Benin is a small West African country largely focused on subsistence farming. With borders by Niger, Burkina Faso, Nigeria, Togo, and the Atlantic Ocean, it’s a great access point to other countries. If you’re considering an expansion to Benin, you may be wondering how you’ll set up your payroll, hire employees, and more.
Globalization Partners can answer these questions and more through our suite of global expansion services. When you choose Benin payroll outsourcing with us, you’ll get to use our compliant payroll. As the Employer of Record, we’ll also shoulder all the risk, so you can focus on building a global company.
Taxation Rules in Benin
Following Benin’s taxation rules and regulations is extremely important to staying compliant. Employees in Benin need to contribute 3.6% of their salary to social security, while employers contribute 15.4%. Employers have additional tax obligations as well, including:
- 6.4% contribution for pension
- 9% contribution for family allowance
- 1-4% contribution for industrial injury assistance
Failing to comply with any tax regulations could result in fines or delays to beginning operations.
Benin Payroll Options for Companies
Instead of having only one Benin payroll option, your company can choose from several, including:
- Remote: One option is to use your parent company’s payroll to also pay your employees remotely. Although this solution can help streamline the payroll process, you’ll have to follow different regulations with every country.
- Internal: An internal payroll can work well for larger companies committed to working in Benin for years to come. However, with this option, you’ll need to employ a large staff and make sure you work with an expert in payroll compliance.
- Benin payroll processing company: Choosing to work with a Benin payroll processing company will help you outsource your payroll with a local company, but you’ll still be in charge of making sure your company stays compliant.
- Benin payroll outsourcing with a global PEO: Benin payroll outsourcing through Globalization Partners will ensure you stay compliant and don’t have to worry about payroll. When you work with us, your sole focus can be on growing your company.
How to Set Up a Payroll in Benin
You cannot set up your Benin payroll until you have a registered, incorporated entity in the country from which you run your company. It can take months to incorporate, however, and during that time you’ll lose employees you wanted to hire and business relationships you wanted to form. Instead, you can use our established Benin PEO and payroll to work faster.
One of the most challenging aspects of a global expansion is figuring out a country’s unique entitlement and termination terms. Adding these requirements to an employment contract can help you stay compliant. You can hire employees using a probationary period of up to three months and terminate a worker for a variety of reasons. Employees should get severance pay based on how long they worked for your company.
Payroll Processing Company in Benin
Globalization Partners will help you make your expansion successful through Benin payroll outsourcing and our other global expansion services. Contact us today to learn more.
THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). G-P does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect G-P’s product delivery in any given jurisdiction. G-P makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.