- Overview: Kenya
- Global PEO and payroll
- Global HR Compliance
- Work permit for hiring expats via PEO
- Expand without a company set up
- Contractor vs. employee: which is better?
Global PEO and Payroll in Kenya
Crafting a plan for overseas expansion may already be on your to-do list. With many companies today sourcing, servicing, or selling outside of their home country, it seems like a logical next step for your business. But as the CFO or COO of a growing company, you’ll want to be sure that you have a solid plan before moving forward.
Deciding whether to set up a legal entity in the host country and, if so, what type of entity to set up will be critical to protecting your organization’s bottom line and reputation.
Establishing your own business entity in Kenya is an option to be considered as you expand abroad. But before you invest valuable resources in setting up business in Kenya, you should be fully aware of the risks involved.
Why Should You Choose a Global PEO Service Over Setting Up Legal Entities?
Opening a business in Kenya be complicated. Various tax obligations and legal responsibilities, such as end-of-year financial reporting and appointing local directors, come with it. You must also ensure that the company meets all the legal requirements in Kenya.
You’ll eventually need to set up a local entity when expanding your business into a new country. But when first starting, it’s usually best not to create a new company. Understanding and complying with local labor laws can be complex and time-consuming. Plus, payroll mistakes can lead to employee dissatisfaction, fines, and bad publicity. You can easily transition when it’s time for your company to switch from using a global PEO service to establishing your own legal entity in Kenya. But, a global PEO can be the perfect way to start if you’re just testing the waters in a new country.
What is a Global PEO?
As many companies are looking to expand their global reach, they must deploy the right global employment strategies to ensure targeted and effective results.
Global PEOs enter into co-employment relationships with their clients, meaning that the PEO becomes the employer of record for payroll and tax purposes, workers’ compensation, and unemployment insurance.
A global PEO or Professional Employment Organization helps take advantage of key benefits: established best practices with global reach, a flexible way to scale up or down as you are testing new markets or your business grows, and no need for incorporating into a foreign jurisdiction.
Why Use a Global PEO?
The best global PEO is worth its weight in gold because of the services it provides. Without this kind of global employment support and talent engagement model in today’s fast-paced workplace environment, you will most likely not be able to compete on a global scene with other companies that have one.
PEOs are an exciting new trend in the business world. Initially created to help small businesses manage their employee benefits, PEOs are now being utilized by big corporations and start-ups alike. They offer many benefits that can help companies save money, including the ability to bundle services from multiple providers, lower prices for employee benefits, coordinated global administration payroll and benefits administration, and streamlined global employment compliance.
The greatest benefit of these organizations is the ability to outsource the time-consuming tasks associated with running a company while focusing on your organization’s core business. PEO’s also work well for companies with multiple locations or remote workers because they provide uniformity regarding worker experience. They can integrate any new hires into the overall culture of your organization.
How Much Does a Global PEO Charge?
Payroll taxes and service fees can be a big burden for employers. Many companies choose to use a Global PEO (Professional Employer Organization) to help with these costs. PEOs typically charge a percentage of the total payroll, including employee insurance fees. It can be difficult to determine the actual costs for these services, especially when some employer taxes are only paid on wages up to a certain threshold.
Single Global Service Agreement
A global PEO can cover all your international projects within a single contract and add new employees and services as you expand your globalworkforce in the new countries.
No Required Minimums
We accept projects of any length, with any number of employees.
Whether you need to scale up or down, we adjust your pricing based on the project employee number.
End-to-end Global Employment Solution
We manage all your global services, including employment, recruitment, immigration, legal and global HR consulting, saving you valuable time. And Acumen International covers the cost and saves you the effort of finding and selecting local employment-related service providers.
The Remote Work Revolution & How PEOs Can Help You Adapt
As workforces continue to evolve, they demand that leaders like you shed the old work models of yesteryear and adapt to the new ones built in front of your eyes. Global PEO and payroll solution is here to help you navigate this changing employment paradigm, but only if you are willing to have an open mind about where your business is going.
Leadership teams across the globe are still struggling to figure out the best way to manage their internationally distributed workforce. Global PEOs are uniquely positioned to help companies like yours deal with these big changes, including the shift to remote work. Just a few years ago, the idea of a completely remote workforce was unheard of, but today it seems like a permanent reality for many.
Why Partnering with Global PEO Is a Win-Win Solution For Businesses
As a business owner, you face many potential threats – large and small. You must worry about compliance with labor and tax laws, social security and insurance coverage, record keeping, immigration issues, etc. It can be difficult to deal with all of these issues by yourself. Global PEO companies can help you with these issues by providing compliance support, insurance coverage, record keeping, immigration issues, and more.
When you work with a Global PEO company, they manage your global payroll and taxes so that you don’t have to worry about them. They keep everything filed properly, so local tax authorities don’t come after you for anything. A Global PEO can also ensure that you comply with labor laws so that you don’t accidentally hire someone who isn’t authorized to work in the country where you run operations. They also help your business comply with immigration laws to avoid fines or other penalties from immigration officials. Suppose your business has international clients or employees. In that case, a PEO company will also help you navigate any additional immigration regulations that might apply to those individuals and your entire organization.
