dates of Hong Kong’ statutory
holidays.
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FastLane Group How to Manage your Payroll and Other Hong Kong Employer Obligations
4.3
Paid Annual Leave
In accordance with the Employment Ordinance, “an employee is entitled to annual leave
with pay after having been employed under a
continuous contract for every 12 months”. As
an employee extends their length of service
with their employer, they will also become
entitled to progressively increasing amounts of
paid annual leave, up to a maximum of 14 days
in accordance with the below scheme.
Leave Entitlement
In the event that any rest day or statutory
holiday falls within a period of paid annual
leave, the employee, those days shall be
counted as annual leave. In such situations, the
employer must provide their respective
employee with another rest day or holiday.
In addition, as the name suggests, employees
will be entitled to receive pay during their
annual leave entitlements. The daily rate of
annual leave pay is equivalent to their average
daily wages earned. If the respective employee
has been employed for a period of less than
12 months, then their annual pay leave shall
be the equivalent of their first day of employment.
There may be instances where an employee
may choose not to utilize their annual pay
leave, and instead receive payment. If an
employee has utilized leave entitlement which
exceeds 10 days, then they may receive
payment.
4.4
Sick Leave
Employees looking to utilize their paid annual
leave should consult their employers prior to
claiming their entitled paid annual leave for a
period of no less than at least 14 days in
advance. However, such a time period can be
waived if mutually agreed upon by both the
employer and employee.
When an employer grants their employees
paid annual leave, the manner in which the
paid annual leave is utilized is determined by
how many days the employee requests to
utilize. For the utilization of paid annual leave
not exceeding 10 days, the employee may
claim up to 3 days separately. However, if the
employee requests for paid annual leave
exceeding 10 days, then at least 7 of those
days should be granted consecutively to each
other.
©FastLane Group November 2019
A sick employee is entitled to claim Sick Leave
if they are employed under a continuous
contract. An employee is considered to be
employed continuously if they have been
employed by the same employer for a period
of four weeks or more. In addition, the employer must have worked at least 18 hours each
week in respect to their employment.
Upon meeting the eligibility requirements to
be entitled to Sick Leave, employers and their
employees should familiarize themselves with
the circumstances around the utilization of sick
leave allowances. Paid Sick Leave can be
divided into two categories - utilization of up to
36 days of Paid Sick Leave (Category 1) and
then 84 days (Category 2).
12
6
Leave Entitlement
Paid Sick Leave which falls under the first
category must be supported by recognized
medical certificates. Such certificates can be
issued by a registered medical practitioner,
registered Chinese medical practitioner or a
registered dentist.
For individuals who utilize more than 36 days
of paid sick leave, their subsequent paid sick
leaves will fall under Category 2. In this situation, such individuals are also required to
prepare medical certificates. However, brief
investigations of the employee’s treatment may
be conducted upon the employer’s request.
Generally, the daily rate of sickness allowance
is determined by calculating the sum equivalent of four-fifths of the average daily wages of
the employee for a 12 month period preceding
their day of sickness. In situations where an
employee is employed for a period of less than
12 months, then the sickness allowance should
be calculated based on their current length of
employment.
Employees who do not fully utilize their allocation of sick leaves are able to accumulate paid
sickness days if they are employed under a
continuous contract. Additional paid sick
leaves are accumulated at a rate of two paid
sick leaves for each completed month of the
employee’s first 12 months of employment.
Subsequent time spent employment will see
employees accumulate additional paid sick
leaves at a rate of four paid sick leaves for each
additional completed month. However, an
employee cannot accumulate more than 120
days of paid sick leave at any one time during
their employment.
Click here or Scan the code for our blog “Demystifyin ey
loyee ene ts
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FastLane Group How to Manage your Payroll and Other Hong Kong Employer Obligations
4.5
Maternity / Paternity Leave
New parents or parents-to-be are entitled to the
maternity and paternity leave under the below
circumstances.
