Global PEO and Payroll in the United Arab Emirates (UAE)

The United Arab Emirates is among the world’s most prosperous, glamorous, and exciting places to conduct business. The UAE is ideal for international companies to establish business ties in the Middle East and North African (MENA) region. But the UAE has multiple laws and regulations that are unique from mainstream Western countries. If you want to expand your business there, you can expect to encounter certain obstacles to engaging and payrolling your remote workforce in the UAE.

Global Expansion: 9 Steps to Help You Navigate the Journey

You may have dreamed of expanding your business to a different country and thought it would be hard. You're not wrong—there are many factors to consider and many things that must be done to achieve success. But there's no reason to despair; if you take a systematic approach and keep a clear head, you'll soon see the path forward.

The first thing you should understand about international expansion is that it requires a lot of planning. You need to identify what makes your company successful and which aspects can help your company grow internationally. This will also help you define the growth you want from the expansion and how much risk you will take to achieve it.

Once you've determined your goals, the next step is research. Several factors can make or break an international expansion: not only will you want to know about the market itself (population size, purchasing power, economic stability), but also about the laws and regulations that could affect your business operations, as well as tax rates and customs issues. Once you have a firm grasp of all these variables, it's time.

1. Determine your global expansion strategy.
2. Build a global expansion team.
3. Choose the most business-friendly and cost-effective countries. The UAE is one of them.
4. Determine the most effective mode of entry, keeping the ease of exit in mind
5. Determine the suitable talent engagement model.
6. Develop a robust global talent acquisition strategy. Find an experienced and reliable partner.
7. Compliantly hire local and foreign talent in multiple jurisdictions, including the United Arab Emirates.
8. Create Global HR Compliance and Employment Risk Management Strategies.
9. Maintain reliable talent management systems. Adhere to local labor laws and HR compliance regulations.
10. Develop a Global Talent Retention Program.

What Is a Global PEO?

A global PEO, or Professional Employer Organization, is a company that specializes in handling human resources for other businesses. PEOs can provide a wide range of services, 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, and other financial services.

Businesses that partner with a PEO can outsource many of their HR needs and focus on running their core operations. 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.

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

1. Global payroll administration
2. Employee benefits administration
3. Drafting compliant employment contracts to adhere to local labor and tax regulations in 190 countries
4. 100 %compliant onboarding 
5. Background checks
6. Workforce compensation administration
7. Compliance assistance
8. Guidance on best practices of voluntary benefits provisioning
9. Immigration and relocation support for your ex-pat workforce, such as visa sponsorship and securing work permits
10. Enhanced institutional knowledge.
11. IP right protection
12. Legal support.

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How to Choose a Global PEO in the United Arab Emirates (UAE)?

When considering hiring a global Professional Employer Organization (PEO), carefully research the company. A global 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 various benefits and services.

To choose the best global 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 global 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 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.

What Services Does a Global PEO (Professional Employment Organization) Provide in the United Arab Emirates (UAE)?

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. Immigration support, sponsorship of 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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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.

	Co-Employment	Client
Employment risks mitigation	50%	50%
Tax compliance & payroll processing
Involvement	35%	65%
Incorporation costs
Coverage	client's home country only	client's home country only

	International Payroll	Client
Employment risks mitigation
Tax compliance & payroll processing
Incorporation costs		own foreign entity required
Effort	20%	80%
Coverage	multinational	multinational

	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 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, taxes, and hidden employment 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.

Global Payroll and Taxation in the United Arab Emirates (UAE)

The UAE offers favorable tax policies and incentives to international businesses, making the Emirates attractive to a vast array of global enterprises. There are no individual and national corporate income taxes (CITs). Corporate taxes are determined and levied by the individual emirates, but currently, CITs are reserved for foreign oil and gas companies and branches of foreign international banks.

Social Security and Retirement Contributions in the United Arab Emirates (UAE)

Companies operating in the UAE must contribute a percentage of each employee’s gross annual pay to a state-sponsored Social Security fund. The employer contribution rate is 12.5% in all emirates except the Emirate of Abu Dhabi, which is 15%. Contributions apply to employees earning from 1000 to 50,000 AED.

In addition, employers must make monthly contributions to the DIFC Employee Workplace Savings Scheme (DEWS), a retirement savings program that replaces the former end-of-service gratuity. Contributions range from 5.83% to 8.33% of the employee’s base salary, depending on the employee’s length of service.

Professional Employer Organization in the United Arab Emirates (UAE)

As a Professional Employer Organization in the UAE, Acumen International can guide you in determining your total employment cost, deciding which incentives to offer, and settling on what benefits to provide, to attract and retain the UAE’s top talent and remain compliant.

Acumen International’s PEO payroll services in the UAE are designed to help both onshore and offshore companies to navigate tax and payroll requirements. We support businesses in the IT and Telecommunications, FMCG, Oil and Gas industries, Construction and Engineering, Agriculture, Automotive, Healthcare, Pharmaceuticals, and others by hiring and payrolling selected employees on your behalf.

Acumen’s International PEO payroll service in the UAE is designed to protect our global clients from tax non-compliance risks and to relieve you of the responsibility of calculating and paying taxes directly in the UAE. Our Global PEO services save you money while freeing you to focus on growing your business.

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How PEO and Payroll Solutions Can Benefit Your Business in the UAE

Despite the UAE’s business-friendly environment, companies expanding to the region can benefit from our international PEO in the country for officially employing and payrolling their global workforces in the UAE. As your global Professional Employer Organization in the UAE, we can engage and pay your remote workforce in the UAE on your behalf. Acumen International is a leading provider of global EOR and PEO services, offering secure and efficient solutions for businesses that need to manage international payroll, HR & benefits administration across 190 countries. Our full-service management solutions are tailored to each client’s needs and can include everything from legal talent employment to benefits management and compliance to payroll and taxation.

1. Processing Immigration requirements
2. Visa applications & extensions
3. Work permit sponsorships
4. Streamline onboarding, benefits, payroll, PTO
5. Local labor law compliance
6. Audit-proof compliance requirements
7. Employee benefits management
8. Handling employment contracts, terminations, and compensation
9. Processing medical insurances and benefits
10. Payroll, including year-end tax statements
11. Relocation services & housing
12. Benefit management
13. Special needs or requirements
14. Multi-country employment without limitations
15. Handling contract worker and ex-pat workforce management
16. Compliant employment or termination within 72 hours.

NOTE: Acumen is not an International Payroll provider. We do not provide International Global Payroll services as a standalone solution in the United Arab Emirates and other countries we cover.

Whether you operate offshore, do business in a free zone, or set up operations on the UAE mainland, Acumen’s PEO payroll services make it fast and easy to launch your business activities in the UAE. We send you one simple monthly invoice that covers everything, sparing you from having to keep on top of your HR management needs. With Acumen’s Global PEO and International Global Payroll services in the UAE, you can focus on expanding your business while we focus on taking care of your workforce. Contact our global employment experts today to learn more about how Acumen International can help you expand your business in the UAE and in 190 countries around the globe.

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