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Taiwan PEO: Benefits & Best Services in 2024

VERDICT: The best Taiwan PEO in 2024 is Horizons. Horizons stands apart from other PEOs with its regional expertise and strong hiring presence in Taiwan, Macau, Hong Kong, and China. 

Key Takeaways

  • PEOs in Taiwan enable companies to outsource HR functions and comply with local labor laws.
  • Taiwan’s PEOs are instrumental for businesses pursuing expansion without establishing a local entity.
  • The best Taiwan PEOs are Horizons, Acclime, and INS Global. 

What is a Taiwan PEO?

Professional Employer Organizations (PEOs) first arose in the United States in the late 1960s as “employee leasing.” Over time, it became a model for saving money and time in payroll and labor law compliance worldwide. 

PEOs have become a practical Taiwan HR solution to reflect the increasing prominence of Taiwan as an international financial and trade hub. Taiwan PEO providers are the co-employers for your Taiwan-based workforce, Taking on payroll, HR, and compliance responsibilities so you can focus on your core work

A Taiwan PEO solution is similar to a Taiwan Employer of Record (EOR) solution — another method for hiring in Taiwan without setting up a local entity. 

The PEO model is particularly significant in Taiwan: PEO solutions can strategically respond to the island’s unique geopolitical position. They help international firms manage cross-strait relations by operating within Taiwan’s legislative confines, thereby avoiding potential political sensitivities that could arise by directly setting up an entity or subsidiary in that country. 

3 Best Taiwan PEOs

1. Horizons

Horizons has extensive experience as a regional PEO in East Asia, with offices in every country and territory, including Taiwan.  Through their Taiwan PEO solution, Horizons can take care of payroll and employment-related obligations on behalf of global companies. They can also handle recruitment and visas in Taiwan with staff on the ground. 

With PEO solutions in 180+ countries worldwide, Horizons can also address your hiring needs in other locations. They are one of the few PEOs with a presence in every location in East Asia including Macau, Hong Kong and mainland China. 

💡 Pricing starts at $299+ per employee per month. 

2. Acclime

Acclime provides both PEO and corporate services support in Taiwan, ensuring that international companies can hit the ground running with their Taiwan-based team. Acclime enables international companies to focus on core business activities through its multiple expansion and hiring solutions, while Acclime takes care of the administrative complexities of Taiwan employment.

💡 Pricing starts at $799+ per employee per month. 

3. INS Global

INS Global offers specialized employment solutions throughout Asia, including in Taiwan. With extensive experience managing employment contracts, payroll administration, and ensuring HR compliance, INS Global allows you to focus on core business. 

💡 Pricing is not available publicly. 

Why Have a Distributed Team in Taiwan?

A Taiwan PEO provider takes care of your Taiwan-based team. But why would an international company hire in Taiwan anyway? In short, Taiwan is arguably the most important single location in the world for electronic manufacturing. Based on this, Taiwan has also become a world hub for tech startups — many of whom could benefit from PEO services

Check out TaiwanPlus below, and their investigation into international startup investors focus on Taiwan:

How Does a Taiwan PEO Solution Work? 

The concept of PEO in Taiwan has developed over the years to facilitate foreign businesses entering the local market with less complexity. While processes differ between providers, they usually proceed as follows: 

  • The Taiwan PEO hires and onboards employees in Taiwan. By acting as a co-employer, the PEO assists global companies in navigating Taiwan’s legal and regulatory frameworks. 
  • The Taiwan PEO processes monthly payroll, including paying employees, withholding taxes, and making necessary social contributions. 
  • The Taiwan PEO ensures a compliant ongoing employment relationship. As the administrative/legal co-employer, the PEO ensures ongoing compliance with Taiwanese labor law. 

How Does a Taiwan PEO Ensure Compliance with Local Labor Laws?

Local employment laws primarily regulate using a Professional Employer Organization (PEO) in Taiwan. This includes the Labour Standards Act, which sets forth the rules on working hours, wages, and leave, and the Act for the Recruitment and Employment of Foreign Professionals, which is particularly relevant when hiring foreign nationals.

Companies engaging with a PEO in Taiwan should ensure that these entities strictly adhere to the country’s labor laws and regulations, safeguarding employees’ rights and ensuring fair labor practices.

Below, we set out the critical labor laws that all international businesses hiring in Taiwan must comply with and how a Taiwan PEO can help. 

1. Minimum Wage Laws and Other Entitlements

The Ministry of Labor sets the minimum hourly wage in Taiwan in consultation with the Basic Wage Committee. The Minimum Wage in Taiwan is currently set at NTD (New Taiwan Dollar) $26,400. 

Taiwan employers must also ensure that employee termination follows a fair process under Taiwanese law (no “firing at will” as is permitted in the US)

A Taiwan PEO will ensure all employment contracts comply with Taiwan minimum wage laws. 

2. National Health Insurance Scheme

Taiwan’s healthcare system is a ‘single-payer’ model with that payer being called ‘National Health Insurance’ — Similar to National Insurance in the United Kingdom. Through this mechanism, employee medical benefits are funded by a payroll tax and direct government contributions.

