Employ Candidates Compliantly in Armenia

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  1. Overview: Armenia
  2. Global PEO and payroll
  3. Global HR Compliance
  4. Expand without a company set up
  5. Contractor vs. employee: which is better?
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Global PEO and Payroll in Armenia

As you expand your business operations into new countries, it is essential to understand that each expansion is its unique challenge. Various factors, such as local and home country laws, the type of activities undertaken, and your company’s goals and risk tolerance will dictate your compliance obligations and budget. By carefully considering all of these elements, you can ensure a successful expansion into any new market.

Acumen’s Global PEO and Payroll solution was designed especially for companies like yours, to smooth the way for quick, easy and risk-free business operations in Armenia, without having to establish a legal business entity.

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Global Employment Challenges and Pitfalls to Avoid 

When you’re hiring a staff to work overseas, some challenges come with that far beyond the nuts and bolts of finding and vetting candidates. These challenges are often overlooked by companies when they think only of locally-hired employees, but can have extreme consequences for businesses who employ people internationally.

Why is this? Because if you’re not careful, you might find yourself unwittingly breaking one employment law regulation or another in your new country. This could lead to fines, other legal issues, and negative public exposure for your brand. It’s not just about being bad for your business, though; it’s also about being bad for the people who work in your company.

Employment Taxes

There are many different types of taxes that businesses have to pay, but employment taxes are one of the most important. These taxes can vary significantly from country to country and can be a large portion of a monthly salary.

In-country Employee Registration

It is essential to ensure that employees are properly registered with the local authorities before they start work. Failing to do so can result in penalties for both the employee and the employer.

Payroll Calculations: Country-specific Requirements

In many countries, payroll calculations vary significantly. For example, employees in some countries may receive a 13th and 14th-month salary halfway through the year or at Christmas as standard. Thus, it’s important to be aware of the payroll practices in your country of employment.

Some countries have different rules when it comes to employment contracts. To avoid any surprises, it is crucial to understand how payroll calculations work in your new country. In some cases, you may be responsible for paying your employees for the entire duration of their contract even if they are not performing as expected or you want to end their employment early. This can be a financial shock to foreign employers who are not used to this practice.

For this reason, it is essential to ensure that you review and understand the terms of the employee’s contract before hiring them, so you know what to expect.

End of Financial Year Reporting

The financial year for many countries ends in March and companies that have a presence in more than one country need to produce financial reports for each country and send them to the relevant government bodies. With the end of the financial year approaching, accountants are busy at work preparing reports, some of which can be complex and difficult to navigate through as they may be on foreign websites with little or no English language support. It is important that you get these reports lodged on time as it could result in late payment penalties.

A lot of these reports need to be completed in the local language, so it is recommended that you use an accountant specializing in the country you are based in to ensure compliance before lodgement deadlines.

This is the reason why many companies outsource payroll management to a global Professional Employer Organization (PEO) as they have experts with deep knowledge of local labor laws and tax regulations in each jurisdiction. In such cases, a Global PEO will ensure compliance with local employment and tax requirements.

Local Employment Contracts Compliance

As an employer, it is crucial to have local employment contracts that are compliant with the law of the jurisdiction in which your employees work. These contracts should be provided in both English and the local language. Do not simply copy and paste your existing contract template from your home country – this could result in non-compliance and serious legal consequences.

When recruiting employees for your business, it is critical to ensure that their employment contract is appropriate for the country where they will be working. A Spanish employment contract may not be valid in Latin America, simply because they are both Spanish-speaking countries. 

The language of the employment contract is a crucial detail to keep in mind during the recruitment process, as non-compliance to target country employment laws or any mistakes with the paperwork could cost you money, time, and potentially your business’s reputation.

Employment Contract Termination

The employment termination process can be just as important as the hiring process. This part of employment should not be taken lightly as it can have many implications and consequences, both for the employer and the employee. Therefore, it is important to carefully consider all aspects of the situation before making a decision.

The start of the termination process begins when the employee signs the employment contract. If the termination guidelines are clear and precise from the terminating an employee will be much smoother.

