Global payroll in Colombia

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Rivermate's global payroll solution helps companies hire remote employees in Colombia . We take care of global payroll, taxes, benefits, compliance and HR activities. So you can focus on growing your business. Our global payroll solution is beneficial to companies that want to hire remote employees in a breeze. On this page you will find employment information for Colombia.

1. Grow your team in Colombia with Rivermate as your global payroll provider

Payroll, benefits, taxes, and compliance can be difficult to manage in , particularly if you don't have established local relationships. You can hire employees in effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

2. Introduction to global payroll in Colombia

If you are interested in hiring a remote team in Colombia, or even just individual remote employees in Colombia, then you have come to the right place!

Rivermate is an Employer of Record (EOR) that offers Colombia payroll solutions. As a Colombia payroll provider, we will cover everything from salary, benefits, employer-to-employee contributions, and especially payroll compliance in Colombia. We are confident Rivermate’s payroll solutions Colombia will help you grow as a business—because now, you won’t have to worry about your payroll solutions Colombia. We take care of everything payroll!

With Rivermate, you can run Colombia payroll services in just one click—regardless of currency, benefits, insurance, and your local labor laws. Everything is automated. Our priority is for you to focus on your company’s strategy and growth.

Our Rivermate Global Payroll services are made especially for startups and scaleups. We know that startups try to be extra prudent when it comes to choosing a payroll provider, so it is our mission at Rivermate to be your most reliable and cheapest payroll provider option. So if you’re looking for global payroll providers for small businesses, look no further and book a call with us now!

3. How to set up global payroll in Colombia

You'll need some personal information from your employees, such as their passport, proof of health insurance coverage, and bank statements, before you can set up your Colombia payroll. Each employee must also register for taxes before they can be added to your payroll. Every employee must have an employment contract, be registered for social security, have public health coverage, be registered for a severance fund, and have workers insurance.

4. Taxation rules for global payroll in Colombia

When setting up payroll in Colombia, you must adhere to a number of taxation rules. Employers, for example, are required to make social security payments that include:

1. Health: Employers pay 8.5% of this portion of social security while employees pay 4%.

2. Occupational risk: The employer must fully pay this risk, which is between 0.348% and 8.7% of the salary.

3. Family welfare fund: Employers must contribute 9% of their monthly payroll to the family welfare fund.

You must also contribute 12% of an employee's salary to a pension plan. Furthermore, Colombia employs a progressive income tax system expressed in Tax Value Units (UVT). Employees with taxable income in excess of 4,100 UVT will be subject to the maximum tax rate of 33%.

5. Payroll options for companies in Colombia

Companies that wish to expand their operations globally have four different payroll options in Colombia. These payroll options are:

1. Internal Payroll. This payroll option is applicable for already established companies in Colombia. It includes devoting an entire Human Resources staff to running the company's payroll procedures.

2. Remote Payroll. Smaller firms may lack the capacity to handle their own payroll, but they may add their workers to the parent company's payroll. This action, on the other hand, requires considerable thinking. You must guarantee that you follow the rules and laws of each nation.

Working with a local outsourcing firm is one method to retain money in the local economy, but you'll still need to study all of the local rules and regulations, since you'll be held responsible.

3. Colombia payroll outsourcing: Outsourcing your payroll to an Employer of Record in Colombia, such as Rivermate, is another alternative for Andorra payroll outsourcing. We can manage all aspects of your payroll, including compliance. Send us a note and we'll get back to you as soon as possible!

6. Payroll compliance Colombia

Payroll management entails keeping accurate payroll financial records, paying employees, generating payslips, and adhering to labor laws. A Colombian payroll provider, such as Rivermate, can automate payroll to ensure timely payment of employees, as well as automatic deductions such as social security and remittance to the appropriate government agency. This ensures that your company is fully compliant.

Making sure you are in compliance with labor laws and benefits regulations such as taxes, minimum wage, leave entitlements, and other laws is part of the payroll management process. When you work with a payroll company in Colombia, such as Rivermate, all of the compliance is handled for you, ensuring that you are fully compliant with all foreign and domestic laws.

7. How to manage payroll in Colombia

Companies that have a business presence in Colombia have different ways of managing payroll. However, most of the options you have for running payroll in Colombia are either expensive or require establishing a subsidiary in Colombia. The cheapest, most efficient, and most reliable payroll processing system in Colombia is by outsourcing payroll to Employers of Record (EOR) in Colombia. Rivermate is one of those Employers of Record.

At Rivermate, we offer you the most efficient, most compliant, and cheapest HR and Payroll Management services in Colombia. We do this by taking care of your payroll-related needs, such as keeping track of your employees’ financial records, including incentives, gross and net salary, and payslips, all the while staying compliant with the labor laws in Colombia. Because we do your online payroll management for you, you can have absolute focus on your business’ strategy and growth.

Rivermate is all about growth through collaboration and we achieve this by offering the most reliable yet cheapest services for managing payroll for small businesses in Colombia.

8. Entitlement and termination terms in Colombia

When an employee is terminated, the cause for termination must be given to him or her in writing. If the employer initiates the termination, the employer is not required to provide a reason for the termination unless there is an accusation of an unjust cause. Employers must get special clearance to fire pregnant or handicapped employees. To dismiss a unionized employee, the employer must obtain approval from a labor judge. If an employee's employment contract is terminated owing to an employer violation, the employee is entitled to severance compensation.

9. Compensation in Colombia

Colombian compensation laws require that employees be paid on a monthly basis. Casual employees, on the other hand, may be paid weekly. While Colombia's minimum wage is currently 908,526 Pesos per month (2021), the country's legal minimum wage changes annually. Employers should closely monitor any changes that may affect their employees.

10. Working hours and overtime in Colombia

Colombia, on average, has a 48-hour work week. Individuals typically work five days a week for approximately 9.6 hours per day, Monday through Friday, or six days a week for eight hours per day, depending on the business.

Employees in management, domestic services, shift work, and mechanical drivers are exempt from the legal work maximum.

Work performed between 9 p.m. and 6 a.m. that is not considered overtime is compensated at 135% of the standard daytime rate, or 210 percent on Sundays.

11. Employee benefits in Colombia

Columbia offers free public healthcare to all employees. Private healthcare insurance is also provided by businesses.

Semestral Bonuses are available to employees (prima de servicios). Each year, this benefit equates to 15 days of compensation payable to the employee on the last day of June and 15 days of salary payable during the first 20 days of December. This reward is payable upon cessation of employment in proportion to the amount of time worked during the calendar semester in which the termination occurs.

12. Why choose Rivermate as your global payroll provider in Colombia

Establishing an entity in to hire a team takes time, money, and effort. The labor law in has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record (EOR) solutions in give you peace of mind so you can focus on running your business. Please contact us if you'd like to learn more about how Rivermate can help you hire employees in via our Employer of Record (EOR) / PEO solution.

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