Maternity Leave
Female employees under a continuous contract
are entitled to maternity leave if they provide
notice to their employer regarding their pregnancy,
and their intention to take maternity leave. Female
employees will thus be entitled to the following
periods of leave:
A continuous period of 10 weeks’ maternity leave
If confinement occurs later than the expected date
of confinement (the delivery of a child), a further
period equal to the number of days from the day
after the expected date of confinement to the
actual date of confinement
An additional period of leave for not more than
four weeks on the rounds of illness or disability due
to the pregnancy or confinement
In accordance with Chapter 6 of the Employment
Ordinance, a pregnant employee may commence
their maternity leave from two to four weeks
before the expected date of confinement upon
discussion with their employer.
Pregnant employees are also eligible for paid
maternity leave if they meet the following conditions:
She has been employed under a continuous
contract for not less than 40 weeks immediately
before the commencement of their scheduled
maternity leave
She has given notice to her employer of her
pregnancy and intention to take maternity leave
after her pregnancy has been confirmed
Leave Entitlement
She has produced a medical certificate
specifying the expected date of confinement (if
required by her employer)
Paid maternity leave should cover a period of 10
weeks, at the same rate of normal pay for the
employee.
Paternity Leave
Male employees are entitled to 5 days of
paternity leave for each confinement of their
spouse/partner. Paternity leave can only be
granted if the following conditions have been
met:
The male employee is the father of a new-born
child, or is a father-to-be;
The male employee is employed under a continuous contract; and
The male employee has given the required
notification to their employer. The terms surrounding how a male employee may utilize their
paternity leave is similar to that of a female
employee with their respective maternity leave.
Soon to be fathers must notify their employer of
their intention to take paternity leave at least 3
months before the expected due date of delivery
of the child. They must also notify their employer
of the dates that he wishes to take paternity
leave. If a male employee fails to give the above
mentioned 3 months’ advance notice to their
employer, he must notify his employer at least 5
days before the date of his paternity leave.
Male employees will be entitled to payment
during their paternity leave if they have been
employed under a continuous contract for no
less than 40 weeks, immediately before the start
date of their paternity leave. In addition, they
must provide required documents to their
employer within either (i) 12 months after the
first day of paternity leave taken; or (ii) within 6
months after cessation of employment if the
male employee ceases to be employed). The
14
5
Professional Employer Organizations
Professional Employer
Organizations
To achieve and sustain growth, companies
must remain lean and efficient. Oftentimes,
this entails minimizing the costs associated
with hiring and the administration of the staff.
To address these issues, companies could
utilize the services of professional employer
organisations (“PEO”) to handle their business
operations.
5.1
What is a PEO?
As a result of the service contract, a PEO will
assume greater employer responsibilities than
what is typically achieved through general HR
outsourcing. For instance, the staff contracted
out by a Hong Kong PEO can ensure that a
client is compliant with all Hong Kong employer obligations as dictated by Hong Kong
Company Law. Furthermore, they can provide
monthly services such as salary and tax
calculations, payroll calculation and management in addition to handling aspects regarding
leave entitlement.
A PEO is an entity that provides employee
management services to companies. A PEO
essentially serves as an outsourced functional
team supported by an external professional
HR solution provider under a specific service
agreement. Such services can include all
aspects of employee administration, payroll
processing, work permit, worker compensation
insurance, benefits management and recruitment.
5.2
How Do PEO’s Work?
A PEO will contract out staff to clients to
perform designated tasks and are often
recruited under the client's instructions. The
client and PEO essentially enter into a service
contract whereby the PEO will assume responsibilities for the client’s HR-related employer
responsibilities whereas the client will continue
to control their operations and employee
functions.
©FastLane Group November 2019
15
FastLane Group How to Manage your Payroll and Other Hong Kong Employer Obligations
Professional Employer Organization
5.3
What Are The Benefits of Using a
PEO?
A PEO can help companies regardless of
whether they are undergoing expansion into a
new market, or are trying to provide their staff
with competitive benefits and flexibility without
having to build a full HR infrastructure.