When setting out the terms of employment, it is important to be clear about the notice period (making sure it’s aligned with the country-specific regulations), and what is expected in terms of returning company equipment and a credit card or cash float balance. Non-compete clauses protecting your intellectual property are also important considerations. Doing so will help avoid misunderstandings and potential legal problems down the road.

If an employer does not have clear procedures for the termination in their employment contract, they may face litigation. If an employee feels they have been mistreated, they may become disgruntled and contest the termination legally. This can be costly and difficult, especially if the dispute is in another country with a different time zone and language.

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What is a Global PEO?

A global PEO is an excellent way for a business to shield itself from the administrative burden of HR. The most common global PEO services include payroll, tax filing, benefits administration, and workers’ compensation coverage; however, other crucial functions include compliance monitoring, policy development, employment contracts, onboarding, and offboarding handling. A global PEO provides its clients with invaluable flexibility and costs savings, helping make your accounts payable much easier while saving you valuable time!!

17 Burdens a Global PEO Can Relieve for Your In-House HR Department

  1. Global expansion complexity 
  2. Global payroll administration
  3. Employee benefits administration
  4. Drafting compliant employment contracts to adhere to local labor and tax regulations in 190 countries
  5. Lengthy onboarding 
  6. Complex and risky offboarding
  7. Background checks
  8. Workforce compensation administration
  9. Compliance assistance
  10. Guidance on best practices of voluntary benefits provisioning
  11. Immigration and relocation support for your ex-pat workforce, such as visa sponsorship and securing work permits
  12. Lack of institutional knowledge
  13. IP right protection
  14. Lack of local and international legal support
  15. Convert local contractors into full-time employees
  16. Business transitions: acquisitions, mergers, close downs
  17. Need to deal with multiple global employment service providers

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How Does a Global PEO Work? What Is the “Co-employment” Model?

Organizations that partner with a Global Professional Employer Organization (PEO) enjoy many benefits. By working with a PEO, businesses can take advantage of a co-employment relationship which can free up time and resources that can be better spent on strategic decision-making and business growth. Global PEOs are responsible for payroll, withholding and paying payroll taxes, managing compensation and benefits coverage, and providing HR compliance guidance.

The global PEO becomes a co-employer of the organization’s employees, and PEO shares the employment responsibilities of the client organization. PEOs assume many administrative and HR compliance tasks that businesses would otherwise have to handle, giving business owners and management teams more time to focus on running their companies.

In addition, Professional Employment Organizations can provide valuable services and expertise that businesses might not be able to access on their own. Using a PEO and Payroll solution can be a great way for businesses to improve efficiency, save time and money, and gain access to valuable resources and expertise.

What Services Does a Global PEO (Professional Employment Organization) Provide?

  1. Global Payroll management;
  2. Compliance with local tax rules (file & deposit) of the country where the EOR company is located;
  3. Handling compliant employment contracts: 
  4. Background, education, and other checks; 
  5. Onboarding and termination processes, as well as employee’s compensation;
  6. Arranging visas and work permits for employees;
  7. Ensuring the working process is organized under local labor laws;
  8. Processing workers’ medical insurance and other benefits (day-offs, bonuses, and more);
  9. Global employment process maps, matter maps, employment guides, and other documentation.

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How to Choose a Global PEO (Professional Employer Organization) in Armenia?

If you’ve considered hiring internationally, you may be considering the pros and cons of partnering with a global PEO. These organizations help you take advantage of international talent, particularly in countries where the workforce might otherwise be underutilized. Establishing an overseas subsidiary and employing a foreign workforce can be complicated, though—especially if it’s your first time doing it.

To get started, first decide what it is you need to accomplish through your international expansion. Will you be looking to expand into new markets? Are you looking to improve efficiency by outsourcing some jobs? Do you have temporary needs that could be met by hiring a temporary employee or contractor? Once you know what you need, you can look for a global PEO that can address those needs.

