- Overview: Latvia
- 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 Latvia
When you consider the ever-growing international market, you may find that your business is poised to benefit from overseas expansion. However, with so many countries to choose from and a vast difference in cultural norms and laws, it can be hard to know where to start.
Given that many potential international locations have different regulations, accounting systems, and tax structures, getting the right help is crucial. The first step is finding the right partner for your business. Here are some basic concepts related to expanding internationally that any business should be familiar with before starting down the road of global expansion.
Global Expansion and Global Employment Challenges
Businesses are implementing global employment solutions to support their expansion plans as the world grows increasingly interconnected.
Suppose your company is interested in exploring opportunities outside its home territory. In that case, you may be faced with the need to understand legal requirements and the inevitable challenges of operating in a foreign country. You must learn the legal employment laws of the countries where you plan to hire employees, wherever they may be in the world, not just in the countries you already operate. Your operational activities are subject to various legal obligations, including tax laws and labor regulations, which must be complied with.
While planning, researching, establishing a foreign legal entity, securing all the required work permits, visas and licenses, or drafting employment contracts might seem straightforward, it has some unexpected twists and turns.
Many of these challenges can be addressed by partnering with a global PEO for global HR administration solutions across multiple jurisdictions. Seeking help from global employment professionals — Professional Employment Organisations — who can provide global employment solutions can make your HR operations in Latvia much easier. Global PEOs (Professional Employment Organisations) providers can offer various strategic and operational benefits, including streamlined processes, reduced burden on in-house human resources teams, compliance with local employment laws, and social security programs that save you time and money.
We have put together some essential guidelines and best practices for global employment so you can stay compliant as you hire faster in Latvia.
What is a Global PEO?
A global PEO (Professional Employer Organization) is a company that specializes in handling global employment functions for other businesses. It is an excellent way for companies to shield themselves from the administrative burden of HR, employee misclassification, permanent establishment, or non-compliance risks.
The most common global PEO services include payroll, tax filing, benefits administration, and workers’ compensation coverage. Other crucial functions include compliance monitoring, policy development, employment contracts, onboarding, and offboarding handling. A global PEO and Payroll provides its clients with invaluable flexibility and costs savings, helping make your accounts payable much more accessible while saving you valuable time!
17 Burdens a Global PEO Can Relieve for Your In-House HR Department in Latvia
- 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
- Immigration and relocation support for your ex-pat workforce in Latvia, such as visa sponsorship and securing work permits
- Lack of institutional knowledge.
- IP right protection
- Lack of local and international legal support
- Convert local contractors into full-time employees
- Business transitions: acquisitions, mergers, close-downs
- Need to deal with multiple global employment service providers.
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. In addition, 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. Professional Employment Organisations can also provide valuable services 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.
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 global companies to smooth the way for Latvia’s quick, easy, and risk-free business operations without establishing a legal entity.
Global PEO — One-Stop Destination for Global Businesses in Latvia
It can be hard to trust global employment functions when you’re entering uncharted territory. Still, an Acumen Global PEO (Professional Employment Organization) can help your business get global and stay safe, secure, and compliant in foreign markets. So what is a Global PEO? It’s like a payroll company—but for employees in other countries. It’s like an employee benefits broker—but for employees worldwide. And it’s like a human resources consultant—but for businesses expanding internationally. So what does that mean for you?
Acumen Global PEO allows you to streamline your company’s operations and get a handle on global workforce management. We can provide a full suite of global employment services to help you replace the following numerous vendors.
- Payroll Company
- Employee Benefits Broker
- HR Consultants
- Background Checks Vendors
- IP Attorney
- Tax Advisor
- Translation service
- Legal Advisor
- Immigration Advisor
- HR Compliance Advisor.
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 international expansion’s many challenges and pitfalls. 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
7 Benefits of Working with a Global PEO (Professional Employer Organization) in Latvia
- You can avoid worrying about local labor laws or having to establish a foreign legal entity. This can save you time and money and help you get your business up and running quickly and smoothly.
- Working with a global PEO (Professional Employment Organization) can save time and money when entering new markets. A global PEO is an organization that helps businesses manage the administrative tasks related to local employment, such as payroll, benefits, and compliance.
- PEOs can provide a broad range of employee benefits that companies that don’t use them may not be able to offer. With the help of a global PEO, you can prevent employee turnover and ensure that your employees in Latvia are well taken care of while employed with you. Stable employees will be less likely to change companies or leave their jobs altogether.
- As a business owner, you face many potential threats. Global PEO can help reduce these risks by providing compliance support with labor and tax laws, insurance coverage, record keeping, and immigration issues. Global PEOs can provide their clients with competitive advantages in the marketplace by pooling resources and sharing global employment risks.
- Global PEOs ensure global employment management centralization, maximized control, and minimized risk in Latvia.
- A global PEO helps you remain agile and scales up or down in your selected foreign markets according to your business needs.
- A PEO relationship benefits both the client and the global PEO. For the client, a PEO provides access to affordable HR products and services, expertise in key employment functions such as health care compliance and foreign human resources cost evaluation and planning, employee data collection for critical reports and analyses, and tailored tax reporting capabilities. These technology solutions ensure efficiency in onboarding new employees and facilitate HR administration.
How Much Does a Global PEO Charge?
