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.
Funcionários e empregadores contribuem para a Previdência Social todos os meses. Os funcionários colocam 9.45% de seu salário bruto, enquanto os empregadores devem doar 12.15%. 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
Cada empresa tem necessidades diferentes, e é por isso que você tem várias opções de folha de pagamento no Equador, incluindo:
- 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. Conosco, você pode ter certeza de que todos os funcionários serão pagos em dia, liberando você para se concentrar em outros aspectos importantes do seu negócio.
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.
Termos de direito/rescisão
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.
Simplifique a gestão global da folha de pagamento com o G-P.
O G-P simplifica cada passo do processo de gestão da folha de pagamento com a Global Employment Platform. Pague sua equipe com confiança em qualquer lugar do mundo em moedas com nosso sistema de folha 150 de pagamento automatizado e pontual de 99%, tudo com apenas alguns cliques. Nossos produtos também se integram às principais soluções de HCM, sincronizando automaticamente os dados da folha de pagamento dos funcionários em todas as plataformas para criar uma fonte confiável e conveniente de verdade para as equipes de RH.
Entre em contato conosco para saber mais sobre como podemos apoiá-lo.