- Overview: Bulgaria
- 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?
Global PEO and Payroll in Bulgaria
Bulgaria can be a great place to expand your business, but there are some risks to consider before making the investment. Global expansion comes with many challenges, in particular, employment-related ones. Establishing a legal business entity in a foreign country can become a frustrating nightmare if you don’t speak the local language and understand the country’s labor and tax laws in Bulgaria. However, you can avoid this risk and fully comply with Bulgarian law by utilizing our Global PEO (Professional Employer Organisation) and Payroll solution.
There are risks involved in setting up a business entity in the country. Still, Acumen’s Global PEO and Payroll solution can help smooth the way for quick, easy, and risk-free business operations. Our solution is designed specifically for companies going global that want to avoid the hassle of establishing a legal business entity in Bulgaria. With our help, you can focus on what’s important – growing your business, and making it quick, easy, and risk-free.
What Is a Global PEO?
A Global PEO is a specialized employment company that makes international business expansion hassle-free and risk-free. Global PEO companies streamline your international hiring process, making it easier to employ workers without the costs and risks 100% compliantly. Partnering with a PEO lets you focus on your business while they handle your HR needs across the world. You can gain a competitive edge by hiring high-quality workers and streamlining their employment process via international PEO services. Instead of fussing over foreign employment paperwork and regulatory compliance details in Bulgaria on your own, you can retain a professional PEO to handle all these responsibilities -Global PEO helps companies manage their operations effectively, from payroll to HR compliance.
How Does a Global PEO Work? What Is the “Co-employment” Model?
When working with a Global PEO, employees enjoy employment benefits without the risk of being directly employed by a client company. Global PEO assumes responsibility for a business’ payroll, employee management services, and HR compliance guidance. The co-employment relationship simplifies business management by hiring a single PEO entity to manage the HR function. Employees are treated as employees of the PEO, who in turn acts as the employer of record. This allows flexibility in structuring workforces for unique talent needs.
Working with a Global PEO saves employers time, energy, and money because they don’t need to set up their entity in Bulgaria, along with HR departments or establish payroll systems. A Global PEO reduces legal liability for them by taking responsibility for withholding employee taxes and contributing employer-side payroll taxes. It also relieves them from making HR decisions that are time-consuming and cumbersome on their own.
What Services Does a Global PEO Provide?
The expert team at a global PEO partner usually provides strategic guidance and a wide array of high-quality, cost-effective services tailored to your specific requirements that can help your company grow and scale up safely. Here are some of them:
- 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 through 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.
Advantages of a Global PEO
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 Bulgaria
Payroll, benefits, taxes, employee leaves, holidays and social contributions are centrally managed by one trusted global PEO partner 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 Bulgaria
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.
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.
Acumen International – Your Professional Employer Organization in Bulgaria
Navigating the Bulgarian legal system and adhering to regulations governing employment and taxation can be challenging for businesses, especially if you are not a native Bulgarian 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 Bulgaria 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 Bulgaria. With Acumen in your corner, you can quickly and easily onboard and compensate your employees without risk of legal repercussions.
|Acumen Global PEO & Payroll||Client|
|Employment risks mitigation|
|Tax compliance & payroll processing|
|Incorporation costs||no need for own
|Coverage||190 countries||190 countries|
Global Payroll Calculator: Accurate Global Employment Cost Estimation
The Global Payroll Calculator is built by Acumen International 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 Much Does a Global PEO Charge?
The price of a PEO depends on the specific services it provides and the number of employees you have. When you sign up for a PEO, you must pay a setup and ongoing management fees. Some companies also offer discounts for large organizations that use multiple services.
International Global Payroll and Taxation in Bulgaria
Personal income tax (PIT)
- 10.58% – Social Security
- 9.76% – Pension Fund
- 10% – Flat rate
Foreign nationals. Income earned by an employee from their work activities on the territory of Bulgaria is deemed Bulgarian source income and is taxable in Bulgaria. The taxable income from employment comprises the employee’s salary and other additional benefits (in cash or in-kind) provided to the individual concerning their assignment. The taxable base is formed after deducting from the taxable income the amount of the social security and health contributions at the employee’s expense.
Rate of taxation on employment income. Employment income is taxed at a flat rate. On payment of the salary, the employer must withhold the due personal income tax and remit it to the National Revenue Agency on behalf of the employee.
Social security contributions. The social security contributions are split between the employer and the employee. The most common aggregate social security rate is distributed between the employer and the employee in a proportion of 60:40. The employee’s social security contributions are withheld from the employee’s remuneration and remitted to the National Revenue Agency.
Payroll Cycle in Bulgaria
Salaries are paid monthly. Payday is agreed upon between the employer and employee.
Ready to get started? Request a quote!
How Acumen’s International PEO and Payroll Service can Benefit Your Business in Bulgaria
Compensating your local and ex-pat workforce in Bulgaria and closely adhering to Bulgarian 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 Bulgarian 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 Bulgaria by officially employing and compensating your best-selected global talent – 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 Bulgarian laws. To get the latest updates on taxation in Bulgaria and in 190 countries worldwide, contact Acumen’s team of global employment experts.