Zimbabwe PayrollReading Time: 2 minutes
Zimbabwe is an African country with a large population of over 16 million. It’s known for its beautiful landscape, mineral reserves, and diverse wildlife. Victoria Falls is also a draw for tourists along with the different parks, reserves, and safari areas in the country. Cecil Rhodes, the founder of a trading company, colonized Zimbabwe and named the country after his company.
Companies that decide to expand to Zimbabwe often don’t think about all the challenges involved, including payroll. Do you have the money and staff to set up your own Zimbabwe payroll? If not, it’s best to work with a global PEO such as Globalization Partners. We’ll allow your company to use our Zimbabwe PEO and payroll to run your company and pay employees. We’ll handle compliance on your behalf too so that you can focus on running your company.
Zimbabwe Taxation Rules
Zimbabwe’s Income Tax Act is the framework for all employees and employers. The country uses a Pay As You Earn (PAYE) system, which means employers have to deduct taxes straight from an employee’s paycheck. Employees owe more based on what they make through Zimbabwe’s progressive tax scale.
All employees must contribute toward the AIDS Levy, which is a percentage of the person’s taxable income. The current rate is 3%, but that could change in the years to come. The AIDS Levy should be paid to the Zimbabwe Revenue Authority (ZIMRA) at the same time the employer submits the PAYE amounts withheld.
Zimbabwe Payroll Options
Companies have several different Zimbabwe payroll options to choose from when expanding, including:
- Internal: Do you plan on working in Zimbabwe long-term? Some companies with this plan choose to establish an internal payroll, which will require a large staff and big budget.
- Remote: Another option is adding your employees to your parent company’s payroll and paying them remotely. However, you’ll need to make sure you follow the right regulations if you have employees from different countries all on one payroll.
- Zimbabwe payroll processing company: A Zimbabwe payroll processing company will keep your money flowing through the local economy, but you’ll need to worry about compliance.
- Global PEO: Globalization Partners is a global PEO that will handle compliance and paying your employees. We’ll add your entire staff to our existing payroll, so all you’ll need to worry about is growing your bottom line.
Requirements for Establishing Payroll
If you establish your own payroll, you’ll need a subsidiary to house it. Registering an entity in Cape Verde can take weeks or months and delay your entire operating plan. If you work with Globalization Partners, however, you won’t have the same requirements, as you can use our existing Zimbabwe PEO as your infrastructure.
Entitlement and Termination Terms You Need to Know
Zimbabwe’s Code of Conduct says a contract can only be terminated if the employee and employer agree on it in writing. If you’re terminating an employee, you must give notice depending on the type of employment contract and how long the employee has worked for your company.
Trust Globalization Partners to Join Your Team
Globalization Partners will act as a part of your company to make your expansion easy and fast. Contact us today to learn more about Zimbabwe payroll outsourcing.