Payroll outsourcing in Guatemala is the perfect option if you already have a company in Guatemala or are thinking of registering one. One of the main important tasks is handling payroll responsibilities. Outsourcing the payroll of your company can help you focus on other areas of the business, as well as resources and constant dealing and communication with the authorities.
Guatemala is a country in Central America known as a very popular travel destination for tourists that love extreme sports, trekking, and being in touch with nature. The country has many beaches, waterfalls, and volcanoes, as well as many animals and species that can only be found in that unique region.
Payroll in Guatemala
These are some of the general information to keep in mind about payroll and general employee benefits in Panama. These can vary depending on the industry, type of work done, and other criteria.
For daytime workers, it can be from 6 to 8 hours a day, from Monday to Friday or Saturday, depending on the agreement with the employee. The total accumulated number of hours a week worked can not be more than 48.
From 8 pm to 6 am it is considered nighttime, and employees can’t work more than 6 hours or an accumulated 36 hours a week.
For overtime work, that exceeds the maximum 48 hours allowed, the employee is paid at 150% of the normal pay.
Paid Time Off (PTO): Employees have 15 days of paid vacation per year working in a company
Public Holidays: There are a total of 12 National Public Holidays in Guatemala
Maternity Leave: Mothers have a total of 84 days of maternity leave, starting from a month before the expected due date.
In Guatemala, the minimum wage depends on the industry you’re working in. In the agricultural industry it is at 2,742.37 GTQ, followed by exporting or maquila at 2,581.76 GTQ, and nonagricultural activities at 2,825.10 GTQ.
Remember that employees working at a minimum wage also are entitled to additional monthly compensation of 250 GTQ.
The employer and the employer make the contributions both:
These are the contributions paid by the employer:
Social Security: 10.67%
Workers Recreatonial Institute – IRTRA (for private companies only): 1%
And these are the contributions paid by the employee:
Social Security: 4.83%
Why outsource the payroll of your company?
Outsourcing the payroll tasks of your company in Guatemala can give you and your team the freedom to focus on other areas of the business. Payroll can seem like a daunting task, especially in a new country with contact changes in regulations and laws.
Outsourcing can be the best option for companies that are first starting operations, as well as companies that are already established and are looking to optimize their processes, relieve their team of the payroll workload, and reduce costs.
It is important to have in mind the advantages and disadvantages of both, doing the payroll in-house or outsourcing it, and if necessary discussing it with other areas of the company, such as accounting, legal, etc.
Benefits of outsourcing payroll tasks
Local expertise, experience, and continuous support
Outsourcing companies work with the best-trained skilled professionals with years of experience in their field. They’re also in constant training and always aware of all law and regulations updates and changes. This is especially helpful if your company is based in another country and just starting operations in Guatemala.
Furthermore, as a company that offers outsourcing services, our priority is always to support the development and growth of your business. That’s why we give you constant and continuous support, which allows us to solve any last-minute problems or requirements.
Low risk of errors
Outsourcing the payroll decreases the possibility of mistakes and errors that can lead to sanctions and fines from the authorities. Outsourcing companies make sure all their actions comply with local regulations and are in constant training to stay up to date with changes and new laws.
Outsourcing is also a common alternative for businesses that want to reduce some costs. In general, companies that choose to outsource their payroll save up to 18% in comparison to the companies that do it in-house.
What tasks can be outsourced?
At Easyco, our goal is to make your company in Guatemala run as smoothly as possible. That’s why we’ve compiled a list of payroll services designed to cater to all your business needs. Keep in mind that if you need any additional service we can also help you, just send us a message with your requirements and we’ll get back to you as soon as possible!
Calculation of paycheck
Direct deposit to multiple accounts
Payroll tax comprehensive service
Reporting of employee benefits
Usage tracking and accrual – Vacation, Holiday, Sick, Personal Time, PTO
Digital checks in PDF format
Reports in a standard format and client-developed reports
Guidance for employee insurance
Customer support via e-mail or Whatsapp
Get Assistance from Easyco Experts!
Guatemala is in constant growth and always looking to simplify its processes. To make sure you register your company in the right way, you can get in touch with us, and our team of experts is going to make sure the registration of your company in Guatemala is done successfully and in the least amount of time possible.
At Easyco, we make company formation in Guatemala easy; our team of corporate experts has vast experience helping companies and individuals register their business in Guatemala, with a proven track record of success across all of our services. Easyco aims to tackle the complex company formation processes across LATAM and makes business registration easy by providing a hassle-free online company registration experience. Start your company in Guatemala today!
Easyco also provides additional services to guarantee your company’s compliance, which include: