This is not just terminology—it directly affects compliance cost (insurance, overtime, audits). We recommend judging by substance, not the label.

1. Almost always treated as wages (include)

If it is work-related (consideration) and regularly paid, it is wage—no matter what you call it.

• Base Salary
• Fixed Allowances: Position allowance, language allowance, expatriate allowance, meal allowance (even if tax-exempt), fixed transportation allowance
• Attendance Bonus : if systematic and routinely paid, it is usually treated as wage

2. Gray areas (depends on design)

• Performance/Sales Bonus
  • If paid monthly, fixed, and broadly granted, it may be treated as disguised wage (included for insurance and overtime calculations).
  • If performance-based, variable, non-regular (no performance = no bonus), it may be excluded from “average wage” for labor purposes.
• Year-end/Festival Bonus ： If not contractually guaranteed as Guaranteed Annual Pay, it is usually treated as discretionary (not included in average wage), but still taxable and may trigger NHI supplemental premium.

3. Usually excluded (reimbursement-based)

• Travel/Entertainment Expenses : Must be supported by receipts, reimbursement basis, and within tax limits
• Employer-paid 6% Pension Contribution : Employer cost, not employee salary income

This is a key tax issue for multinationals. The core is cash flow and contract structure. High-risk (treated as taxable salary)與「合約」。

• High-risk (treated as taxable salary)
  Company wires cash (e.g., NT$50,000) to the employee for rent. The tax authority may treat it as a cash allowance and tax it as salary.
• Recommended (treated as company expense; non-taxable to employee)
  • Contract party : The company signs with the landlord/school
  • Payment : Company pays the landlord/school directly (or employee advances then reimburses with receipts)
  • Policy : A clear internal policy stating this is a business-required expatriate expense

Conclusion : With the above, you can support the position that this is a business expense, not taxable salary to the employee.

Minimum wage is updated annually. Please follow the latest Ministry of Labor announcement.

2025 (ROC Year 114) :

• Monthly : NT$ 28,590
• Hourly : NT$ 190

Yes—first confirm the work permit type to avoid illegal employment.

HR SOP： Before onboarding, request the original ARC or Gold Card, and keep a photo copy on file.

This is frequently miscalculated. The key is tax residency (183-day rule).。

Step 1: Count days

• Resident (183+ days) : Taxed similar to local residents.
• Non-resident (<183 days) : Withholding applies at higher rates and no personal deductions.

Step 2: Apply withholding rate

• Resident : Follow the salary withholding table, or withhold a flat 5% (many foreign firms choose 5%). 5%（外商通常選 5%）。
• Non-resident : Standard rate 18%。
• Non-resident (low-salary exception) : If monthly salary ≤ 1.5× minimum wage (about NT$42,885 in 2025), rate may be 6%. 6% 優惠稅率。

Practical note : If an employee joins in January and is expected to stay all year, you may withhold as resident (5%). If they leave early and fail the 183-day test, the company must top up the difference to the non-resident rate and file a correction.

It is an additional premium (current rate 2.11%) imposed on income beyond regular payroll.

1. Paid by employees (bonus-type)

• Trigger : When cumulative bonuses (year-end bonus, profit sharing, etc.) exceed 4× the monthly insured salary.
• Threshold : The portion of "cumulative" annual bonuses that exceeds 4 times the employee's "monthly insured salary."
• Formula : (Cumulative bonus − 4 × insured salary) × 2.11%
• Collected by : Employer withholds at payout.

2. Paid by employers (salary-gap type)

• Logic : if total salary paid is higher than total insured salary, the gap is assessed.
• Formula : (Total monthly salary paid − Total monthly insured salary) × 2.11%

• If you have 5+ employees (including 5):
  Must set up an enrollment unit and enroll all employees in Labor Insurance + Employment Insurance + Occupational Accident Insurance.
• If you have 4 or fewer employees :
  • Labor Insurance : optional by law. Employees may join via an occupational union instead. We strongly recommend enrolling, because in a workplace accident, Labor Insurance can significantly reduce employer liability.
  • Employment Insurance & Pension (6%) : still mandatory even if Labor Insurance is not joined.
• If you have no employees (only the owner) :
  You cannot set up a Labor Insurance unit. The owner should join via an occupational union or National Pension (as applicable).
• Important—NHI rule :
  Regardless of headcount (even 1 person), once you form a company, you must set up an NHI enrollment unit.

• Labor Insurance (not mandatory) :必須先幫員工加保，老闆才能跟著保在公司。投保薪資不得低於員工（通常保最高級距 45,800 元）。
• NHI (mandatory) : The owner must enroll as the Responsible Person under the company (not via union or as a dependent). • If the owner has another full-time job, NHI stays with the primary employer; the new company enrolls employees only.

If there is an employment relationship, generally yes.

• Labor Insurance : required. Long-term part-timers enroll monthly (insured salary not below NT$11,100) and marked as part-time; day workers enroll by day.
• NHI : Choose one enrollment (often stays under prior coverage such as as a dependent or via school).
• Pension (6%) : Employer must contribute regardless of full-time/part-time.

• Dependent strategy : Attach dependents to the lower-salary insured person.
• Large-family rule : Under the same insured person, dependents from the 4th onward may be exempt from premiums.
• Multiple-job strategy : Enroll under the higher-salary job to avoid unnecessary supplemental premiums (case-by-case).