In the infographic below, the Taiwan Ministry of Health and Welfare explains the key aspects of this system

National Health Insurance in Taiwan

3. Labor Insurance Scheme

All employers in Taiwan with more than five employees must make labor insurance contributions. This scheme has two components:

  • Ordinary risk insurance covers maternity, sickness, death, and disability benefits. It is charged 11% of the employee’s monthly salary, up to the maximum of NTD$ 45,800. The employer must contribute 70% of the cost of this premium.
  • Occupational accident insurance covers work-related injuries and what is called ‘workers compensation’ in other countries. The employer pays this at 0.14% of the employee’s monthly salary, up to a monthly maximum of NTD$ 45,800.

4. Employment Contracts

The employer in Taiwan must ensure that the employee has a valid, preferably written, employment contract. This could be a fixed-term or non-fixed (‘permanent’) contract. 

5. Parental Leave in Taiwan

Workers with more than six months of service with the employer can take up to two years of unpaid parental leave. This must be taken before the child reaches three years old. 

Pregnant employees are entitled to 8 weeks of paid maternity leave if with the employer for six months. If with the employer for under six months, it is paid 50 percent of its value. 

Paid paternity leave is available for seven days after birth. 

6. Annual leave and public holidays

Paid annual leave in Taiwan varies from 3 days to 15 days minimum, depending on the individual’s length of service. 

There are 15 paid public holidays in Taiwan, including time off for the famous Dragon Boat Festival held on the 5th day of the 5th lunar month every year. 

Local vs Global PEO Providers

A range of Professional Employer Organizations (PEOs) in Taiwan offer comprehensive employment services. They are critical in facilitating smooth business operations for companies looking to expand into the Taiwanese market.

1. Local vs Global Providers

Taiwan’s PEO landscape includes both local and global providers. Local providers have the advantage of a nuanced understanding of Taiwan’s labor laws, while global providers offer vast international experience and can benefit companies with a more comprehensive geographical presence.

  • Local PEOs emphasize their on-ground expertise and often provide more personalized services tailored to Taiwan’s business ecosystem.
  • Global PEOs (including Horizons, Acclime, and INS Global) extend their services across various countries, which can be advantageous for companies aligning their Taiwan operations with broader global practices.

2. Industry Specialization

Different PEOs may specialize in servicing specific industries. When selecting a PEO, considering their industry expertise can be as crucial as examining their local versus global capabilities.

  • Providers like Horizons are known for flexible and quick hiring processes, which can appeal to companies in fast-moving sectors.
  • Companies in niche markets may benefit from PEOs with specialized experience who can adeptly handle unique regulatory or hiring challenges pertinent to their industry.

Advantages of Using a PEO in Taiwan

Professional Employer Organizations (PEOs) provide tangible benefits for companies looking to establish or grow their presence in Taiwan.  

1. Ease of Market Entry

Using a PEO in Taiwan significantly reduces the complexity of entering the local market. Companies can bypass the extensive process of establishing a legal entity and instead rely on a PEO’s infrastructure. A reputable Taiwan PEO might enable businesses to start operations in as little as 12 hours, circumventing the usual timeframe of 4-12 months it takes for company incorporation.

2. Cost Savings

Businesses can also realize cost savings by using a PEO in Taiwan. By outsourcing HR tasks to a PEO, companies avoid the expense of setting up their own HR department locally. Furthermore, the company saves on the substantial cost of setting up its legal entity in Taiwan.

PEO services also often come with flexible terms, allowing for better control over operating costs.

3. Compliance

A Taiwan PEO ensures compliance with Taiwanese employment laws without needing in-house legal expertise. In addition to the cost savings, this reduces the risk that your company will become liable for breaching Taiwanese labor law

Considerations for PEO Engagement

Companies should consider critical local factors when partnering with an Employer Organization (PEO) in Taiwan. These include cultural nuances and communication practices that could influence business operations and employee management.

1. Cultural Factors

Taiwanese business culture emphasizes respect, relationships, and a conservative approach to decision-making. Companies should seek a PEO understanding of local customs to facilitate smooth hiring and management processes. For example, giving a face or showing respect in public settings is critical in Taiwanese interactions. A PEO well-versed in local traditions can navigate this cultural landscape to maintain employee satisfaction and uphold the company’s reputation.

2. Communication and Language Barriers

Communicating effectively in Taiwan entails more than just language fluency; it involves understanding the subtleties and context of business communications. While Mandarin Chinese is the primary language, a PEO must ensure clarity of communication, whether in written contracts or spoken directives. Companies should confirm that their PEO can bridge language gaps, preserving the nuances of business intentions while adhering to Taiwan’s legal framework.

Engaging a PEO in Taiwan

Due to the political uncertainty in the region, many businesses would benefit from the support of Taiwan PEO providers to help ensure full compliance with potentially fluctuating labor laws. 

To smooth the way for hiring in Taiwan, global companies should consider a PEO that can handle payroll, employment compliance, and related expansion activities like recruitment and visas.

Taiwan Business Guides

Frequently Asked Questions

Yes. A Taiwan PEO manages payroll by calculating and disbursing salaries, deducting taxes, and making necessary social security contributions on behalf of foreign employees. They also ensure compliance with Taiwan's tax laws and reporting requirements.

Yes, often a Taiwan PEO can assist with visa sponsorship and work permits for foreign employees by liaising with immigration authorities and ensuring that the necessary documentation is in place for legal employment in Taiwan.

Travis is a global business development advisor. He has spent the last 14 years supporting business establishment and development in North America, Southeast Asia, and throughout the world. With multiple degrees from the University of Oregon, Travis currently splits his time between the US, and Bali, Indonesia. At RemotePad, Travis writes about remote work, hiring internationally and PEO/EOR business models.

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