Global PEO in Taiwan
There are plenty of reasons why you might want to start building an international team. Maybe you want to expand into new markets. Or maybe you’re looking for the right candidates to fill specific job roles, only they just don’t exist within your home country.
Regardless of the reason, Taiwan has a large and high educated labor force with an incredible work ethic and STEM specialties — making it an excellent place to start sourcing the international talent to build the team of your dreams.
Of course, you can’t just pick up your new Taiwanese workers using the same hiring processes you use today.
There are certain steps you need to take to legally and efficiently onboard international employees. One of those steps involves working with a professional employer organization (PEO) in Taiwan — and Skuad is just the PEO to get you started.
Want to learn more about how you can easily onboard, pay, and hire international employees using a PEO in Taiwan and elsewhere? Then read on.
What is a PEO?
A professional employer organization is a service provider that supports startups, and small- to medium-sized businesses by taking on the responsibilities of a human resources (HR) department. This means they take on laborious administrative roles — including managing payroll, curating competitive benefits packages, and acting as your international legal team to keep your business compliant with local labor legislation.
They also take care of the onboarding process and other important HR functions so businesses like yours can focus their extra time and money on things like growth and productivity.
When you partner with a PEO, you can build an entire team of remote talent, including those from Taiwan. Your PEO in Taiwan and everywhere else will ensure that your international employees get what they need while ensuring you fulfill the local statutory requirements as an employer.
Thinking about partnering with PEO services in Taiwan? Hammer out the details with a Skuad team member today. We’ll make sure all your international hiring questions get answered.
What are the benefits of using a PEO provider in Taiwan?
Working with a PEO in Taiwan can really rev up the productivity and growth of your startup, small-, or medium-sized business. Read below to learn all the benefits of partnering with a professional organization in Taiwan:
Hire from the best of the Taiwanese and global talent pool
Taiwan is a hub for technological development and industrial manufacturing. In fact, its labor force is roughly 11.5. million strong, filled with educated and driven individuals. Taiwanese employees are said to spend an average of at least six years with a single employer, and thanks to having some of the world’s best universities, these individuals are especially versed in STEM subject matter.
So, if you’re looking for top talent to fill your open roles, Taiwan is the perfect place to start sourcing that talent.
Become a top global employment contender
In today’s remote work world, you won’t be the only employer looking for international talent. So you need to do more than simply put a global hiring sign on your digital door.
Your PEO in Taiwan will ensure that you not only meet the legal statutory benefits requirements for your international employees — they’ll help you design a perfectly robust benefits package that will allow you to attract and retain the type of talent you’re looking for.
Avoid wasting money on unnecessary expenses
Hiring international employees without PEO services in Taiwan will cost you much more than you bargained for. In fact, many large corporations choose to work with PEOs despite having the financial means simply because it’s much cheaper and less time-consuming.
Think of it this way: without a PEO in Taiwan, you would have to individually hire your own HR team. Not to mention, you would also have to put together a legal team to ensure your business remains compliant with Taiwan’s labor laws. That will add up fast!
Speak to Skuad today to see how we can get you started with global hiring from just $19 a month.
Gain in-depth insights into new global markets
If you’re thinking about doing international business in Taiwan or entering the Asian markets, then hiring Taiwanese employees through a PEO is the best way to get started. The international employees you hire will help you gain valuable market insights, which will prepare you to expand into the surrounding markets — in Asia and its neighboring markets.
Avoid setting a whole legal entity in Taiwan
Remember when we said it’s expensive to forgo a PEO when hiring internationally? Well, that’s primarily because without a PEO in Taiwan, you would have to incorporate your own legal entity within the country.
Not only would this takes months of work, but it’s an incredibly costly affair. You would be expected to physically be in the country during the incorporation, which means paying for travel, accommodations, food, etc. You would also need to hire a team of local lawyers to oversee the process.
If you don’t plan to physically expand into the country, then setting up a business in Taiwan is rather pointless.
