If you’re considering expanding your company to Benin, you may be wondering how you’ll set up your payroll, hire employees, and more.
G-P can help streamline the payroll setup and management process, ensuring accurate and on-time payments for your teams in compliance with local laws, so you can focus on building your global company.
Taxation rules in Benin
Following Benin’s taxation rules and regulations is extremely important to staying compliant. Employees in Benin need to contribute 3.6% of their salary to social security, while employers contribute 15.4%. Employers have additional tax obligations as well, including:
- 6.4% contribution for pension.
- 9% contribution for family allowance.
- 1-4% contribution for industrial injury assistance.
Failing to comply with any tax regulations could result in fines or delays to beginning operations.
Benin payroll options for companies
Instead of having only one Benin payroll option, your company can choose from several, including:
- Internal: An internal payroll team can work well for larger companies committed to working in Benin for years to come. However, with this option, you’ll need to employ a permanent team of experts in payroll compliance.
- Benin payroll processing company: Choosing to work with a Benin-based payroll processing company will help you outsource your payroll with a local company, but you’ll still be in charge of making sure your company stays compliant.
- A global EOR: A quality Employer of Record (EOR) like G-P offers local expertise and guidance to ensure you stay compliant in Benin as you navigate local payroll laws. You can rest assured that your teams are paid accurately and on time, so you can reserve your resources and energy on driving your global success.
How to set up a payroll in Benin
You can’t set up your Benin payroll until you have a registered, incorporated entity in the country from which you run your company. It can take months to incorporate, however, and during that time you may lose employees you wanted to hire and business relationships you wanted to form. Partnering with a reliable Employer of Record like G-P mitigates risk and increases your speed to market, so you can start business operations quickly and confidently.
Entitlement/termination terms
One of the most challenging aspects of a global expansion is figuring out a country’s unique entitlement and termination terms. Adding these requirements to an employment contract can help you stay compliant. You can hire employees using a probationary period of up to 3 months and terminate a worker for a variety of reasons. Employees should get severance pay based on how long they’ve worked for your company.
Streamline global payroll management with G-P.
G-P streamlines each step of the payroll management process with our market-leading global employment platform. Pay your team with confidence anywhere in the world in 150 currencies with our 99% on-time automated payroll system — all with just a few clicks. Our products also integrate with leading HCM solutions, syncing employee payroll data across platforms automatically to create one reliable, convenient source of truth for HR teams.
Contact us to learn more about how we can support you.