In addition, these are the typical reasons for why
a company will engage a PEO are as follows:
Support company’s operations in a new market
within a few days
The benefits are most evident during a global
business expansion into a new country or when
pursuing the rapid staff hiring within a short
timeframe. As PEO’s can assist in all aspects
related to HR, they can help formulate procedures and strategies for an effective and quick
setup process and can utilize staff already
contracted by the PEO. For example, the contracted staff of a Hong Kong PEO will be knowledgeable on local regulations, they can also advise
clients on their employer obligations and will
minimize potential risks associated with
non-compliance.
Hire local and overseas employees quickly with
minimal obstruction
Reduce time spent processing HR and administrative tasks
Become compliant with the various employer
and compliance obligations
Provide clients access to cost-effective, comprehensive benefits
Enjoy the HR infrastructure established by the
external professional HR solution provider
Click here or Scan the code below for our
blog “What is a PEO and How Does a PEO
Model Help Your Business?”
16
FAQ
6
FAQ
FastLane can provide our experience and
expertise to ensure that businesses do not
need to dedicate excessive resources to
handle their administrative and HR tasks.
Below are the most frequent asked
questions FastLane has encountered.
6.1
When should you outsource
your payroll process?
Outsourcing payroll processes lets
professional payroll service providers
handle all your payroll, and even possibly
HR related tasks. Doing so frees up
resources for more strategic tasks that
can ultimately affect a company’s bottom
line as repetitive tasks will no longer
require hours of attention from a company’s key management.
When considering outsourcing a payroll
process, companies should examine their
internal resources. What is my in-house
capability Is my HR staff familiar with
local tax and labour laws? Does my
payroll contain confidential information
that I’d rather my internal teammates in
HR not be privy to? If any of these questions make you consider outsourcing
your payroll, then perhaps it is time to do
so!
6.2
What are the benefits of using
cloud-based / online payroll software?
Cloud-based / online payroll software
offers a diverse range of benefits not
commonly found in traditional payroll
systems. Very simply, users of a cloud-based payroll software can enjoy cost
advantages, increased efficiency, improved financial control and can devote
more time and resources to business
driving activities.
6.3
What is our fee for payroll services?
FastLane charges a setup and monthly
processing fee in accordance with our
clients headcount. Employees will only be
counted towards the headcount when
they are onboarded. Payroll, MPF calculations, tax administration and related
off-boarding termination filing services
are included in our monthly fee. Other
advisory fees are based on fixed fee
quotations on a case by case basis.
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FAQ
6.4
6.6
What is an Employee’s
Compensation Insurance (“ECI”)?
What is Hong Kong’s stance on
health insurance and how do I
enrol my employees in one?
Under Hong Kong’s Employees’ Compensation
Ordinance (“ECO”), no employer shall employ
any employee unless the company has an
insurance policy in place to cover any potential
injuries or liabilities incurred in respect of all
their employees. Employers who fail to comply
with the ECO to secure an insurance cover are
liable to a maximum fine of HKD 100,000 and
imprisonment for two years.
6.5
How do I enrol into an MPF
scheme?
According to the MPFA, both full-time and
part-time employees are covered by the MPF
system and it is the employer’s responsibility to
enroll their employees in an MPF scheme within
the first 60 days of their employment. To do so,
employers should consult the MPFA’s List of
MPF Approved Trustees for qualified MPF
schemes. The employer, upon selecting one or
more of the MPF schemes available on the
market, should offer them to their employees.
Self-employed individuals must also enrol
themselves into an MPF scheme within 60 days
after becoming self-employed. However,
exempted persons are not required to do so.
Unlike ECI which is mandatory in Hong Kong,
health insurance is not. The decision on whether
or not to provide employees with health insurance lies with the employer. Despite not being
mandatory, the vast majority of Hong Kong
businesses provide health insurance to their
employees, though the level and extent of the
coverage varies greatly. Health insurance plans
can be purchased for a group of individuals from
providers.
Hong Kong health insurance schemes generally
provide coverage for the following categories:
Hospital / Inpatient
Outpatient
Dental
Worldwide evacuation
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18
FastLane makes sure your staff are well
looked after with the right set up.
Talk to one of our experts today!
Fastlanepro.hk
hello@fastlanepro.hk