Latvia is a small country that’s part of the Baltic states, making it a great location for companies that want to form relationships with other businesses in Europe. Although it’s exciting to form a new company location, you must first figure out how to set up a Latvia payroll and set up an entity to stay compliant.
Instead of worrying about the different Latvia payroll options, G-P offers a better alternative. As a global Employer of Record (EOR), companies can leverage our existing subsidiary to hire employees and streamline payroll. Instead of navigating the complexities of global expansion alone, you can rest assured that with G-P, your teams will be paid on time and compliantly, regardless of geography.
Taxation rules in Latvia
Les règles fiscales de Lettonie s’appliquent aux employeurs et aux employés. The country uses a pay-as-you-earn (PAYE) system. Employers have to contribute 23.59% of wages to social security, and employees contribute 10.5%. Since employers need to deduct income taxes at the source, it’s important for you to understand all of the country’s tax rules and regulations or work with an expert.
Latvia payroll options for companies
You have 3 different Latvia payroll options to choose from, including:
- Internal: You can set up your own Latvia payroll if you have a subsidiary, but you’ll need a large HR team to support it. Usually, this option only works for larger subsidiaries that also have a big budget and a long-term commitment to Latvia.
- Latvia payroll processing company: A local Latvia payroll processing company is an outsourcing option for your company, but with this solution, you’ll still be responsible for all of the company’s actions and compliance matters.
- G-P: The easiest way to run payroll in Latvia and stay compliant is partnering with an Employer of Record (EOR) like G-P. Avec nous, vous pouvez être assuré que tous les employés seront payés à temps et en conformité, ce qui vous permet de vous concentrer sur d’autres aspects importants de votre entreprise.
How to set up a payroll in Latvia
Avant de commencer à mettre en place votre gestion de la paie en Lettonie, vous aurez besoin d’une filiale enregistrée. Sans entité incorporée, vous ne pouvez pas embaucher d’employés, les ajouter à une paie, les payer ou commencer à travailler dans le pays.
Working with G-P doesn’t equal the same requirement — you can use our EOR instead of establishing your own subsidiary. Instead of waiting months, you can start hiring and paying your teams in minutes with G-P.
Conditions de droit/résiliation
Hiring and terminating employees is often difficult in another country, which is why adding entitlement and termination terms to employment contracts before choosing a Latvia payroll option will help you stay compliant.
The country allows fixed-term contracts for up to 2 years, and you can also hire employees under a probationary period of up to 3 months. Notice periods for dismissal range from 10 days to 1 month, depending on how long the employee has worked for the company. Les employés ont également droit à une indemnité de licenciement en fonction des années de service.
Rationalisez la gestion de la paie mondiale avec G-P.
G-P rationalise chaque étape du processus de gestion de la paie grâce à sa Global Employment Platform leader sur le marché. Payez votre équipe en toute confiance partout dans le monde en 150 devises grâce à notre système de paie automatisé à 99 %, le tout en quelques clics seulement. Nos produits s'intègrent également aux principales solutions HCM, en synchronisant automatiquement les données de paie des employés sur toutes les plateformes pour créer une source de vérité fiable et pratique pour les équipes RH.
Contactez-nous pour en savoir plus sur la manière dont nous pouvons vous aider.