Armenia is a small country in the southern Caucus region that borders Europe and Asia. Armenians are known for their hard-working attitude, punctuality, and relationships that are important to a business’ success. The country’s culture and location are both critical factors that make Armenia a great place for companies looking to expand.
Globalization Partners makes it easy to push past boundaries through our suite of global expansion services. Instead of examining all your Armenia payroll options, keep in mind that we simplify the process through outsourcing. We can use our Armenia PEO to hire employees who work for you and add them to our locally compliant payroll. With us, you’ll have complete peace of mind and the time to grow your company.
Taxation Rules in Armenia
All Armenian workers born after January 1, 1974 have mandatory social security accounts. Employees have to contribute 5% of their monthly earnings up to 500,000 drams a month, plus up to 1.5% of the account balance for administrative fees. Anyone making more than 500,000 drams a month has to contribute 10% of monthly earnings after subtracting 25,000 drams as a flat-rate government contribution, plus up to 1.5% of their account balance for administrative fees.
Employers have their own contributions to make to social security at a flat rate of 7,000 drams a month. You’ll also owe 15% of an employee’s monthly income if it’s between 20,000 to 100,000 drams and 5% of any income over 100,000 drams.
Your Different Armenia Payroll Options
You have different Armenia payroll options that can help you make the most of your daily operations. The four main choices include:
- Internal: Not all companies have the resources for an internal payroll, but larger companies planning to work in Armenia long-term may choose this option. You’ll need to hire a large HR staff and make sure you understand the country’s labor laws.
- Remote: Other companies may want to streamline the process and add employees in Armenia to the parent company’s payroll abroad. While it may seem easy to pay employees remotely, remember that those from different countries have their own compliance laws to follow.
- Local company: You can also choose to hire an Armenia payroll processing company to outsource your payroll. However, you can’t outsource matters of compliance with a local company.
- Global PEO: Globalization Partners is the only option that will outsource your payroll and also shoulder all compliance. We’re here to make your expansion easier so that you can focus more on your company.
Requirements for Setting up Payroll
Setting up an Armenia payroll usually starts with establishing a subsidiary in the country. Fortunately, you don’t have to incorporate when you work with Globalization Partners. We’ll help you start working in a few days with employees we hire on your behalf who will be productive from the start. You won’t even have to worry about setting up your Armenia payroll, as you can use our compliant payroll.
Entitlement and Termination Terms Necessary to Set up Payroll
It’s a good idea to add entitlement and termination terms to all your employment contracts before discussing Armenia payroll options. Notice periods will depend on how long the employee has worked for your company, and workers terminated because of redundancy will be eligible for severance pay.
Globalization Partners Can Help Your Expansion
You don’t have to go through the expansion process alone. Contact Globalization Partners today for more information on Armenia payroll outsourcing.