Once you've set up an overseas office and successfully recruited local employees, it's time to navigate the payroll process. This requires determining proper compensation, meeting tax and entitlement regulations, and setting up...
Read MoreOnce you've set up an overseas office and successfully recruited local employees, it's time to navigate the payroll process. This requires determining proper compensation, meeting tax and entitlement regulations, and setting up a reliable payment distribution system. Companies new to Iraq often find it difficult to properly navigate a unique legal system with distinct payroll laws.
Once you’ve set up an overseas office and successfully recruited local employees, it’s time to navigate the payroll process. This requires determining proper compensation, meeting tax and entitlement regulations, and setting up a reliable payment distribution system. Companies new to Iraq often find it difficult to properly navigate a unique legal system with distinct payroll laws.
When you work with Globalization Partners, you’ll experience peace of mind knowing that we’ll competently handle every step of the payroll process. As a global PEO — also known as an Employer of Record — we’ll put your employees on our payroll and manage the legal complexities of every hire.
As an employer, you are responsible for withholding employees’ income taxes. These will range from 3-15% of an employee’s income. You must also contribute a set percentage to an employee’s social security plan.
Managing payroll is an essential part of bringing your company across new borders. Payroll practices generally involve sending payments promptly and handling any paycheck issues that arise. You can manage payroll in several different ways:
Your payroll setup process will differ depending on the route you choose. If you decide to manage your payroll remotely, you’ll need to add overseas employees to your current system. If you will handle payroll internally or through a local partner, you’ll need to establish an in-country subsidiary first. The incorporation process involves a series of paperwork, including registering your business with the government and depositing a certain amount of capital in a verified local bank account.
If you decide to outsource your payroll management to a global PEO, you can begin hiring and paying your employees in a few days.
The Iraqi Labor Law includes strict regulations concerning acceptable grounds for termination. If you have permissible grounds for termination, you may end an employee’s contract earlier than the fixed term. However, you are generally required to give an end-of-service gratuity payment equaling two weeks’ salary for each year worked. In a few cases — such as termination for harmful gross negligence — employees are exempt from this rule.
You are also required to pay for any unused annual leave, as well as the employee’s final paycheck. You must send this payment within seven days of an employee’s last working day.
Let us handle the details of payroll management, so you can focus on your larger business expansion goals. We can serve as your Employer of Record and payroll processing company in Iraq. All you have to do is confirm your paychecks, send us the funds each month, and let us handle the rest.
Contact Globalization Partners today to learn more about your payroll outsourcing options.
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