Jamaica is a North American country with a large population close to 3 million. While Jamaica elected to become an independent nation in 1962, it’s still considered a member of the British Commonwealth. Therefore, Queen Elizabeth is the Queen of Jamaica, but only by tradition. She does not interfere with the country’s laws.
If your company wants to open a new location in Jamaica, you can look forward to sandy beaches as well as a stake in booming industries such as tourism, agriculture, mining, manufacturing, and more. However, you’ll also have to tackle some challenges, including payroll. Globalization Partners offers Jamaica payroll outsourcing to help you expand without setting up your own payroll or worrying about compliance.
Taxation Rules in Jamaica
Jamaica uses a Pay As You Earn (PAYE) system where employers deduct taxes directly from employees’ paychecks according to the Income Tax Act and Income Tax Regulations. Jamaica’s current income taxes are progressive and range from 0–30% for profits of over $6,000,000. Keep in mind that your company needs to pay income taxes as well based on your earnings.
Jamaica Payroll Options for Companies
There are four different Jamaica payroll options for companies that decide to expand:
- Internal: Large companies committed to operating in Jamaica can make an internal payroll work with a full HR staff. If you choose this setup, you should also hire a global compliance expert who can help you follow Jamaica’s tax and labor laws.
- Remote: Your remote payroll will be run through your parent company in another country. You can add all employees to this one payroll, but you’ll need to follow different regulations based on the country.
- Jamaica payroll processing company: If you do not have the resources for an internal or remote payroll, you can outsource with a Jamaica payroll processing company. Such a company cannot handle compliance on your behalf, however.
- Jamaica payroll outsourcing: Finally, you can choose Jamaica payroll outsourcing with Globalization Partners. As a global PEO, we can handle all aspects of your expansion and compliance.
How to Set Up a Payroll in Jamaica
Companies expanding to Jamaica need to have a registered subsidiary before they can choose a Jamaica payroll option. This requirement can take a significant amount of time, and it will delay your activities in the country, such as hiring employees, paying them, and providing benefits.
Globalization Partners offers Jamaica payroll outsourcing through our existing PEO in the country. When you work with us, you won’t need your own subsidiary because you can use our infrastructure for your entire expansion. You can work quickly and focus on your company as you trust us to take care of compliance and more.
Jamaica’s Employment (Termination and Redundancy Payments) Act outlines entitlement and termination terms you need to know before you set up your Jamaica payroll and add employees. For example, employees who have worked fewer than five years should get at least two weeks’ notice in writing, and those who have worked between five and 10 years should get at least four weeks’ notice. Anyone who has worked more than 10 years should receive 12 weeks’ notice.
Payroll Processing Company in Jamaica
Globalization Partners believes you can expand today without additional worries or hassles. Contact us today to learn about Jamaica payroll outsourcing and our other services.