Ecuador is a South American country with a large population, especially in the capital of Quito. The equator runs through the country, giving Ecuador its name. Its natural resources and large population...
Read MoreEcuador is a South American country with a large population, especially in the capital of Quito. The equator runs through the country, giving Ecuador its name. Its natural resources and large population of workers are perfect for companies looking to expand to a location close to other South American countries.
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Ecuador is a South American country with a large population, especially in the capital of Quito. The equator runs through the country, giving Ecuador its name. Its natural resources and large population of workers are perfect for companies looking to expand to a location close to other South American countries.
Unfortunately, planning an expansion requires a significant amount of time and many considerations, one of which is payroll. You need to set up your Ecuador payroll to comply with local labor laws and choose an Ecuador payroll option that works for your company’s size and activities. Globalization Partners offers Ecuador payroll outsourcing to make it easier for your company to expand without the worries associated with compliance laws.
Ecuador uses a Pay As You Earn (PAYE) system for all income taxes. As an employer, you’re responsible for withholding the right amount for taxes from each employee’s pay every month based on their salary. You also need to report the employee’s taxes and deductions on a 107 Form at the end of each year.
Both employees and employers contribute to Social Security every month. Employees put in 9.45% of their gross salary, while employers must give 12.15%. However, after an employee’s second year of employment, employers have to give additional reserved funds to Social Security at 8.33%.
Every company has different needs, which is why you have several Ecuador payroll options, including:
You can’t set up your Ecuador payroll as soon as you decide to work in the country. You’ll have to spend the time to establish a subsidiary before you can choose an Ecuador payroll option. Globalization Partners will help you expand fast through Ecuador payroll outsourcing. Our goal is to make it easier for you to expand by taking on the risk.
Termination is difficult in any country, but it’s even more of a challenge when you’re a foreign employer. Including entitlement and termination terms in an employment contract can help make sure both parties are on the same page. You need to give workers notice 30 days before termination if they have a fixed-term contract. Employees, in any case, are usually entitled to severance.
Globalization Partners is here for you during your expansion to Ecuador. Contact us today to learn more about Ecuador 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.
