Managing payroll involves close attention to legal details, no matter where you are. When you expand your company beyond your country, you need to consider the taxation and payroll requirements in your...
Read MoreManaging payroll involves close attention to legal details, no matter where you are. When you expand your company beyond your country, you need to consider the taxation and payroll requirements in your new locations. Globalization Partners can help you with your international expansion with our payroll outsourcing in Guyana.
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Managing payroll involves close attention to legal details, no matter where you are. When you expand your company beyond your country, you need to consider the taxation and payroll requirements in your new locations. Globalization Partners can help you with your international expansion with our payroll outsourcing in Guyana.
Employers must deduct income taxes from their employees’ paychecks, and the deduction percentage includes two sections. For the first GYD 1,560,000 of income, employers must deduct 28 percent for the Revenue Authority. For anything over that amount, employers must deduct 40 percent.
Payroll deductions also include monthly contributions to the National Insurance Scheme. This fund contributes to a range of social security purposes, like maternity leave, sickness benefits, and injury compensation. The total contribution per paycheck is 14 percent. The employee pays 5.8 percent, and the employer pays 8.4 percent on behalf of the employee.
When you set up your global payroll, you have a few ways you can choose to handle it. Your options are:
Depending on the payroll option you choose, the setup process may begin with establishing a subsidiary. Registering your company in the country takes time and money, and it involves a series of governmental clearances and applications.
Regardless of how you choose to manage payroll, you need to register with the National Insurance Scheme and the Revenue Authority to pay employee contributions and taxes.
Employers may terminate an employment contract with just cause, including behaviors like misconduct, continually missing work, or incompetency. Other causes could include redundancy or an agreement between both involved parties.
Entitlement terms include severance packages based on the years an employee has worked for the company. The terms are as follows:
For the first five years, employees receive one week of wages for each year of work.
For years six through 10, workers earn two weeks of wages for each year of work.
After 10 years, employees earn three weeks of wages for every year of work.
Severance packages cap off at 52 weeks of wages for any amount of service. Employees can also trade in their unused vacation days for wages as part of their severance.
Tax rules and entitlement terms change from one country to another, and Globalization Partners can ensure you meet the requirements no matter where you choose to expand. With resources in over 180 countries, we have you covered. Reach out today to learn more about our global PEO services.
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.
