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  1. Overview: Taiwan
  2. Work permit for hiring expats via PEO
  3. Expand without a company set up
  4. Global PEO and payroll
  5. Global HR Compliance
  6. Contractor vs. employee: which is better?
  7. Global Payroll Calculator
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Global PEO and Payroll in Taiwan

It may be that you’ve dreamed of expanding your business to a different country and thought it would be hard to do. You’re not wrong—there are many factors to consider and many things that must be done to achieve success. But there’s no reason to despair; if you take a systematic approach and keep a clear head, you’ll soon see the path forward.

The first thing you should understand about international expansion is that it requires a lot of planning. The first step is to know your business goals—you need to identify what makes your company successful and which aspects can help your company grow internationally. This will also help you define how much growth you want from the expansion and how much risk you’re willing to take on to achieve it.

Once you’ve determined your goals, the next step is research. Several factors can make or break an international expansion: not only will you want to know about the market itself (population size, purchasing power, economic stability), but also about the laws and regulations that could affect your business operations, as well as tax rates and customs issues. Once you have a firm grasp of all these variables, it’s time.

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Global Expansion and Global Employment Challenges

When expanding your business operations to new countries, there are many important issues to consider to ensure compliance and avoid any potential problems on the global expansion journey.

These can include global HR administration issues such as securing business visas and permits, drafting employment contracts that comply with labor and tax laws across multiple jurisdictions, data privacy and intellectual property rights, global payroll and accounting considerations, and local statutory requirements.

There may also be a need to comply with various regulatory requirements relating to currency controls, foreign employment restrictions, and employee classification. Additionally, multi-jurisdictional tax considerations, risks, and liabilities should be taken into account, along with complex tax filing requirements and potential litigation risks.

Finally, being aware of the different languages, time zones, customs, and cultures you may encounter in these new markets is also essential. Doing the necessary homework on all of these issues in advance can help avoid any potential problems down the road.

Many things can go wrong when you try to find employment overseas. Acumen International can help you navigate these challenges. Still, it is important to know the potential obstacles you may face because if candidates are unhappy at any stage, the whole arrangement can fail.

As a PEO, we understand that you must put your employees’ needs first when expanding your business globally. Considering this move’s impact on their lives, it’s essential to think outside the box and ensure they are comfortable and supported every step.

What is a Global PEO?

A global professional employer organization (PEO) is a company that provides various global employment-related services to businesses. These services include payroll and benefits administration, tax reporting, and compliance with local government regulations. Global PEOs typically enter into joint-employment relationships with their clients, which allows them to operate within multiple jurisdictions or countries.

A PEO typically represents an employer in a joint employment relationship and can operate within one or more jurisdictions or countries. A key part of Global PEO and Payroll solution is taking on responsibility for payroll and benefits administration and compliance with the taxes paid on employee wages in the country.

What Services Does a Global PEO (Professional Employment Organization) Provide?

  1. Global Payroll management;
  2. Compliance with local tax rules (file & deposit) of the country where the EOR company is located;
  3. Handling compliant employment contracts:
  4. Background, education, and other checks;
  5. Onboarding and termination processes, as well as employee’s compensation;
  6. Arranging visas and work permits for employees;
  7. Ensuring the working process is organized under local labor laws;
  8. Processing workers’ medical insurance and other benefits (day-offs, bonuses, and more);
  9. Global employment process maps, matter maps, employment guides, and other documentation.

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Difference between a Global EOR and a PEO. Employment Risk Mitigation Strategy

When expanding your business into new countries, there are many benefits to using a global PEO (Professional Employment Organization) or EOR (Employer of Record). A global PEO or an EOR is an alternative to hiring your employees via an in-country legal entity. Instead of hiring your employees, you contract with a global employment solutions provider to hire and manage them for you.

A Global PEO and EOR Partners can handle all the immigration, hiring, payroll, tax, and HR compliance for you, freeing up your time to focus on other aspects of running your business. And if you ever need to leave the country, you can do so without being tied down by any long-term commitments.

However, both global PEOs and EORs work differently. So, it’s important to understand the differences between the two, so you can find the right one for your needs.

