- Overview: Nepal
- 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 Nepal
One of the first questions you may have when considering expanding globally is about the legal framework for different types of business entities. While this can be a complicated topic, there are some essential basics to help you understand:
All businesses, whether in your home state or another country, have a legal structure that dictates exactly how the business will be run and who is responsible for what. These structures will vary somewhat depending on where you’re doing business. Some structures are more complex and expensive than others, but they all have benefits and drawbacks.
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.
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 and payroll 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.
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.
10 Burdens a Global PEO Can Relieve for Your In-House HR Department
- Global expansion complexity
- Global payroll administration
- Employee benefits administration
- Drafting compliant employment contracts to adhere to local labor and tax regulations in 190 countries
- Lengthy onboarding
- Complex and risky offboarding
- Background checks
- Workforce compensation administration
- Compliance assistance
- Guidance on best practices of voluntary benefits provisioning
What is a Global PEO?
A PEO, or ProfessionalEmployment Organization, is a company that contracts with businesses going global to provide global employment services. These include global payroll and benefits administration, tax reporting, workers’ compensation insurance, unemployment insurance claims management, employee screening, background, criminal, and other checks, legal and regulatory compliance assistance, HR consulting, immigration services, and other financial services. Businesses can focus on their core competencies and goals by outsourcing these time-consuming and complex tasks to a PEO.
This co-employment relationship lets you focus on company growth while the Global PEO and payroll solution handles all global employment issues across multiple jurisdictions.
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 Organisations can provide valuable services and expertise that businesses might not be able to access on their own. Using a PEO can be a great way for businesses to improve efficiency, save time and money, and gain access to valuable resources and expertise.
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 Nepal without establishing a legal business entity.
|Our Global PEO&Payroll||Client|
|Employment risks mitigation|
|Tax compliance & payroll processing|
|Incorporation costs||no need for own
|Coverage||190 countries||190 countries|
Why Use a Global PEO?
With a global PEO partner, you can test the waters before making a permanent commitment. Before you decide to invest in offices, equipment, and employee training at an overseas location, you’ll get valuable information about whether the location will be successful by seeing how well operations are received via a third party before committing to managing them yourself.
In addition to helping with taxes and payroll, global PEOs can also help handle things like relocation, providing temporary housing and support while you find a permanent location for your employees to live.
A global PEO can provide advice on international and local employment laws, tax, and compliance regulations. Suppose you hire people abroad and they start working for you without guidance. In that case, there is a risk that their expectations might not match up with reality—setting yourself up for an unpleasant surprise down the line when they realize their salary or work conditions aren’t what they had been promised.
Many businesses use PEOs (Professional Employment Organizations) to take care of their HR needs abroad. A global PEO is an organization that provides services such as payroll and benefits without actually employing workers itself—instead, they simply manage employee records so that you don’t have to worry about it yourself. When using a PEO, you’ll need to set up an account with them to file payroll reports online.
How to Choose a Global PEO (Professional Employer Organization) in Nepal?
As you consider hiring a Professional Employer Organization (PEO), carefully research the company. A PEO supports a business’ human resources operations outside its owner’s area of expertise. When businesses outsource their HR operations, they can save money on labor costs and gain access to an array of benefits and services.
To choose the best PEO for your business or organization, you must evaluate multiple factors, including location, industry experience, breadth of services and benefits, and fee structure. A good PEO will provide HR solutions to a variety of industries and business sizes. It also should have a strong track record with many satisfied clients.
The cost of a global PEO and payrol will vary depending on the spectrum of services your business needs. Before you sign a contract, read it carefully and be sure it matches your needs. Consider how each PEO’s solution and service could meet your current and future needs. Some may offer a full suite of global employment and HR services, while others specialize in international payroll or benefits administration.
Acumen International – Your Single Point of Truth and Global Employment PEO Solutions Provider in Nepal
- 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 in your corner, you can quickly and easily onboard and compensate your employees without risk of legal repercussions
- Acumen Global PEO and payrol protects your company’s Intellectual Property rights
Global Employment Services: How a Global PEO can Help You in Business Transition
Acumen International PEO offers a unique blend of experience and service suite, providing global employment opportunities that are genuinely global-ready. If your company is working in transition, such as going through an acquisition or merger, or if you are experiencing a company liquidation, Acumen International can find a legal and compliant solution to hire your employees—anywhere in the world! Many companies struggle with handling the employees being left behind during these times of transition. It’s common for employees to feel insecure about their future employment prospects, particularly when they have been forced out of their positions.
This can also be problematic for companies, who will likely have open positions that need filling but still have lingering contracts to fulfill. In both cases, having a resource like Acumen International PEO can ensure that the company’s business continues without being negatively affected by the change. When you’re working with Acumen International, we take care of all the paperwork and legal obligations so that you can focus on completing your transition plans. We also handle everything from payroll, benefits, and even full payroll tax administration for all our employees worldwide. This gives employers peace of mind that all of their global obligations are fulfilled while allowing them to focus on their transition plans.
A reduction in the workplace can be a scary time for employees. Global PEO and payroll can provide outplacement services to help reduce the risk and ensure downsized employees have some assistance while searching for a new employer.
What Services Can a Global PEO Provide in Nepal?
- Human resources administration, including payroll, taxes, and benefits administration; employee training and development; recruitment; employee relations; compliance training; background or education checks; timekeeping services;
- Regulatory compliance assistance, including payroll tax law and reporting requirements;
- IP protection and offboarding;
- Hiring and HR compliance services, helping you navigate local regulations and avoid prohibited HR practices, including discriminatory job listings, Illegal criminal background checks, misclassified workforce, inaccurate payroll, and tax payments;
- Human resource support;
- End-to-end talent management, including recruiting, onboarding, engagement, performance management, and termination (upon employer approval);
- Liaison with legal counsel on employment issues such as discrimination, wrongful termination, sexual harassment, whistleblower protection, non-compete agreements, severance agreements, and other employment law matters.
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.
Disclaimer: Any above information is subject to changes imposed by Nepal’s laws. To get the latest updates on taxation in Nepal and 190 countries worldwide, contact Acumen’s team of global employment experts.