Beyond salary, statutory costs include :

• Labor Insurance : Salary × ~8% (employer pays ~70%)
• NHI : Salary × ~3.1% (employer pays ~60%)
• Pension : Salary × 6% (employer pays 100%)

Conclusion : Total employer cost is typically ~1.15–1.20× the salary.

This is a classic “small saving, big loss” risk.

• Failure to enroll / under-reporting : Penalties up to 4× the unpaid premium.

Worst case : If a workplace accident occurs, the employer may be liable for the benefits that should have been paid by the system (often starting from hundreds of thousands).

They are separate benefits; you may receive both.

Summary: Pension is your personal account; Labor Insurance is social insurance. They run in parallel.

Yes. If the responsible person has actual labor participation and is properly enrolled, they can claim old-age benefits under the same rules (e.g., age 60–65 and contribution requirements).

No. It is age-based, not employment-status-based. From age 60, you can claim it regardless of whether you are still working or enrolled.

It usually depends on whether you have 15+ years of insured seniority :

• 15+ years : Typically monthly pension (the longer you live, the more you receive).
• <15 years : Lump-sum benefit only.

Exception : Some legacy insured periods (before Jan 1, 2009) may allow a special lump-sum option if conditions are met.

Retirement Pay = Average Wage × Base Units

• First 15 years : 2 units per year
• From year 16 onward : 1 unit per year

Cap : Maximum 45 units

This is a common misconception and a key focus of labor inspections. What matters is the actual working relationship, not the contract title. If these “subordination” factors exist, it is treated as employment :

1. Personal subordination : Company directs and supervises, attendance rules apply
2. Economic subordination : Works mainly/only for your company, limited freedom to take other clients
3. Organizational subordination : Integrated into your org structure

Expert advice : If using contractors (no labor/NHI enrollment), ensure high autonomy (time/place/method). Otherwise it may be deemed “fake contractor, real employee,” with severe penalties.

It depends on the nature of work :

• Salary income (Code 50) : If it is employment in substance
• Professional practice income (Code 9A/9B) : e.g., lawyers/CPAs or skilled professionals operating independently, with their own tools and business risk

Key difference : Professional income may claim deemed costs, but misclassification creates tax adjustment risk.

• Directors only (board duties only) : Typically meeting fees or profit distribution; treated as other income/dividends; no Labor Insurance/Pension enrollment.
• Directors with employee role (active management) : e.g., also GM with fixed salary—must enroll and treated as salary income.

• Overtime pay has statutory multipliers :
  • Weekday OT first 2 hours :×1.34
  • Weekday OT hours 3–4 :×1.67
  • Rest-day overtime rates are higher
• Comp time requires consent : Comp time may replace OT pay if the employee agrees, generally 1:1. If unused by deadline, it must be paid out.
• Ceiling : Overtime limit is generally 46 hours/month.

• Employee (tax-exempt) : Legal overtime pay within 46 hours/month may be tax-exempt.
• Company risk : Tax authority may compare time records vs cash flow. If no overtime occurred but expenses are claimed, tax adjustment and penalties may apply.

1. Complete time records : Keep for 5 years
2. Clear payment evidence : Payslips should identify overtime items

Taiwan labor law (annual leave, marriage/funeral/sick/maternity leave) is the minimum standard.

Global policies must be localized. If HQ policy is stricter than Taiwan law (e.g., fewer leave days), you must adjust to comply.

• Regular day off (mandatory) : Typically Sunday; overtime is generally prohibited except emergencies.
• Rest day (adjustable) : Typically Saturday; overtime is permitted but costly.

• Annual leave : 3 days after 6 months; 7 days after 1 year; increases with seniority
• Marriage leave : 8 paid days
• Funeral leave (paid) : Parents/spouse 8; grandparents/children 6; siblings 3

We do more than payroll. We build a system that stands up to audits :

• Review employee handbook and work rules for legal updates
• Standardize overtime/leave workflows
• Automated checks during payroll to reduce disputes and compliance risk

In short, we take the time-consuming, unavoidable cash-handling tasks off you or admin staff. We help with :

• Invoice organization : verify vendor invoices and create a “who to pay / how much” list
• Online banking entry : key in transfer details (account/amount/memo) so you only need to log in and approve
• Bank runs : tax payments, check deposits, FX documents—queue time on us
• Petty cash control : review claims and prepare reimbursement packs for funding
• Clear records : reports that track cash movement for transparency
• Ceiling : Overtime limit is generally 46 hours/month.

• Treasury (we operate) : Cashflow execution (online banking entry, bank runs)
• Bookkeeping & tax (we record) : Accounting/tax (invoices, journals, filings)
• Benefit when combined : left hand pays, right hand books—highest efficiency and clean records.

Yes. We cannot move funds independently. We enforce segregation of duties:

• We prepare : Organize and enter transactions
• You release : Only you hold final passwords/keys—no approval, no transfer

1. Access control : Approval tiers per your policy (e.g., manager for small amounts, chairman for large)
2. Audit trail : Digital records for audit needs
3. Security : Encrypted transmission and strict access permissions

• Foreign firms or startups : HQ internal control requirements without a full finance team
• Owner-operated businesses : Outsource to free up leadership time
• High turnover : Avoid painful handovers and cashflow chaos
• Control-focused teams : Need transparent, traceable payment workflows

No. The pay/no-pay decision always stays with you.
We prepare and remind deadlines, but when and whether to approve is entirely your decision.