- Overview: Philippines
- Global HR Compliance
- Global PEO and Payroll
- Work Permit for Hiring Expats via PEO
- Expand without a company set up
- Contractor vs. Employee: Which Is Better?
PEO and Payroll in the Philippines
If you plan to hire internationally, you may consider the pros and cons of partnering with a global PEO Professional Employer Organization) in the Philippines. 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 and you do not speak the native language.
Setting up your business entity in the Philippines is an option to be considered as you expand abroad. But before you invest valuable resources in setting up business in the Philippines, you should be fully aware of the risks involved. 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 HR functions? 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 that a Professional Employment Organization provides 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.
What is a Global PEO?
A global PEO, or global Professional Employer Organization, is a company that specializes in handling global employment and human resource functions for other businesses. Businesses that partner with a PEO can outsource many of their HR needs and focus on running their core operations because PEOs can provide a wide range of services in the Philippines, such as:
- payroll processing,
- benefits administration,
- tax reporting,
- workers' compensation insurance,
- unemployment insurance claims management,
- employee screening,
- legal and regulatory compliance assistance,
- HR consulting,
- immigration services,
- other financial and HR services.
With a robust global PEO, you can make global employment decisions quickly and confidently – without getting buried in immigration or labor compliance work. You can quickly and easily employ your pre-selected world-class talent from any country. Perhaps more importantly, with our Global PEO services, we minimize your permanent establishment, employee immigration, or misclassification risk – leaving you free to focus on running your business.
With a Global PEO, you don't need to worry about the cost of maintaining a workforce, recruitment, securing visas or work permits for foreign hires, issuing documents, managing payroll and employee benefits, collecting payroll tax, and paying personal and corporate taxes. Entering into a partnership with a global PEO who is committed to helping provide excellent employment opportunities.
This partnership will enable you to dramatically expand your services and reach in any part of the world. 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 the Philippines without establishing a legal business entity.
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 the UK without establishing a legal business entity.
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.
|Our Global PEO&Payroll||Client|
|Employment risks mitigation|
|Tax compliance & payroll processing|
|Incorporation costs||no need for own entities|
|Coverage||190 countries||190 countries|
What Services Does a Global PEO (Professional Employment Organization) Provide?
- Global Payroll management;
- Compliance with local tax rules (file & deposit) of the country where the PEO company is located, including the Philippines.
- Handling compliant employment contracts.
- Background, education, and other checks;
- Onboarding and termination processes, as well as employee’s compensation;
- Arranging visas and work permits for employees;
- Ensuring the working process is organized under local labor laws;
- Processing workers’ medical insurance and other benefits (day-offs, bonuses, and more);
- Global employment process maps, matter maps, employment guides, and other documentation.
Benefits of Using PEO Services in the Philippines
1. Reduced time spent on HR procedures, paperwork, and compliance
Outsourcing these operations to a PEO allows more time for 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.
2. Employment management cost control in the Philippines
Payroll, benefits, taxes, employee leaves, holidays, and social contributions are centrally managed by one trusted global PEO partner in the Philippines at competitive rates. 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.
3. Expert advice on employment and tax legislation in the Philippines
The professionals at your Global PEO can provide expert advice on employment law and dispute resolution. Case studies show that a professional PEO partner can deliver the value of more than $2 million per year per client through efficiency gains and reduced non-compliance risk.
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.
4. A Comprehensive global employment service portfolio
Global Professional Employment Organisations can provide valuable services, such as immigration support and expertise that businesses might not be able to access independently. 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.
Our experienced HR professionals are here to help with the many challenges of international expansion. From creating a successful employment strategy to providing guidance on proposed countries’ modes of entry, we can help you get started in your new venture. With our expert advice, you’ll be able to create compliant agreements and policies and ensure a smooth transition for your employees.
5. Global PEO can support you in a business transition
The effects of an acquisition or merger on a company's employees can be challenging to predict. However, employers need to take steps to ensure a smooth transition for their employees, including compliance with termination procedures.
Downsizing or closing a company can be incredibly difficult, but if done correctly, it can help protect the employer's reputation and avoid unfair dismissal claims.
For these reasons, Acumen International PEO provides global employment services to companies making international transitions. A global Professional Employer Organization protects and serves the needs of employers in transition by providing them compliant and secure global employment services. By doing this, Acumen global PEO helps a client company move forward confidently, knowing its workforce and reputation are in good hands.
Acumen International - Your Professional Employer Organization in the Philippines
Navigating the Philippine legal system and adhering to regulations governing employment and taxation can be challenging for businesses, especially if you are not a native Philippine speaker. Partnering with Acumen International as a global Professional Employer Organization (PEO) provides you with the local knowledge and support you need to conduct business in the Philippines without concern for legal and compliance risks.
Whether you represent international client companies or are taking your business operations abroad, Acumen International’s Global PEO and payroll service allow you to hire and payroll local and ex-pat employees in the Philippines. With Acumen in your corner, you can quickly and efficiently onboard and compensate your employees without the risk of legal repercussions.
International Global Payroll and Taxation in the Philippines
Personal Income Tax
The Philippines taxes its resident citizens on their worldwide income. Non-resident citizens and aliens, whether or not resident in the Philippines, are taxed only on income from sources within the Philippines. Rates of tax on income of aliens, resident or not, depend on the nature of their income (i.e., compensation income, income subject to final tax, or other income).
A domestic corporation is subject to tax on its worldwide income. On the other hand, a foreign corporation is subject to tax only on income from Philippine sources.
Payroll Cycle in the Philippines
Wages shall be paid at least once every two weeks or twice a month at intervals not exceeding sixteen days. If on account of force majeure or circumstances beyond the employer's control, payment of wages on or within the time provided cannot be made, the employer shall pay the wages immediately after such force majeure or circumstances have ceased. No employer shall make payment with less frequency than once a month.
Non-payroll Taxes in the Philippines
The VAT is levied, assessed, and collected on every sale, barter, or exchange of goods or properties at the rate of 12 percent of the gross selling price or gross value in money of the goods or properties sold, bartered, or exchanged such tax to be paid by the seller or transferor.
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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.
How Acumen’s International PEO and Payroll Service can Benefit Your Business in the Philippines
Compensating your local and ex-pat workforce in the Philippines and closely adhering to Philippine 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 payroll details while ensuring full compliance with Philippine 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 benefits of partnering with Acumen International. We make it easy for you to achieve your business goals in the Philippines by officially employing and compensating your best-selected global talent - both locals and ex-pats - without concerns for legal and compliance risks faced by global employers.
Disclaimer: Any of the above information is subject to changes imposed by Uzbekistan laws. To get the latest updates on taxation in the Philippines and in 190 countries worldwide, contact Acumen’s team of global employment experts.