Suriname Payroll
When you hire employees around the globe, your payroll must comply with a wide variety of taxation and employment laws. As an Employer of Record, Globalization Partners offers a solution that simplifies this task.
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When you hire employees around the globe, your payroll must comply with a wide variety of taxation and employment laws. As an Employer of Record, Globalization Partners offers a solution that simplifies this task.
Taxation Rules
Employees pay taxes in brackets — each worker’s salary determines what percentage of their wages they must pay for personal income tax. Individuals who earn less than 2,646 Surinamese dollars (SRD) per year are exempt. The other brackets for taxable income are:
- SRD 2,646- SRD14,002.80. Eight percent
- SRD 14,002.80-SRD 21,919.80. 18 percent
- SRD 21,919.80-SRD 32,839.80. 28 percent
- More than SRD 32,839.80. 38 percent
Keep in mind that tax rates are different for overtime and special income. These taxable brackets range from five percent for people making less than SRD 500 in overtime to 25 percent for earnings over SRD 1,100.
All employers must file monthly tax returns for wage withholdings because these serve as a pre-levy for employees’ payments. You also must withhold four percent of employees’ salaries for their pension and pay half of their compulsory contribution for basic health care. These payments depend on a worker’s age.
Entitlement and Termination
Surinamese laws protect workers from unjust and ungrounded dismissals. You can terminate a contract more easily if an employee’s fixed-term agreement ends or there’s a mutual agreement that the employment relationship is over. Otherwise, you have to apply for a dismissal permit. The Ministry of Labor’s Dismissal Board handles and issues dismissal permits.
If you receive a dismissal permit allowing you to terminate an employment agreement, you must give that worker the compulsory notice. The length of that period varies based on the worker’s duration at your company.
If you cannot provide the required notice period or have grounds, such as misconduct, for termination, you must present evidence to the Head of the Ministry of Labor. Until you have their permission, you cannot end the employment agreement.
What Do You Need to Set Up Payroll in Suriname?
After registering your company for incorporation, you must also register to pay taxes at the Ministry of Finance’s tax office. You have to fill out a self-assessment that identifies your company’s type, and you’ll receive a tax identification number (TIN).
Some companies find it difficult to undertake this process independently. Fortunately, there are other options. Contact Globalization Partners to learn how we can add your employees to our compliant payroll.
Payroll Options in Suriname
You can manage your global payroll in several ways, and each method has advantages and disadvantages:
- Internal: Your parent company can manage your global workforce’s payroll. While this option is less expensive than others, your in-house team must undertake a massive volume of work. Plus, compliant payroll looks different in various countries, and your company is responsible for following all regulations.
- Subsidiary: If you set up an in-country subsidiary, you can manage payroll in-house. However, this option involves the time investment and monetary expenses of opening a subsidiary. If your team members are nonresidents, ensuring compliance may be as difficult as handling payroll internally.
- Suriname payroll processing company: A payroll processing company is a third party that takes care of your payroll for you. Many companies find this option convenient but dislike paying large service fees. What’s more, trusting another company is risky when your company retains full liability for mistakes.
- Globalization Partners: At Globalization Partners, we operate as an Employer of Record. When you work with us, we add your employees to our payroll, and you can oversee your global workforce from a single, user-friendly platform. We have country-specific professionals and legal experts on our team, so your company never falls out of compliance.
Reach Out to Globalization Partners
If you’re ready to expand, contact Globalization Partners. Our representatives can guide you through important legislation and share more information about our payroll outsourcing services.