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
As regras de tributação da Letônia se aplicam a empregadores e funcionários. 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. Conosco, você pode ter certeza de que todos os funcionários serão pagos no prazo e em conformidade, liberando você para se concentrar em outros aspectos importantes do seu negócio.
How to set up a payroll in Latvia
Antes de começar a configurar sua folha de pagamento na Letônia, você precisará de uma subsidiária registrada. Sem uma entidade incorporada, você não pode contratar funcionários, adicioná-los a uma folha de pagamento, pagá-los ou começar a trabalhar no país.
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.
Termos de direito/rescisão
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. Os funcionários também têm direito ao pagamento de indenizações com base nos anos de serviço.
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.