Morocco is a beautiful country located on the Northwest coast of Africa that borders both the Atlantic Ocean and the Mediterranean Sea. When you decide to expand there, you need to consider your different Morocco payroll options, hire the right employees, and make sure your payroll meets all of Morocco’s employment compliance laws. G-P can help with our Employer of Record solution. We’ll set up your payroll for you and handle all compliance, so you can focus on running your company.
Taxation Rules in Morocco
Both employers and employees have to contribute to social security in Morocco. The contribution amount ranges from 6.74% of wages for employees and up to 21.09% of an employee’s ranges for employers.
Employers also have to contribute to a corporate income tax rate of 31% or 37% for insurance, banking, and financial institutions. Some companies with a taxable income of MAD 300,000 get preferential corporate tax rates.
Morocco Payroll Options for Companies
Companies have four main Morocco payroll options to choose from:
- Remote: Remote payroll makes sense for large companies with many employees working at the parent company and the subsidiary. You can add all employees under one payroll, but keep in mind that employees from different countries will have separate regulations.
- Internal: You can also choose to run internal payroll out of your subsidiary if you’re committed to Morocco. However, you’ll need to hire a larger HR staff and have complete knowledge of the country’s compliance laws.
- Morocco payroll processing company: You could also choose to work with a Morocco payroll processing company that takes care of setting up your payroll. However, you’ll still need to make sure your outsourced payroll is compliant.
- Outsourcing with G-P: G-P is the only Morocco payroll outsourcing option that will handle both your payroll and all compliance. We’ll work hard to partner with you and make your expansion easier.
How to Set Up a Payroll in Morocco
If you opt to set up your Morocco payroll alone, you’ll need to learn all of the country’s employment compliance laws front to back. You’ll also have to establish a subsidiary in Morocco before you can hire employees, run payroll, and disperse compensation and benefits. Depending on where you incorporate and the entity you choose, it could take months before you’re even ready to hire employees. G-P will help take this time down from a couple of weeks or months to a few days.
We recommend outlining entitlement and termination terms in a written employment contract before hiring employees and adding them to your Morocco payroll. The country allows probationary periods that can be renewed after their initial duration. If you decide to terminate an employment contract, you need to follow notice periods outlined by the length of the employee’s service. Employees are typically eligible for a severance payment that’s also based on their length of service.
Payroll Processing Company in Morocco
Expanding into Morocco is an exciting time for your company, and G-P can make it even easier. Contact us today to learn more.