If you’re looking to compliantly and quickly hire, manage, and pay employees across multiple jurisdictions via a single trusted global employment partner, then you’ve come to the right place.
Acumen International – Your Single Point of Truth and Global Employment PEO Solutions Provider in Kenya
- 100 % compliant, quick, easy market entry. Acumen Global PEO is your local legal entity, helping you reduce the cost and time associated with incorporating.
- Immediate global employment service coverage in 190 countries
- Both a single point of contact and a dedicated account manager for your project for all target countries.
- Compliant and secure global employment operations. We help you adhere to all local laws and regulations in 190 countries
- A single contract for all in-country services (employment, immigration, legal, etc.)
- A single PEO provider assumes full responsibility for your international employees in multiple countries
- Payments are made within the UK or to the UK bank company account
- Fully compliant with standardized procedures and reporting systems
- You can delegate to Acumen Global PEO all HR responsibilities Payroll & benefits administration, background checks, and HR helpdesk
- Standard payroll breakdowns for all target countries
- As soon as we receive your request for a project in any country, we will send you a payroll breakdown and offer within 2 working hours
- Full 100% fee money-back guarantee for the employee or contractor payment delays.
- Tailored and 100% compliant employment contract drafts
- With Acumen Global PEO and payroll solution, you can quickly and easily onboard and compensate your employees without risk of legal repercussions
- Acumen Global PEO protects your company’s Intellectual Property rights
We offer a comprehensive portfolio of global employment services in 190 countries. This makes Acumen International Global PEO (Professional Employer Organization) incredibly agile and able to adapt quickly to your talent acquisition needs. Our global PEO talent engagement model can help you scale up or down according to your business’s changing requirements – minimizing your global employment risk. When you partner with us, you can delegate HR responsibilities like payroll, benefits and tax administration, background checks, immigration services, and more. We take care of everything so you can focus on running your business.
Global Payroll Calculator: Accurate Global Employment Cost Estimation
When hiring employees and contractors across the globe, you may not be choosing the most cost-effective and business-friendly country.
- Do you know which country is the most cost-effective place to hire employees?
- What are the costs of entity establishment and legal representation?
- What are the payroll costs and management fees?
- What are your ongoing annual tax compliance costs?
- Are you fully aware of banking implications?
- Did you know that labor laws and hidden costs could make your company less efficient when choosing a country to run your business?
- Did you know that there could be a more cost-effective country to hire employees in and save up to 50%?
This is because countries have different labor laws, compliance, and tax regulations. What if, instead of limiting your company’s international expansion by cutting through the jungle of local regulatory compliance, tax, labor, and immigration requirements, you could have all the information of 190 countries at your fingertips?
Acumen International offers the Global Payroll Calculator to help businesses understand the compliance requirements for conducting business in a new country. Acumen’s research team tracks developments in 190 countries around the globe. It provides up-to-date data on local regulations related to tax, payroll regulations, benefits, hiring practices, compliance requirements, and other labor-related factors that impact an employer’s bottom line. This valuable information makes the Global Payroll Calculator an invaluable tool for businesses looking to expand internationally.
Global Payroll Calculator helps companies reduce labor costs by providing up-to-date information on hiring, compensation, and tax requirements. It is also an ideal tool for quickly locating employees in any country.
International Global Payroll and Taxation in Kenya
Employers and employees are each obligated to contribute to the National Social Security Fund (NSSF) and National Hospital Insurance Fund (NHIF).
13th salary in Kenya
13th month salary is not mandatory in Kenya. However, the Employment and Labour Relations Court recognises that, where an employer has consistently and persistently paid a 13th month cheque/bonus and such practice or custom is reasonable, certain and notorious, it becomes an implied term of the employment contract that can be legally enforced, provided that sufficient and clear evidence is placed before the Court.
How Acumen’s International PEO and Payroll Service can Benefit Your Business in Kenya
Compensating your local and expat workforce in Kenya and closely adhering to Kenyan taxation requirements can divert your attention and resources from activities that help your business grow. A reliable global employment solution like Acumen’s Global PEO and Payroll service can take a substantial burden off your shoulders so you can focus on running your company.
Outsourcing the administrative and compliance tasks involved in employee payroll is one approach, but we have a better solution. Acumen International offers a global PEO and payroll solution that goes beyond outsourcing. We hire and compensate your global workforce on your behalf, and take care of all the details of payroll while ensuring full compliance with Kenyan labor and taxation laws.
It is important to note that Acumen does not provide international global payroll services as a standalone solution, but only as a part of our global PEO and Payroll solution.
Our comprehensive global PEO and payroll services are just some of the benefits of partnering with Acumen International. We make it easy for you to achieve your business goals in Kenya by officially employing and compensating your best selected global talent – both locals and expats – without concerns for legal and compliance risks faced by global employers.
Disclaimer: Any of the above information is subject to changes imposed by Kenyan laws. To get the latest updates on taxation in Kenya and in 190 countries worldwide, contact Acumen’s team of global employment experts.