Equatorial Guinea PayrollReading Time: 2 minutes
Equatorial Guinea is an African country with a small population of just over 1 million. It borders Gabon and Cameroon, giving companies located in Equatorial Guinea the opportunity to connect with other nearby nations.
If your company is considering opening a location in Equatorial Guinea, you need to discuss several important factors, including payroll. You can set up your Equatorial Guinea payroll as one of several options, but you’ll need to learn the country’s tax laws, compliance regulations, and more if you choose not to outsource. Opting for Equatorial Guinea payroll outsourcing with Globalization Partners will ensure you stay compliant and help you pay employees faster.
Taxation Rules for Your Payroll
When you decide on an Equatorial Guinea payroll option, you have to make sure both you and your employees are paying the right amount for taxes. For example, employers pay 21.5% of employees’ salaries to the National Institute of Social Security. Employees only contribute 4.5% of their earnings. You also need to make a 1% contribution to the Work Protection Fund (WPF) and make sure employees pay 0.5%.
Equatorial Guinea Payroll Options
Every company requires something different from their payroll, which is why you can choose from four Equatorial Guinea payroll options:
- Remote: When your parent company already has its own payroll, you can add your subsidiary’s employees and pay them from another country. However, your employees in Equatorial Guinea will have different tax laws than those in another nation.
- Internal: If it’s easier for your company to pay employees internally, you can run your own payroll out of your subsidiary. Keep in mind that doing so usually requires a larger staff and more resources.
- Outsourcing with a local company: An Equatorial Guinea payroll processing company will help outsource your payroll, but you still have to focus on compliance. If your company doesn’t already have a global compliance expert, you’ll need to hire one.
- Outsourcing with a global PEO: Your final option is Equatorial Guinea payroll outsourcing with a global PEO such as Globalization Partners. We’ll take care of paying your employees and making sure they stay compliant so that you can focus on running your subsidiary.
Requirements for Setting up Your Equatorial Guinea Payroll
When you set up your Equatorial Guinea payroll, you must have a registered entity in the country unless you’re expanding through a global PEO. Incorporating in Equatorial Guinea may seem simple, but it can take months or even a year to start working in the country. When you choose Globalization Partners, you can start working in a few days. We’ll handle your payroll, hiring process, compensation, and benefits. We’ll also take on the risk for you.
Entitlement and Termination Terms You Should Know
Before starting payroll, you should look at important entitlement and termination terms and add them to your employment contracts. In Equatorial Guinea, you must give employees at least one week of notice if they’ve worked a month or more and at least one month’s notice if they’ve worked six months or more.
Work With Globalization Partners Today
Globalization Partners has an entire team of experts ready to help you expand without any additional hassles or stress. Contact us today to learn about Equatorial Guinea payroll outsourcing.