The main difference between a global EOR and a PEO is how they hire the workers. A global PEO assigns employees to the client company for employment so that it can replace the clients in their duties of hiring and managing the employees. The PEO is not a direct employer on paper. An EOR, on the other hand, is an employer of record in the country of business. They hire and terminate employees on behalf of the client company.

PEO EOR
Employment Model Co-employer Sole Employer
Key Services Global employment, payroll, benefits, immigration (visa, work permits), mobility Global employment, payroll, benefits, immigration (visa, work permits), mobility
Local Entity Establishment Required Optional
Liability Shares responsibilities and liabilities Assumes all responsibilities and liabilities
Legal Advice Optional Required
Global Labour & HR Compliance Optional Required

Why Partnering with Global PEO Is a Win-Win Solution For Businesses in Taiwan

As your business grows and changes, its needs also change. To stay competitive in the ever-changing global business environment, you need to focus on growing your business while ensuring that it is legally compliant with the requirements of each foreign market you enter. This can be a huge challenge for even the most organized entrepreneur. Suppose you are looking for an alternative to hiring an entire HR and legal department to handle these responsibilities for your company. In that case, you may want to consider working with a global PEO (Professional Employer Organization).

PEO clients can often offer their employees a more comprehensive benefits package than those who don’t. Such benefits may include healthcare, dental, and vision coverage, or retirement plans PEOs also offer retirement plans and other financial benefits.

In addition to managing legal requirements, a global PEO and payroll solution can help you minimize your tax liability and simplify payroll administration processes. Using a PEO as your single contact for managing payroll and benefits coverage makes things easier because it reduces internal costs—you can focus on doing what you do best. At the same time, the global PEO gets every employee’s need taken care of.

If you’re like many businesses and have trouble keeping track of each country’s requirement for mandatory employee benefits, unemployment claims, workers’ compensation, and other issues, you may find that using a Global PEO and Payroll solution saves you a lot of time and money. A global PEO will handle all your business-related social security and insurance needs and ensure that your employees get the coverage they need where they live. Because the PEO will be able to handle all of the details with one organization, it also helps cut down on internal costs—your company only has to pay one price for each policy rather than dealing with multiple companies across multiple jurisdictions.

A professional employer organization (PEO) can help companies streamline the administration of benefits and payroll by serving as the sole resource for all your employees’ needs. PEOs provide their clients with benefits that include healthcare and retirement programs, human resources consulting, workers’ compensation coverage, and more. In addition to this array of services, a global PEO handles payroll processing and taxes.

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Global Payroll Services. 100% Compliance. Speed of Light

Global payroll management is a critical function for any business. This can be a complex and time-consuming task, but it is important to keep your employees paid on time to maintain the efficiency of your international venture.

When it comes to payroll, there are many different regulations that you must follow to avoid penalties or litigation. Each country has its laws and regulations, but some standards apply internationally. You must know and adhere to tax deadlines, withholding and reporting laws, and regulations requiring employee tax slip signatures. If you fail to adhere to these payroll compliance rules, you could face severe penalties that could negatively impact your business.

Global payroll management is a complex process that requires careful consideration of various factors. Payroll specialists must consider local regulations and taxation requirements, which can be time-consuming and difficult to navigate. However, by addressing some key challenges and partnering with a Global PEO, organizations can ensure compliant, accurate, and timely payments.

  • keeping track of ever-changing exchange rates
  • understanding the distinction between the home country and host country payouts
  • developing clarity about how taxes are calculated in different countries.

