Sierra Leone is a small West African country that borders the Atlantic Ocean. Although it has a small population, 60% of people there are under the age of 50, and English is the official language. Sierra Leone is an attractive place for companies looking to expand to a location in Africa or with ties to other countries in Africa.
Even though an expansion to Sierra Leone is exciting, it can prove difficult for your company. You’ll need to consider how to set up your Sierra Leone payroll, which payroll option is best for your goals, and what you should do to stay compliant. Globalization Partners can help by acting as the Employer of Record. We’ll outsource your payroll and take on all compliance to give you the peace of mind you crave.
What Taxation Rules Exist for Payroll?
Taxation rules for companies vary by industry and resident or non-resident status. For example, the basic rate is 30% for non-resident companies and anywhere from 0-30% for resident companies. Employers are responsible for withholding tax at the source of income. These rates also vary based on whether your employee is a resident or non-resident.
Sierra Leone Payroll Options
Companies have four main Sierra Leone payroll options for opening a location in the country:
- Internal: Although not all subsidiaries have the means to run an internal payroll, you should consider the option if you’re a larger company committed to Sierra Leone. This solution will require more money and staff members.
- Remote: You can also choose to run remote payroll from your parent company and add your subsidiary’s employees to the same payroll. Doing so will streamline the process, but all employees will have different regulations.
- Sierra Leone payroll processing company: If you would rather outsource your payroll, you can work with a Sierra Leone payroll processing company. Remember, however, that your company will still be responsible for payroll compliance.
- Sierra Leone payroll outsourcing: Working with a global PEO for Sierra Leone payroll outsourcing means you can truly outsource your payroll and compliance. Globalization Partners will take the stress of compliance off your shoulders and onto our own.
Requirements to Set up Sierra Leone Payroll
When you expand to a new country such as Sierra Leone, you’ll usually have to establish a subsidiary in the country before you can set up payroll and start working. Globalization Partners eliminates this requirement through our Employer of Record platform. We can use our existing subsidiaries in other countries to help you start working in a few days without having to go through the lengthy subsidiary setup process.
Necessary Entitlement and Termination Terms
Figuring out entitlement and termination terms in other countries can turn into a challenge. We recommend outlining these terms in an employment contract before setting up your Sierra Leone payroll in order to maintain compliance. Sierra Leone allows probation periods up to six months. After that, employees can get dismissed for just cause and dismissed without compensation after two written warnings.
Partner With Us Today
Globalization Partners can help make your expansion smoother. Contact us today to learn more about our Sierra Leone payroll outsourcing services.