Latvia is a small country that’s part of the Baltic states, making it a great location for companies that want to form relationships with other businesses in Europe. Although it’s exciting to form a new company location, you must first figure out how to set up a Latvia payroll and set up an entity to stay compliant.
Instead of worrying about the different Latvia payroll options, G-P offers a better alternative. As a global Employer of Record (EOR), companies can leverage our existing subsidiary to hire employees and streamline payroll. Instead of navigating the complexities of global expansion alone, you can rest assured that with G-P, your teams will be paid on time and compliantly, regardless of geography.
Taxation rules in Latvia
拉脫維亞的稅務規定適用於雇主和員工。 The country uses a pay-as-you-earn (PAYE) system. Employers have to contribute 23.59% of wages to social security, and employees contribute 10.5%. Since employers need to deduct income taxes at the source, it’s important for you to understand all of the country’s tax rules and regulations or work with an expert.
Latvia payroll options for companies
You have 3 different Latvia payroll options to choose from, including:
- Internal: You can set up your own Latvia payroll if you have a subsidiary, but you’ll need a large HR team to support it. Usually, this option only works for larger subsidiaries that also have a big budget and a long-term commitment to Latvia.
- Latvia payroll processing company: A local Latvia payroll processing company is an outsourcing option for your company, but with this solution, you’ll still be responsible for all of the company’s actions and compliance matters.
- G-P: The easiest way to run payroll in Latvia and stay compliant is partnering with an Employer of Record (EOR) like G-P. 在我們這裡，您可以放心，所有員工都將準時且遵守法規地獲得報酬，讓您得以專注於業務的其他重要方面。
How to set up a payroll in Latvia
在您開始設定拉脫維亞薪資單之前，您需要註冊的子公司。 如果沒有法人實體，則您無法雇用員工、將員工加入薪資單、支付員工薪水或開始在國內工作。
Working with G-P doesn’t equal the same requirement — you can use our EOR instead of establishing your own subsidiary. Instead of waiting months, you can start hiring and paying your teams in minutes with G-P.
權限/終止條款
Hiring and terminating employees is often difficult in another country, which is why adding entitlement and termination terms to employment contracts before choosing a Latvia payroll option will help you stay compliant.
The country allows fixed-term contracts for up to 2 years, and you can also hire employees under a probationary period of up to 3 months. Notice periods for dismissal range from 10 days to 1 month, depending on how long the employee has worked for the company. 員工也有權根據服務年資獲得遣散費。
透過 G-P 簡化全球薪資發放管理。
G-P 利用我們領先市場的Global Employment Platform，簡化薪資管理流程的每個步驟。 使用我們 99% 的準時自動薪資系統，在世界任何地方都能放心地以150貨幣支付您的團隊，只需按幾下即可完成。 我們的產品也與領先的 HCM 解決方案整合，自動同步跨平台的員工薪資資料，為人力資源團隊建立一個可靠、方便的事實來源。
請聯絡我們，以進一步瞭解我們可以如何為您提供支援。