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GPCHN: Global Payroll China Legislative Changes for Tax Year 2020 (Doc ID 2659087.1)

Last updated on AUGUST 13, 2020

Applies to:

PeopleSoft Enterprise HCM Global Payroll China - Version 9.2 to 9.2 [Release 9]
Information in this document applies to any platform.

Details

The intent of this document is to describe solutions for problems or questions related to Global Payroll China Legislative Changes for Tax Year 2020. This solution applies to customers on PeopleSoft Release 9.2. This is a living document and will be updated as new solutions are created; please review thoroughly on a regular basis.

(Last updated August 13th 2020) Summary Table - see below for details:

Please see table below for details.

 

Legislative ChangeEffective DateAdditional InfoP1 Patch Fix Target DateTargeted into PUM Image/Patchset

COVID 19

Exemptions on employer contribution towards some of the social insurance to support employers affected by COVID 19.

01-Feb-2020
  • All provinces except Hubei are allowed to exempt the employer contribution of Basic Pension, Unemployment and Work related injury Insurance.
  • These exemptions are effective from 01-Feb-2020. In case of micro, small and medium Enterprises the exemption is for 5 months whereas in case of large enterprises exemption it is for 3 months.
  • For Hubei province, the exemption is for the above 3 insurance and it is allowed for 5 months irrespective of the size of the organization.
  • Social Insurance employer contribution payments can be deferred for 6 months effective Feb 2020. No late fee charges will be levied.
  • Beijing province has taken a stand that they will exempt half the current % of the employer contribution of Basic Pension, Unemployment and Work related injury Insurance. These reduced percentages are effective 01-Feb-2020 and are applicable for 3 months for large enterprises whereas 5 months for small and medium enterprises.

These changes will not be delivered as a patch instead a configurations suggestions document is provided

 

Configuration Suggestion Document for COVID 19

For Chinese version, review below document:

Configuration Suggestion Document for COVID 19 Chinese

 

 

 Taxation Amendments  01 July 2020 Tax Exemption

Tax residents who receive salary or wages for the first time in a tax year is allowed for a tax exemption amount of ¥5000, times number of months from 1st January till the current (first) pay period and ¥5000 for subsequent months.

Student internship payments

During internship, the payments received by full time students to be taxed by accumulative withholding tax method

 

For 9.2 release: <Bug 31731326>

PUM Image 36, tentative release date is October 16, 2020

         

 

To stay up with the legislative changes that will impact your PeopleSoft Application visit https://blogs.oracle.com/psftlegupdates/

Actions

 You need to apply the critical patches / GP Updates whenever their legislative fixes are posted.

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