Employ Candidates Compliantly in Mexico

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  1. Overview: Mexico
  2. Global HR Compliance
  3. Global PEO and payroll
  4. Work permit for hiring expats via PEO
  5. Expand without a company set up
  6. Contractor vs. employee: which is better?
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Global PEO and Payroll in Mexico

Getting your business up-and-running in Mexico can be challenging, especially if you do not speak the native language. Establishing your own business entity in Mexico is an option to be considered as you expand abroad. But before you invest valuable resources in setting up business in Mexico, you should be fully aware of the risks involved.

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 Mexico, without having to establish a legal business entity.

Acumen International – Your Professional Employer Organization in Mexico

Navigating the Mexican legal system and adhering to regulations governing employment and taxation can be challenging for businesses, especially if you are not a native Mexican 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 Mexico without concern for legal and compliance risks.

Whether you represent international client companies or you are taking your own business operations abroad, Acumen International’s Global PEO and payroll service allows you to hire and payroll local and expat employees in Mexico. With Acumen in your corner, you can quickly and easily onboard and compensate your employees without risk of legal repercussions.

International Global Payroll and Taxation in Mexico

Employment related taxes

Personal income tax (PIT). The authority in charge of all matters in Mexico regarding taxation is the Service Tax Administration commonly referred as SAT (Servicio de Administracion Tributaria).

SAT operates an online service but first, you will have to register and get your taxpayer number called RFC: this is very important as you will be asked to include it in your invoices (which must be electronic) as well as to present your tax return.

Foreign workers in Mexico are offered the same protections and legally-mandated benefits as resident workers. Mexican employers are required to have a workforce in which at least 90 percent of the workers are Mexican citizens.

Resident. Non-resident. Resident individuals are subject to Mexican income tax on their worldwide income, regardless of their nationality. Non-residents, including Mexican citizens who can prove residence for tax purposes in a foreign country, are taxed only on their Mexican-source income.

Non-tax resident employees. Non-residents are subject to Mexican tax on gains arising from sales of real property located in Mexico (including shares of foreign companies holding a significant amount of Mexican real property) as well as the sale of shares of Mexican companies outside the Mexican stock exchange.

Payroll Cycle in Mexico

The FLL establishes that the salaries of white-collar employees must be paid fortnightly, and the salary of blue-collar employees must be paid on a weekly basis and paid in currency of legal tender.

Non-payroll taxes in Mexico

The VAT is a sales tax that applies to the purchase of most goods and services and must be collected and submitted by the merchant to the Mexico governmental revenue department. Mexico has one of the lowest VAT tax rates in the world.

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

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

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