12 Benefits of Partnering with a Global PEO

  1. A global PEO can help your company save on internal costs by acting as the single contact for insurance and benefits coverage. Global PEOs can also help improve the quality of your benefits coverage by providing access to a wider range of options.
  2. Your business faces many potential threats, from compliance issues to insurance costs and beyond. A global PEO can help you mitigate these risks by providing expert guidance and support. 
  3. A global PEO can help with immigration challenges and other concerns that may impact your business.
  4. By partnering with a global PEO, clients can often secure more favorable terms on employee benefit plans.
  5. Streamlined payroll and tax filings: The Global PEO and Payroll solution processes payroll and does all the necessary tax filings for the company, significantly reducing administrative overhead for employers.
  6. PEO clients have access to greater resources and opportunities for growth than other businesses.
  7. PEO clients have been shown to have a turnover rate that is 10-14% lower per year than comparable companies.
  8. Expanding your business globally can be risky, but by partnering with a global PEO, you can stay flexible and mitigate major global expansion risks. This allows your business to enter new markets securely and efficiently while knowing there is always an exit strategy available if needed.
  9. With a global PEO partner, you can test the waters before making a permanent commitment. Before you decide to invest in offices, equipment, and employee training at an overseas location, you’ll get valuable information about whether the location will be successful by seeing how well operations are received via a third party before committing to managing them yourself.
  10. In addition to helping with taxes and payroll, global PEOs can also help handle things like relocation, providing temporary housing and support while you find a permanent location for your employees to live.
  11. A global PEO can provide advice on international and local employment laws, tax, and compliance regulations. Suppose you hire people abroad and they start working for you without guidance. In that case, there is a risk that their expectations might not match up with reality—setting yourself up for an unpleasant surprise down the line when they realize their salary or work conditions aren’t what they had been promised.
  12. Many businesses use PEOs (Professional Employment Organizations) to take care of their HR needs abroad. A global PEO is an organization that provides services such as payroll and benefits without actually employing workers itself—instead, they simply manage employee records so that you don’t have to worry about it yourself. When using a Global PEO and Payroll solution, you’ll need to set up an account with them to file payroll reports online.

A Global PEO Can Help You Replace Numerous Vendors

If you’re looking to streamline your company’s operations and get a handle on global workforce management, partnering with a global professional employer organization (PEO) can be a great solution. PEOs can provide a full suite of services to help you replace the following numerous vendors.

  1. Payroll Company
  2. Employee Benefits Broker
  3. HR Consultants
  4. Background Checks Vendors
  5. IP Attorney
  6. Tax Advisor
  7. Translation service
  8. Legal Advisor
  9. Immigration Advisor
  10. HR Compliance Advisor.
  11. Licensing Consultancy

Global Payroll Calculator: Accurate Global Employment Cost Estimation

Acumen International builds the Global Payroll Calculator to help businesses anticipate the cost of employment across multiple countries and understand the compliance requirements for conducting business in a new country. The calculator then helps determine the tax implications for employees working abroad so that businesses can stay compliant with the laws of both countries.

Acumen’s research team tracks developments in 190 countries around the globe. It provides up-to-date data on local regulations related to tax, payroll regulations, benefits, hiring practices, compliance requirements, and other labor-related factors that impact an employer’s bottom line. This valuable information makes the Global Payroll Calculator an invaluable tool for businesses looking to expand internationally.

Global Payroll Calculator helps companies reduce labor costs by providing up-to-date information on hiring, compensation, and tax requirements. It is also an ideal tool for quickly locating employees in any country.

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International Global Payroll and Taxation in Taiwan

Payroll Cycle in Taiwan

Except as otherwise agreed to by the parties to a labor contract or when wages are paid in advance on a monthly basis, wages shall be paid on a regular basis at least twice a month; the details of wage computation must also be provided. This shall also apply to wages computed on the basis of piece by piece work.

Non-payroll taxes in Taiwan

All sales of goods and services in Taiwan, as well as the importation of goods into Taiwan, are subject to business tax. There are two types of business tax systems: value-added tax (VAT) and gross business receipts tax (GBRT).

Sellers and service providers are generally obligated to pay business tax for the sales of goods or services within Taiwan unless the law provides otherwise. For importation of goods, the business tax will be paid by the goods receivers or buyers via customs. For importation of services sold by foreign companies to Taiwanese buyers, business tax shall be paid by the service buyers.

Value-added tax (VAT). VAT is applicable to general industries. Under the VAT system, each seller collects output VAT from the buyer at the time of sale, deducts input VAT paid on purchases from output VAT, and remits the balance to the tax authority.

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Disclaimer: Any of the above information is subject to changes imposed by Taiwanese laws. To get the latest updates on taxation in Taiwan and in 190 countries worldwide, contact Acumen’s team of global employment experts.

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