Handling an international payroll in addition to your company's home country can be challenging. You may want legal assistance and HR management to help you manage payroll legally and fairly. At Globalization Partners, we're...
Read MoreHandling an international payroll in addition to your company's home country can be challenging. You may want legal assistance and HR management to help you manage payroll legally and fairly. At Globalization Partners, we're a global PEO — also known as an Employer of Record — with entities across the world. Our Laos payroll outsourcing services ensure you cover taxation and entitlement without added liability.
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Handling an international payroll in addition to your company’s home country can be challenging. You may want legal assistance and HR management to help you manage payroll legally and fairly. At Globalization Partners, we’re a global PEO — also known as an Employer of Record — with entities across the world. Our Laos payroll outsourcing services ensure you cover taxation and entitlement without added liability.
You are responsible for reporting income and deducting tax from employee paychecks. In Laos, workers pay personal income tax according to their gross income. Individuals owe 0 percent up to 15,600,000 Lao Kip (LAK) annually. This taxation increases by 5 percent for every increment, with LAK 780,000,001 requiring the highest tax of 25 percent.
As an employer, you’re also required to deduct contributions for the Social Security Fund. This fund covers retirement, disability coverage, injury compensation, sickness, and maternity benefits. You contribute 6 percent while workers contribute 5.5 percent.
When you expand internationally, you have a few options for managing payroll. Your process will depend on your company resources.
How you set up payroll depends on your management method. If you want to manage payroll internally, you have to establish an entity in-country. This process takes time, money, and government clearances. From there, you need to hire a team that can handle payroll.
Regardless of your management methods, you need your employees’ tax identification numbers (TINs). TINs help you report income and deduct taxes from paychecks. You should also help individuals register for the Social Security Fund if they’re not already registered. To make contributions, you must gain access to workers’ social security identification numbers.
You can terminate workers for a range of reasons, including failure to perform the job or a breach of contract. Employees are entitled to severance pay when:
In the case of general, unilateral termination, the worker receives 10 percent of their last wage multiplied by the number of months they worked for you. For unjustified termination, you must pay 15 percent multiplied by months worked.
We ensure employees receive their paychecks on time with all the required deductions. With our payroll outsourcing services, you can focus on other tasks while having the peace of mind of compliance. Get in touch with our team today to learn more about our international expansion 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.
