As a business owner, you're familiar with payroll processes, including wage calculations, taxes, and deductions. When you take your company abroad, you'll confront a new set of laws. Globalization Partners will help...
Read MoreAs a business owner, you're familiar with payroll processes, including wage calculations, taxes, and deductions. When you take your company abroad, you'll confront a new set of laws. Globalization Partners will help you navigate them as your Employer of Record.
As a business owner, you’re familiar with payroll processes, including wage calculations, taxes, and deductions. When you take your company abroad, you’ll confront a new set of laws. Globalization Partners will help you navigate them as your Employer of Record.
Calculating wages is one step of the payroll process, and deducting taxes is another. As an employer, you’re responsible for deducting income taxes from your employees’ paychecks. South Sudan’s progressive income tax system determines five brackets of taxable income. They are as follows:
Pension schemes are not compulsory, but they are a common deduction for employees in the country. Workers can have up to 8 percent in pension deductions from their paycheck paid to a government-recognized retirement scheme.
You’re required to provide a payslip to every employee after providing wages, and these income tax and pension deductions should be included.
When you take your business to a new country, you have a variety of options for managing payroll. Common methods include:
Payroll setup depends on the option you choose. If you want to establish an internal department, you’ll need to incorporate a company in South Sudan. This process requires various confirmations and documentation from the government. Creating an entity can take several weeks, and you should also factor in the time it takes to hire a payroll team.
Whether your payroll is remote, internal, or through a third party, you’ll need to register with the country’s tax authority and collect your employee’s taxpayer IDs. These identification numbers allow you to deduct taxes from paychecks and send them to the revenue department.
Employers and employees can initiate the termination of a contract with appropriate notice, but severance pay is only relevant in specific circumstances. An employer needs to provide severance pay in the following circumstances:
The employer determines severance payment in collaboration with the employee and their trade union. Workers are also entitled to a gratuity payment upon termination. These payments are as follows:
Employees may also trade unused vacation days for wages upon termination.
When you’re ready to expand, Globalization Partners can help you manage international payroll and mitigate risk. Get in touch with us today to learn more.
If you’re ready to grow your business, or you have questions about a specific country, complete the form. One of our experts will be in touch shortly.
