What is Payroll?
Payroll refers to the compensation a business must pay its employees for a given period. These expenses are typically deducted from the gross income, lowering the company’s taxable income. It can be influenced by many variables such as overtime, back-pay salaries, sick leave, and more. As such, businesses must stay up-to-date on changes to payroll regulations in order to ensure compliance with local laws and requirements.
What are some Common Payroll Regulations?
Minimum Wage
Employers must ensure the contract meets the statutory minimum wage in Hong Kong, which has become HKD$40 per hour and was enacted on May 1, 2023.
MPF Contribution
Both the employee and the employer must contribute 5% of the employee’s monthly relevant income into the employee’s MPF account.
Statutory Holiday and Paid Leave
With effect from January 1, 2024, employees in Hong Kong become entitled to 14 statutory holidays annually. Employers must provide employees with paid holidays, as well as other forms of paid leave tied to local laws such as annual leave, sick leave, and more.
Record Keeping & Tax Considerations
In general, businesses must retain the payroll record for not less than 7 years. Employers must report the tax deduction in salaries to the Inland Revenue Department (IRD).
How can FastLane HR offer help?
Partnering with FastLane HR ensures all complicated processes and calculations in the payroll are completed accurately, efficiently, and in a timely manner. Our services include, but are not limited to, payroll calculation, salary payment arrangement, employee expense reimbursement, MPF contribution calculation, payslip creation and distribution, and monthly reporting.
Collaborating with our professional team allows you to enjoy high-quality, one-stop HR services while reducing costs. Should you have any inquiries, please contact us via WhatsApp, WeChat, or phone calls. You can also visit our website schedule a meeting with us for further information. We look forward to seeing you.