Ghana is a West African country bordering the Atlantic Ocean, Ivory Coast, Togo, and Burkina Faso. The country has a growing GDP, and English is the official language used in government. Because of major exports such as gold, cocoa beans, and timber, many companies can benefit from an expansion to Ghana.
G-P is a global PEO that makes it easier to expand across the world. We offer Ghana payroll outsourcing — as well as a suite of global expansion services — to companies that need to start working fast. We’ll even act as the Employer of Record to handle all matters of compliance on your behalf.
Taxation Rules in Ghana
Employers in Ghana contribute 13% of wages to social security, while employees contribute 5.5%. Companies also have to pay corporate taxes at a rate of 25%. However, mining and upstream petroleum companies pay 35%, and companies in the hotel industry pay only 22%. Ghana uses a Pay As You Earn (PAYE) system for personal income taxes. Employers are responsible for deducting a flat fee of 20% from employees’ pay to stay compliant.
Ghana Payroll Options for Companies
Every company is different and needs a Ghana payroll option that will fit their daily operations. You can choose:
- Remote: Remote payroll is when you pay your subsidiary’s employees through your parent company’s payroll. If you choose this option, you need to make sure you’re following the laws and regulations that apply to each country.
- Internal: An internal payroll is a good option for large companies planning to work in Ghana for years to come. However, it requires a larger HR staff as well as an expert who can make sure you stay compliant.
- Local outsourcing company: A Ghana payroll processing company can take care of outsourcing your payroll. That said, your company will still be responsible for the third party’s actions.
- G-P: G-P offers Ghana payroll outsourcing services through our existing PEO. We’ll handle paying your employees and also manage the risk of compliance.
How to Set Up a Payroll in Ghana
Your company needs a registered subsidiary in Ghana before you can recruit employees, choose a payroll option, and start working. Many factors can impact the incorporation process, but it typically takes companies anywhere from a few weeks to a few months. G-P makes it easier and faster to expand through Ghana payroll outsourcing and other services. We’ll add your employees to our local, compliant payroll in a matter of a day.
Termination is tricky in any country, but it’s notoriously hard in a foreign country where you’re not familiar with the different labor laws. You can terminate an employment contract for just cause in Ghana, but workers are entitled to a notice period depending on their contract. All termination notices should be in writing.
Payroll Processing Company in Ghana
G-P has helped many companies like yours expand to Ghana and beyond. Contact us today for more information regarding Ghana payroll outsourcing and our full suite of global expansion services.