Remember that each business is unique and requires a customized approach. The right global PEO partner will work with your team to understand your goals and challenges before recommending solutions. Make sure they can provide the services and coverage in all your business areas—including payroll and compliance, as well as HR management services such as benefits administration and workers’ compensation insurance. Get references from other clients in your industry to ensure you make the best choice for your business.

Acumen International – Your Single Point of Truth and Global Employment PEO Solutions Provider in Armenia

  1. 100 % compliant, quick, easy market entry. Acumen Global PEO is your local legal entity, helping you reduce the cost and time associated with incorporating
  2. Immediate global employment service coverage in 190 countries
  3. Both a single point of contact and a dedicated account manager for your project for all target countries
  4. Compliant and secure global employment operations. We help you adhere to all local laws and regulations in 190 countries
  5. A single contract for all in-country services (employment, immigration, legal, etc.)
  6. A single PEO provider assumes full responsibility for your international employees in multiple countries
  7. Payments are made within the UK or to the UK bank company account
  8. Fully compliant with standardized procedures and reporting systems
  9. You can delegate to Acumen Global PEO and Payroll solution all HR responsibilities Payroll & benefits administration, background checks, and HR helpdesk
  10. Standard payroll breakdowns for all target countries
  11. 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
  12. Full 100% fee money-back guarantee for the employee or contractor payment delays.
  13. Tailored and 100% compliant employment contract drafts
  14. With Acumen in your corner, you can quickly and easily onboard and compensate your employees without risk of legal repercussions
  15. Acumen Global PEO protects your company’s Intellectual Property rights

Acumen International is here to help, from payroll and tax management to social security disbursements and immigration services. We’ll give you the peace of mind you need and reduce your company’s legal costs by 50% or more.

Our Global PEO&Payroll Client
Employment risks mitigation
Tax compliance & payroll processing
Incorporation costs no need for own
entities
Effort 90% 10%
Coverage 190 countries 190 countries

Global PEO —  One-Stop Destination for Global Businesses

If you’re looking to streamline your company’s operations and get a handle on global workforce management, partnering with a global professional employer organization (PEO) can be a great solution. PEOs can provide a full suite of services to help you replace the following numerous vendors.

  1. Payroll Company
  2. Employee Benefits Broker
  3. HR Consultants
  4. Background Checks Vendors
  5. IP Attorney
  6. Tax Advisor
  7. Translation service
  8. Legal Advisor
  9. Immigration Advisor
  10. HR Compliance Advisor.
  11. Licensing Consultancy

Global Payroll Management & Compliance Considerations

Managing employees in different countries can be a complex and challenging task. Employees may need to be registered and taxed differently in each country, and there may be other laws that need to be followed. This can make it very hard to keep track of everything and ensure everything is done correctly.

When it comes to payroll, there are many different regulations that you must follow to avoid penalties or litigation. Each country has its laws and regulations, but some standards apply internationally. You must know and adhere to tax deadlines, withholding and reporting laws, and regulations requiring employee tax slip signatures. If you fail to adhere to these payroll compliance rules, you could face severe penalties that could negatively impact your business.

Global payroll management is a complex process that requires careful consideration of various factors. Payroll specialists must consider local regulations and taxation requirements, which can be time-consuming and difficult to navigate. However, by addressing some key challenges and partnering with a Global PEO, organizations can ensure compliant, accurate, and timely payments.

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 Armenia

Employment related taxes

Corporate income tax (CIT). Armenian-resident entities, and non-resident entities doing business in Armenia through a Permanent establishment (PE), are liable for CIT. Armenia taxes residents on their worldwide income; non-residents are subject to Corporate Income Tax (CIT) only on their Armenian-source income.

Payroll Cycle in Armenia

Salaries are paid on a monthly basis. Payday is the 15th of the following month.

13th salary in Armenia

There is no mandatory or customary 13th salary payment in Armenia.

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How Acumen’s International PEO and Payroll Service can Benefit Your Business in Armenia

Compensating your local and expat workforce in Armenia and closely adhering to Armenian 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 Armenian 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 Armenia 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 Armenian laws. To get the latest updates on taxation in Armenia and in 190 countries worldwide, contact Acumen’s team of global employment experts.

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