Uruguay is a South American country bordering Argentina and Brazil. Officially known as the Oriental Republic of Uruguay, the country is famous for its art deco buildings, colonial homes, old port market,...
Read MoreUruguay is a South American country bordering Argentina and Brazil. Officially known as the Oriental Republic of Uruguay, the country is famous for its art deco buildings, colonial homes, old port market, and beach-lined coasts. Many companies see Uruguay as an attractive location for an expansion, especially if they're entering the agriculture, meat processing, oil refining, tourism, and cement industries.
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Uruguay is a South American country bordering Argentina and Brazil. Officially known as the Oriental Republic of Uruguay, the country is famous for its art deco buildings, colonial homes, old port market, and beach-lined coasts. Many companies see Uruguay as an attractive location for an expansion, especially if they’re entering the agriculture, meat processing, oil refining, tourism, and cement industries.
Unfortunately, an expansion is rarely as easy as finding an office space and getting to work. You have to consider numerous factors, such as your Uruguay payroll options and how you’ll set up your Uruguay payroll. If you’re not sure what type of payroll will work the best for your company, you can trust Globalization Partners with Uruguay payroll outsourcing.
Uruguay uses a Pay As You Earn (PAYE) system, which means employers must withhold income tax from employees’ paychecks. Income tax rates range from 0 to 36% and apply to salary, vacation pay, severance, and more. As an employer, you’ll have to withhold social security contributions while making your own contributions.
Tax contributions for Uruguay employers also include the pension and medical insurance funds. Typically, employers pay 12.625% of an employee’s salary, and withholds 18.1 to 23.1% from the employee.
You can choose from the following Uruguay payroll options for your subsidiary:
Before you start to set up your Uruguay payroll, you need a subsidiary in the country. Your subsidiary will help you legally work, hire employees, run payroll, and provide compensation and benefits. If you don’t have the time or knowledge to establish your own subsidiary, you can work with our team. Globalization Partners already has a subsidiary in Uruguay that you can use to start working fast. Then, you can add your employees to our payroll to ensure total compliance.
Terminating an employment contract can be a costly process if you’re not sure of the right entitlement and termination terms in Uruguay. Determining these terms before you choose a Uruguay payroll option can help you stay compliant. For example, termination with just cause is allowed without prior notice or indemnification. However, abuse termination is subject to indemnification when there’s no just cause, there’s no notification of termination, or the termination is in bad faith.
Globalization Partners wants to see you expand fast without worrying about compliance or your payroll. Contact us today for more information about Uruguay payroll outsourcing.
If you’re ready to grow your business, or you have questions about a specific country, complete the form. One of our experts will be in touch shortly.
