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Payroll in HnHonduras.






Country Capital



Lempira (HNL)

One of the first factors to focus on during an expansion is payroll. You have to learn a new country’s set of employment compliance laws and customs and also figure out which Honduras payroll option is best for your company. Instead of adding another stressful component to your expansion, you can place your payroll on G-P’ shoulders.

We offer Honduras payroll outsourcing to help you stay compliant and productive. As a global PEO, we use our existing Honduras subsidiary to help you run your company in a few days instead of setting up a subsidiary and waiting a few months. When you choose to run your payroll with us, you can feel confident that you’ll stay compliant.

Taxation Rules in Honduras

As an employer, you have to worry about your own taxes and your employees’ contributions. Employers contribute 3.5% of all employees’ monthly wages to Honduras’ social security plan. You also need to contribute 4% to an unemployment benefits fund.

Individuals living in Honduras for more than three months are considered residents and must pay income tax. Employers should withhold employees’ income tax since individuals only receiving money from one source do not have to file a tax return. Honduras uses a progressive income tax scale ranging from 0-25%, and employees owe more as their income increases.

Honduras Payroll Options for Companies

You don’t have to simply run payroll out of your subsidiary. You have four different Honduras payroll options, including:

  • Remote: Parent companies already running payroll may want to add the subsidiary’s employees to that international plan. However, employees from different countries will have separate tax laws and regulations.
  • Internal: If you plan to operate in Honduras long-term, you may want to operate your own payroll out of the subsidiary. Doing so is a good option for larger companies with the budget to hire a full HR staff.
  • Outsourcing with a local company: You can also choose to work with a local Honduras payroll processing company that will outsource your payroll. Keep in mind that you’ll still be held compliant with this solution.
  • Global PEO: Working with a Global PEO such as G-P for Honduras payroll outsourcing is the best way to outsource your payroll and compliance. You won’t have to worry about any aspects of your payroll when you work with us.

How to Set Up a Payroll in Honduras

Traditionally, you’re required to set up a Honduras subsidiary before you can organize your payroll. Depending on where you incorporate and what entity you choose, it could take anywhere from weeks to months before you can operate in Honduras. Working with G-P will shorten the process. We’ll set up your locally compliant Honduras payroll and help you get started working in a few days.

Entitlement/Termination Terms

Terminating an employee is not always easy in Honduras. You should draft certain entitlement and termination terms in an employment contract before choosing a Honduras payroll option. For example, the required notice period of termination ranges from 24 hours to two months, depending on how long the employee has worked for you. Severance payments also range from a minimum of 10 days to 20 days according to the employment time, after one year of continuous service, employees are entitled to one month’s salary for each year of service, up to a maximum of 25 months’ salary.

Payroll Processing Company in Honduras

If you’re ready to expand and need Honduras payroll outsourcing services that you can trust, contact G-P today.


THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). G-P does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect G-P’s product delivery in any given jurisdiction. G-P makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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