Liberia is an African country with a population of over 4 million. The country has an interesting history, as it was the first country in Africa to become independent without any type of war or revolt. It was also founded by freed American slaves. Today, most of the population speaks English, but there are also 29 local African dialects spoken.
If you’re looking to expand to Liberia, one of the things you need to focus on is payroll. However, it’s difficult to handle payroll when you’re also trying to grow a new side of your company. Globalization Partners will make it easy to expand your company into new countries through Liberia payroll outsourcing and our Global Expansion Platform™. Read on to learn about the benefits of working with us in Liberia.
Taxation Rules You Need to Know
As a Liberia employer, you’ll need to focus on your own taxes and your employees’ contributions. Currently, the corporate income tax is set at 25%. The country uses a progressive tax rate from 0% to 96,500 Liberian dollars plus 25%. All non-residents have a flat income tax of 15%. Also, both employers and employees contribute to social security at 3% and 1.75% respectively. Employers must contribute another 1.75% of employees’ monthly gross earnings toward worker’s compensation.
Liberia Payroll Options
You get to choose from four different Liberia payroll options:
- Remote: Setting up an internal payroll isn’t an easy task, especially for small companies without a large staff or budget. Using a remote payroll through your parent company may work in these situations as long as you keep regulations by country straight.
- Internal: If you’re a large company with plans to work in Liberia long-term, an internal payroll may work well for your needs. However, you’ll need to set up the infrastructure to support this payroll before instituting it.
- Outsourcing with a local company: You can also choose to work with a Liberia payroll processing company. Doing so will classify as outsourcing your payroll, but you won’t be able to outsource compliance.
- Outsourcing with a global PEO: Finally, you can choose Liberia payroll outsourcing with a global PEO such as Globalization Partners. Instead of worrying about your own payroll, take advantage of the fact that we can add your employees to our subsidiary’s payroll to give you a fast and easy expansion.
Requirements to Set up a Liberia Payroll
Companies expanding to a foreign country must incorporate before they can handle any other tasks. For example, you need a Liberia subsidiary before you can set up your Liberia payroll. This requirement can turn into a challenge for many companies, as they need additional help, time, and resources to set up a subsidiary successfully.
Instead, you can work with Globalization Partners. We’re a global PEO with existing subsidiaries around the world that we use to help companies expand. When you choose us, you can add your employees to our Liberia payroll, and we’ll focus on taxes, compliance, and more on your behalf. We’ll manage all the risk too, so you can manage your company exclusively.
Essential Entitlement and Termination Terms
Terminating an employment contract can be difficult in a foreign country, so we recommend drafting entitlement and termination terms and having employees sign them before you choose a Liberia payroll option. Unless the employee is guilty of a gross breach of conduct, they should get severance equal to their remaining wages.
Globalization Partners Can Make Your Expansion Easier
You don’t need to worry about your expansion alone. Globalization Partners will make it easier for you to start working in Liberia with Liberia payroll outsourcing services. Contact us today for more information.