PEOs allow you to bypass the need for a legal entity because they have their own legal entities already established. Therefore, they would be using their legal incorporation on your behalf to hire employees and even act as your employer of record (EOR) in Taiwan.
Become culturally aware
When it comes to hiring internationally, it’s extremely important to understand and respect the impact of cultural differences on working relationships. Your PEO in Taiwan will ensure that you’re informed about the various cultural practices of the Taiwanese so you can extend the respect that your new employees deserve.
For instance, the traditional Taiwanese workplace revolves around Guanxi, which loosely translates to personal connections or relationships. The type of Guanxi you have with your Taiwanese workers will directly impact their productivity.
Learn more about how Skuad can help ensure you remain culturally aware by speaking with a team member today.
Each country will have its own legal requirements for what employers are expected to provide their employees. If you don’t comply with the local legislation regarding labor, however, your business will likely end up having to pay some serious fines. You may even get hit with business bans.
Labor laws cover everything from payroll compliance to ensure you’re contributing the right percentage to social support systems and more.
Let’s take a look at some of the specifics for Taiwan:
- Taiwanese workers are paid in the New Taiwan Dollar (NT$).
- The minimum wage is currently set at NT$25,250 per month (around USD $860).
- The Taiwanese typically work 40-hour workweeks, divided up by 8 hours each day, with two days off. Overtime is allowed, except during the employee’s day off.
- It is also not mandatory to give Taiwanese employees bonuses. However, it is customary to offer a 13th-month salary at the end of the year.
- Probation periods are not mandatory, however, it’s common for employers to implement a “trial period” for a duration of three months.
- Employee termination in Taiwan is complex. It typically requires the employer to file a report with the appropriate authorities 10 days prior to the employee’s termination date. The report must outline valid reasons, and severance depends on the industry, length of employment, and employment contract stipulations.
Tax and employer contributions
Employees are taxed based on their income in NT$ as follows:
- 1 – 520,000: 5%
- 520,001 – 1,170,000: 12%
- 1,700,001 – 2,350,000: 20%
- 2,350,001 – 4,400,000: 30%
- 4,400,001 and over: 40%
Taiwan’s corporate tax rate is 20% as of 2020, and employers must also contribute:
- 6.35% of an employee’s salary to the Labor Insurance Scheme (LIS)
- 5.008% of an employee’s salary to the National Health Insurance Scheme (NHIS)
- Employees are entitled to 30 days of paid sick leave each year or 1 year of sick leave if hospitalized within a two-year period.
- Women are entitled to 8 weeks of maternity leave during which the first 6 weeks are paid at 100% of their salary and the remaining weeks are paid at 50% of their salary.
- Paternity leave includes 5 days of paid leave at 100% of the salary.
Want to learn more about how Skuad’s PEO services can help grow your business? Book a demo right now!
What does it cost to build a team in Taiwan?
Taiwan company registration
Getting a company registration in Taiwan for foreign entities will cost around NT$253061.88. That’s about USD $8,600 and €8000. However, that’s only for the first year of incorporation. The total engagement amounts for a Taiwan company registration, corporate bank account, legal fees, etc., amount to a minimum of NT$446,364.64. That’s an additional US$15,040 and €142,18.97.
Then you need to figure out travel, accommodation, food, or the office space you’ll need to rent for your new entity and associated teams.
PEO services in Taiwan
Trust us, it works out much for affordable to partner with a PEO. While the prices for PEO services in Taiwan will vary depending on the service provider, Skuad can get you started for free. We’ll also let you cancel at any time, minus the hassle.
Our PEO services that allow you to onboard and pay international employees begin at $19 per month — a pretty good deal if we say so ourselves! If you’re an enterprise-level business looking for an EOR in Taiwan, we can offer you a custom price as soon as you call.
If you’re ready to join forces with a professional organization in Taiwan or elsewhere, we’ll be waiting by the phone. You can also book a demo to check out Skuad’s global PEO solutions right away!