Jordan is an Asian country with a population of approximately 10 million, many of which live in the capital city of Amman. The country is also well-known for the ancient city of Petra — “The Rose City” famous for its architecture — and being one of the New Seven Wonders of the World.
If your country wants to expand to Jordan, you can count on many benefits as well as challenges. One particular challenge you must address early in your expansion process is payroll. You don’t have to set up your payroll in your subsidiary, as you have many Jordan payroll options to choose from. G-P offers Jordan payroll outsourcing to simplify your payroll process and shoulder compliance.
Taxation Rules in Jordan
You should not set up your Jordan payroll until you understand the country’s various taxation laws. You must establish an in-country bank account to process your payroll. The country rolled out a new tax law in 2015 that changed tax rates and exemptions. Employees are taxed progressively on their annual income from 5–30%. As an employer, you have to pay corporate tax on income at a rate that depends on your industry.
Jordan Payroll Options for Companies
Jordan’s payroll options include the following four choices:
- Remote: You can use your parent company’s existing payroll by adding your Jordan employees and paying them from another country, but you have to make sure you follow the right regulations for your employees, as they could differ from those used with employees from another country.
- Internal: An internal payroll through your subsidiary will make sure you follow the right regulations and laws. However, this option typically requires more money and a larger staff.
- Outsourcing with a local company: If your company does not have the resources to run your own payroll and your parent company doesn’t have a remote option, you can work with a Jordan payroll processing company to outsource everything besides compliance.
- Outsourcing with a global PEO: Jordan payroll outsourcing with G-P will mean you don’t have to stress about your payroll. As the Employer of Record, we’ll also handle all compliance, so you won’t need to worry about taxes, labor laws, or related factors.
How to Set Up a Payroll in Jordan
You’ll need to establish a subsidiary to set up your Jordan payroll, but doing so can prove difficult for companies that need to work in Jordan quickly, as it can take months to establish an entity. G-P will eliminate this necessity and give you all the tools to start work in a day or two. You can use our Jordan PEO to hire employees, add them to our compliant payroll, and more. We’ll give you the time and peace of mind to run your company with confidence as we take on all matters of compliance.
While entitlement and termination terms may not seem related to your payroll, you can benefit from learning them before establishing a payroll. Jordan’s labor laws stipulate that you can only terminate a contract if both parties agree, the contract has expired, the work has been completed, or the worker dies or is no longer capable of work. The country also has ordinary and extraordinary termination terms depending on the nature of the dismissal.
Payroll Processing Company in Jordan
G-P will be an extension of your company from the day you start working with us. Contact us today to learn about Jordan payroll outsourcing.