Wherever your business takes you, managing payroll is a critical aspect of everyday operations. An efficient, reliable system that complies with local regulations is vital to effective operations in a new work environment. If your company needs to set up Antigua and Barbuda payroll, work with Globalization Partners to manage complex requirements and make your processes seamless.
Taxation Rules in Antigua and Barbuda
Antigua and Barbuda is a country widely considered a tax haven because of its benefits for international business corporations, including tax exemptions in certain situations. A recent amendment to the law code requires a 25 percent flat-rate tax for all businesses, but you may be able to enjoy some tax benefits when you establish your company in the region.
However, you are responsible for covering monthly Social Security payments for employees. Social insurance is currently rising from 7 percent to 9 percent of an employee’s monthly payroll. As of 2021 it was set at 8 percent. It began increasing 0.25 percent per year starting in 2018 and will reach 9 percent in 2025.
Antigua and Barbuda Payroll Options for Companies
In terms of managing payroll, businesses expanding internationally have several possibilities that may address their requirements. Some of your company’s Antigua and Barbuda payroll options are as follows:
- Subsidiary management: Establishing a business entity in the country allows you to manage payroll for local employees. If you opt for this choice, keep in mind that you will need to assume full liability for the business and that managing payroll through a subsidiary requires extensive resources. Subsidiary setup can also be costly and time-consuming, so be sure to plan ahead.
- Internal payroll processing: If you want to manage payroll under your parent company, it may be possible to include Antigua and Barbuda employees under your internal payroll. While this option can decrease transactional costs, your company will face high financial risk. You’ll also need to dedicate resources and personnel labor to the task.
- Antigua and Barbuda payroll processing company: You can opt to hire a local company to process your business’s payroll requirements and administer remunerations for in-country employees. However, these entities tend to charge high fees for their services, and your company will ultimately be liable for any errors they make.
- Global EOR: With an Employer of Record (EOR) such as Globalization Partners, you can get Antigua and Barbuda payroll outsourcing to manage your company’s needs. We can manage your local employees’ payroll on one accessible platform. We’ll hire your employees through our existing entity, which means you can get the capabilities you need while we take on the financial risk for you.
In the event of termination, the notice you are required to provide by law varies depending on your employee’s length of service. If they are within the first week of employment, you can terminate their service without notice. If they are past their first week but still within the probationary period you agreed upon in the employment contract, you need to provide 24 hours’ notice.
After probation, you are required to provide notice at least as many weeks in advance as the duration between pay periods. At this point, the length of employment is not a factor. There is no requirement in any circumstance to provide more than 30 days’ notice unless your contract explicitly calls for a more extended notification period. An employee can request a written explanation for their termination within seven days of receiving notice, so your company should be prepared to provide one.
You are allowed to terminate the employee’s services before the date set in their contract, but you will need to pay severance if you do so.
Payroll Processing Company in Antigua and Barbuda
If you need highly effective solutions for payroll administration in Antigua and Barbuda, trust Globalization Partners to help you optimize your processes. We’ll handle liabilities, compliance with local regulations, and other critical requirements for your international business endeavors. With our services, you can ensure prompt, efficient payroll administration to meet your international employees’ needs and work with labor codes.
Reach out to our team today to discover how our solution can bolster your company’s international growth.