International expansion is crucial to your business’s success. It’s an exciting process, but it brings a host of new challenges. Administering payroll for your in-country employees can be complex. When you manage a global workforce, you’ll have to consider factors like currency exchange rates, international banking practices, tax laws, and entitlement terms.
At G-P, we ensure your company’s compliance with our payroll outsourcing services.
Taxation Rules in Haiti
Income tax is one of Haiti’s most important direct taxes. The amount your employees must pay is progressive, so it depends on which tax bracket they qualify for. Based on their wages, an employee may pay anywhere from 10 to 35 percent of their wages in income tax.
As an employer, you’re responsible for withholding two percent of a worker’s wages for payroll tax. Plus, you must pay at least three percent of their wages for health insurance. Employers and employees each pay a six percent contribution to social security.
Haiti Payroll Options for Companies
When you hire a global workforce, you can choose a few different ways to compensate your employees. Some payroll management strategies include:
- Remote: Assigning global payroll to your parent company’s in-house team is cost-effective. Keep in mind, though, that handling complex payroll on your own puts a large administrative burden on your team. Plus, you must keep track of all payroll regulations, and your company will be liable if you fall out of compliance.
- Payroll processing company: If your parent company has an in-country subsidiary, you can hire a payroll company that manages compensation for you. In theory, this solution solves the burden of compliance, but your company will still be liable for any breaches or mistakes.
- Internal: A subsidiary can also employ an internal team to handle payroll. Building your own payroll department can take a while, and doing so has a larger cost attached than some other options.
- Employer of record: When you choose G-P, we put your employees on our payroll. Our monthly invoice covers your employees’ paychecks, and you won’t have to think about compliance. As an Employer of Record, we take full legal responsibility for following labor laws in each of the countries where we have business entities.
How to Set Up a Payroll in Haiti
Regardless of the payroll management strategy you choose, employers must register employees with the Office of Occupational Accident Insurance, Sickness, and Maternity (OFATMA) and the National Office of Old-Age for insurance and social security. Plus, new hires who move for the position must obtain a work permit from the Manpower Directorate.
If you choose to manage payroll internally, setting up your business entity can take several months. Choosing a Haiti payroll processing company can also take some time, since you’ll still be liable for compliance and finding a reputable company is essential.
Notice periods before termination depend on the duration of a workers’ employment. Notices are only compulsory for employees with more than three months of service. The required notice periods for employees are as follows:
- Three months to one year of service: 15 days
- One to three years of service: One month
- Three to six years of service: Two months
- Six to 10 years of service: Three months
- Over 10 years of service: Four months
If the termination is effective immediately, employers must pay the contracted party the wages they would have earned working during their notice period. If an employee has given their employer lawful grounds to terminate their employment contract, neither the notice period nor the indemnity of notice is necessary.
Payroll Processing Company in Haiti
Working with G-P is a cost-efficient, risk-free outsourcing solution for your company’s payroll needs. We back our services with an expert legal team and stellar customer support.
Contact us today for more information about how we can simplify your global payroll.