Payroll taxes and service fees can be an enormous burden for employers. Many companies use a Global PEO (Professional Employer Organization) to help manage these functions in Latvia. global PEOs typically charge a percentage of the total payroll, including employee insurance fees. It can be challenging to determine the actual costs for these services, especially when some employer taxes are only paid on wages up to a certain threshold.
Single Global Service Agreement
A global PEO can cover all your international projects within a single contract and add new employees and services as you expand your global workforce in new countries.
No Required Minimums
We accept projects of any length, with any number of employees.
Flexible and Transparent Pricing
Whether you need to scale up or down, we adjust your pricing based on the project employee number.
End-to-end Global Employment Solution
We manage all your global services, including employment, recruitment, immigration, legal and global HR consulting, saving you valuable time. And Acumen International covers the cost and saves you the effort of finding and selecting local employment-related service providers.
Global PEO and Payroll Services: Save Up to 75-80% of Employment Management Cost and Time in Latvia
|Average Cost & Time||Our Solution *|
|Time to Market||10+ weeks||72 hours|
|Legal Advisors Fees||$ 10 000 +||………….|
|Official Employment & Benefits||$ 20 000 +||………….|
|Incorporation & Liquidation Costs||$ 11 000 +||………….|
|Bank Account Setup||$ 2 000 +||………….|
|Maintenance costs and in-house staff to manage the foreign entity, payroll set up, and administration.||$ 25 000+||………….|
|The approximate total cost of new market entry**||$ 74 000 +||$ 15 000|
* Per one Employee ** Costs vary from country to country
The Remote Work Revolution & How a Global PEO Can Help You Adapt
As workforces continue to evolve, they demand that leaders like you shed the old work models of yesteryear and adapt to the new ones built in front of your eyes. Global PEOs are here to help you navigate this changing employment paradigm, but only if you are willing to have an open mind about where your business is going.
As we move into the latter half of 2022, leadership teams across the globe are still struggling to figure out the best way to manage their internationally distributed workforce. Global PEOs are uniquely positioned to help companies like yours deal with these significant changes, including the shift to remote work. Just a few years ago, the idea of an entirely remote workforce was unheard of, but today it seems like a permanent reality for many.
How a Global PEO can Help You in Business Transition in Latvia
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, including Latvia! 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 in Latvia. This gives employers peace of mind that all of their global obligations are fulfilled while allowing them to focus on their transition plans.
How to Choose a Global PEO (Professional Employer Organization) in Latvia?
As you consider partnering with a global PEO, remember that the needs of each business are unique. Just as you would carefully select international employees, you need to find a PEO that can address your industry’s specific challenges. Look for a global PEO with a strong track record and fiscal stability that can provide comprehensive support and labor and compliance expertise in Latvia. Make sure they offer services and coverage in all your business areas. Get references from other clients in your industry to ensure you make the best choice for your business.
Several key employment workstreams should be considered when partnering with a global PEO.
- Tax, employment, and labor law expertise and compliance across multiple jurisdictions
- Taxation and social security
- Immigration policy framework and documentation
- Global payroll, compensation, and benefits administration
- Communications and global employment management
- Opportunities to outsource the HR function
- Leverage of technology
- Global employment process maps, guides, and other supporting documentation
- Employment contracts and onboarding documents.
Acumen International — the Best Choice of a Professional Employer Organization in Latvia
- 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, including Latvia
- 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 efficiently onboard and compensate your employees without risk of legal repercussions
- Acumen Global PEO protects your company’s Intellectual Property rights
International Global Payroll and Taxation in Latvia
Employment Taxes in Latvia
Personal income tax (PIT). Latvian residents are liable to Latvian income tax on their worldwide income. Non-residents are liable to income tax on their Latvian-source income.
Payroll Cycle in Latvia
The Labor Law provides that the wage should be paid at least twice a month unless the parties have agreed that the wage is paid once a month. If the time of payment has not been contracted or the wage is to be calculated for a specified period. In that case, the wage according to the work done is paid upon completion of the work or expiry of the relevant period, but not less frequently than once a month.
If the remuneration disbursement date occurs on a weekly rest day or a public holiday, the remuneration shall be disbursed before the relevant date.
Global Employment Cost Assessment
In today’s business world, it’s more important than ever to be mindful of costs when expanding your company internationally. Hiring talent in different countries can be expensive, so you must know each country’s compliance, tax, labor, and immigration requirements. One way to save money when hiring employees or independent contractors is to choose the most cost-effective and business-friendly country. This can help you reduce expenses by up to 50%.
Different countries have different labor laws and benefits, so it’s essential to do your research before making a decision. So why not take advantage of our Global Payroll Calculator — the advanced country-by-country employment cost comparison tool? With just a few clicks, you can compare the payroll costs, benefits, employer and employee taxes, and mandatory benefits for 190 countries.
The Global Payroll Calculator can make it much easier to find cost-effective locations for your next global expansion move. The tool considers local taxes, payroll regulations, benefits, compliance requirements, and other labor-related factors that can impact an employer’s budget. By tracking developments in 190 countries worldwide, the research team behind the calculator strives to keep the data up-to-date so businesses can make informed decisions about expanding their operations internationally.
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Disclaimer: Any of the above information is subject to changes imposed by Latvian laws. To get the latest updates on taxation in Latvia and in 190 countries worldwide, contact Acumen’s team of global employment experts.