Ecuador uses a pay-as-you-earn (PAYE) system for all income taxes. Employers are responsible for withholding the right amount for taxes from each employee’s pay every month based on their salary. Companies also need to report the employee’s taxes and deductions on a 107 Form at the end of each year.
Zowel werknemers als werkgevers dragen elke maand bij aan de sociale zekerheid. Werknemers voegen 9.45% van hun brutosalaris in, terwijl werkgevers 12.15% moeten geven. However, after the professional completes 1 year of employment, employers have to contribute to the “reserved fund” (fondo de reserva) on a monthly basis, which is an additional 8.33%.
Ecuador payroll options for companies
Elk bedrijf heeft verschillende behoeften, daarom hebt u verschillende salarisadministratie-opties van Ecuador, waaronder:
- Internal: Running an internal payroll is usually a good option for large subsidiaries with a commitment to Ecuador and a robust HR team.
- Ecuador payroll processing company: Using an Ecuador payroll processing company is great for businesses that want to outsource with a local company. You will, however, still be liable for all compliance matters.
- G-P: The easiest way to run payroll in Ecuador and stay compliant is partnering with an Employer of Record (EOR) like G-P. Bij ons kunt u er zeker van zijn dat alle werknemers op tijd worden betaald, zodat u zich kunt concentreren op andere belangrijke aspecten van uw bedrijf.
How to set up a payroll in Ecuador
Companies can’t set up an Ecuador payroll immediately. You will have to spend time establishing a subsidiary before you can choose an Ecuador payroll option.
However, G-P eliminates this requirement. By leveraging our existing subsidiary, you won’t have to go through the lengthy process and can begin hiring in minutes, not months.
Voorwaarden voor recht/beëindiging
In Ecuador, termination of employment is complex. The concept of advance notice of termination by the employer does not exist. If an employer terminates the employment without cause (which is considered a wrongful dismissal or a sudden termination) or for cause but does not follow the required process, the employee is entitled to a severance payment.
Severance pay is equal to 1 month’s salary for each year of service (or a part thereof), but no less than 3 months (or more than 25 months) of pay. Employers must pay an additional severance equal to 25% of the last salary earned multiplied by the years of service.
Termination with cause requires employers to follow a specific procedure including notification and approval from the labor inspector. If the labor inspector concludes that the termination is justified, the employment may be terminated, and the employee is entitled to pay until the date of resolution by the labor inspector.
Stroomlijn het wereldwijde loonadministratiebeheer met G-P.
G-P stroomlijnt elke stap van het salarisadministratiebeheerproces met dit toonaangevende Global Employment Platform. Betaal je team met vertrouwen overal ter wereld in 150 valuta's met het 99% tijdige geautomatiseerde loonadministratiesysteem, allemaal met slechts een paar klikken. De producten kunnen ook worden geïntegreerd met toonaangevende HCM-oplossingen, waarbij de loonadministratiegegevens van werknemers automatisch tussen platforms worden gesynchroniseerd om één betrouwbare, handige bron van waarheid voor HR-teams te creëren.
Neem contact met ons op voor meer informatie over hoe wij u kunnen ondersteunen.