Managing payroll is a top priority as you establish your company and engage employees abroad. You'll need to balance several factors, including your budget, legal compliance, and regional market standards. Differences in time...
Read MoreManaging payroll is a top priority as you establish your company and engage employees abroad. You'll need to balance several factors, including your budget, legal compliance, and regional market standards. Differences in time zones and country-specific bank holidays can impact your payroll, too.
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Managing payroll is a top priority as you establish your company and engage employees abroad. You’ll need to balance several factors, including your budget, legal compliance, and regional market standards. Differences in time zones and country-specific bank holidays can impact your payroll, too.
Globalization Partners offers optimized services to address your requirements and help you move forward with your operations. As your Employer of Record (EOR), we’ll manage payroll administration and all of the associated risks so you can focus your attention on growth.
As an employer, you are responsible for submitting Pay As You Earn (PAYE) taxes before the 10th day of the month in which a salary is paid. Employer contributions for salary income taxes may range from 0 to 40 percent depending on income rates. However, the law limits the total amount of contributions to less than 30 percent of total taxable income.
You are also obligated to contribute 9 percent of employee income to each worker’s social security.
You can choose from several approaches to payroll management depending on how directly you want to be involved and how much risk you’re willing to take. Here are the most common options:
The process of establishing payroll will vary depending on the method you choose. If you choose to set up a subsidiary, for example, you’ll need to invest considerable time and other resources.
If you’re looking for a way to bypass the subsidiary setup requirements, Globalization Partners provides payroll outsourcing as part of our comprehensive solution for growing companies. Work with us for an alternative that offers the benefits of a subsidiary on a faster timeline — and without the liability.
You are only permitted to terminate a worker’s employment based on misconduct or business conditions outside your control. In cases of gross misconduct, you may terminate the contract immediately. However, in any other situation, you must provide adequate notice for the employee. You may also be entitled to provide severance pay in certain conditions, such as dismissal due to market conditions that compel you to lay off workers.
If you dismiss an employee without justifiable cause, you may be required to reinstate the employee or provide additional remuneration.
If you need a trusted solution to address your international payroll administration needs, our expert team is here to help. We bring in-country knowledge, an understanding of local legal compliance, and a dedicated team to address your operational needs and ensure your employees receive accurate compensation per regional labor laws.
For more information on our services, contact us today.
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.
