- Overview: Chile
- Global PEO and payroll
- Global HR Compliance
- Work permit for hiring expats via PEO
- Expand without a company set up
- Contractor vs. employee: which is better?
Global PEO and Payroll in Сhile
If you are considering entering a new market, it’s critical to consider the unique challenges faced in each country. Not every expansion is equally tricky, but navigating global markets will always require rigorous due diligence. As with any expansion, consider the laws, activities of your company, goals, and risk tolerance levels before moving forward..
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 Сhile, without having to establish a legal business entity.
Global Expansion and Global Employment Challenges
When expanding your business operations to new countries, there are many important issues to consider to ensure compliance and avoid any potential problems on the global expansion journey.
These can include global HR administration issues such as securing business visas and permits, drafting employment contracts that comply with labor and tax laws across multiple jurisdictions, data privacy and intellectual property rights, global payroll and accounting considerations, and local statutory requirements.
There may also be a need to comply with various regulatory requirements relating to currency controls, foreign employment restrictions, and employee classification. Additionally, multi-jurisdictional tax considerations, risks, and liabilities should be taken into account, along with complex tax filing requirements and potential litigation risks.
Finally, being aware of the different languages, time zones, customs, and cultures you may encounter in these new markets is also essential. Doing the necessary homework on all of these issues in advance can help avoid any potential problems down the road.
What is a Global PEO?
A PEO, or ProfessionalEmployment Organization, is a company that contracts with other businesses to provide human resources services. These include
- payroll and benefits administration,
- tax reporting,
- workers’ compensation insurance,
- unemployment insurance claims management,
- employee screening,
- legal and regulatory compliance assistance,
- HR consulting,
- immigration services,
- other financial services.
Businesses can focus on their core competencies and goals by outsourcing these time-consuming and complex tasks to a Global PEO and Payroll solution.
Why Partnering with Global PEO Is a Win-Win Solution For Businesses
Employers face the dual challenge of finding and retaining talent in a competitive business environment. One way to counter this is to invest in an experienced third party to share the burden of non-core administrative activities, freeing up precious time and resources to focus on the organization’s core competency.
A Professional Employer Organization (PEO) is a specialized staffing firm that provides human capital management services, including administration, payroll, tax compliance, workers’ compensation, employee benefits, and HR consulting services for its clients. These ancillary services allow organizations to constrain their investment in human capital management to a fixed fee per employee per year.
Global PEOs shoulder the burden of many “non-core” HR and administrative activities – from payroll to benefits administration – enabling PEO clients to focus more on their organization’s core competency. Further, PEOs that are more sophisticated provide expertise to help their clients with strategic HR decisions.
9 Benefits of Partnering with a Global PEO
- Global employment management centralization. Maximized control. Minimized risk
- A Global PEO facilitates quick talent deployment and provides access to various employee benefits solutions to attract and retain your global talent
- Eliminating and mitigating certain employment-related risks, including non-compliance and employee misclassification, through the shared responsibility and co-employment arrangement
- Scalable technology and infrastructure provided via the global PEO relationship
- Reduced and stable global employment management-related cost
- A global PEO can facilitate risk-free, quick, and easy market entry acting as your local legal entity, helping you to avoid the cost and time associated with incorporating in 190 countries
- A global PEO allows you to make your global expansion 100% compliant and secure by keeping track and adhering to all local laws and regulations
- A Global PEO and Payroll solution helps you remain agile and scales up or down in your selected foreign markets according to your business needs
- A global PEO facilitates global employment consistency and HR compliance
What Services Can a Global PEO Provide in Сhile?
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 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.
How Much Does a Global PEO Charge?
Global PEOs typically mark up payroll totals by a certain percentage to cover taxes and fees. This figure can vary depending on the size and scope of the business. Some GEOs also include the cost of employee insurance plans in their overall percentage, while others bill for these separately. It can be difficult to determine actual costs since some employer taxes (state and federal unemployment taxes, Social Security) are only paid on annual wages that exceed a certain threshold.
Acumen International – Your Single Point of Truth and Global Employment PEO & Payroll Solutions Provider in Сhile
- 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
- 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 two 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 easily onboard and compensate your employees without risk of legal repercussions
- Acumen Global PEO protects your company’s Intellectual Property rights.
Acumen International is here to help, from payroll and tax management to social security disbursements and immigration services. We’ll give you the peace of mind you need and reduce your company’s legal costs by 50% or more.
|Our 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
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 labour 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%?
- How to hire international teams without setting up a local entity?
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?
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.
International Global Payroll and Taxation in Сhile
Employment related taxes
Chile taxes its individuals resident or domiciled in Chile on worldwide income. Foreigners working in Chile are subject to taxation only on their Chilean-source income during the first three years in Chile, after which worldwide income is taxed.
Non-resident flat tax. Before residence is acquired, a flat tax generally is levied if the activities can be qualified as technical or engineering work or professional services that an individual renders through a report, advice, or plan development. In the case of other activities, or where the paying company is located in a tax haven, other rates would apply.
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Global Employment Services: How a Global PEO can Help You in Business Transition
Companies around the globe are merging and acquiring one another to become more competitive. While this is in the company’s best interest, it can be difficult to predict how a merger or acquisition will affect its employees.
A bad transition can cause many problems, including increased employee complaints and turnover. The effects on employees may also extend beyond their employment with the company. This is why employers need to ensure a smooth transition for their employees by complying with termination procedures and taking other steps to protect themselves from legal action.
Acumen International provides business development services to companies making international transitions. Acumen protects and serves the needs of employers in transition by providing them compliant and secure global employment services.
At Acumen International, we know how to make the most of an uncertain situation. By helping businesses navigate complex international employment laws, we can provide the global employment tools and expertise needed to succeed in every country. We’ll get you to your destination—even if there are a few unexpected stops along the way.
We’ve helped hundreds of companies transition into new ownership with less disruption than expected—all because we’ve prepared them well in advance and given them a solid global employment framework upon which they can build their new hiring and hiring approach. We take care of all employment law compliance across multiple jurisdictions so that our clients have more time and energy to devote to what matters most—keeping their customers satisfied and their business.
Why Should You Choose a Global PEO Service Over Setting Up Legal Entities?
As your business expands globally, it is essential to be agile to make the best decisions for your company. Markets and consumer demand are constantly changing, so it is vital to be as flexible as possible. The more agile you are, the easier it will be to make the right choices for your business.
Outsourcing can be an excellent way for organizations to save money and increase efficiency. By carefully selecting which global employment functions to outsource and working with a trusted partner, businesses can reap the benefits of outsourcing without putting themselves at risk. Outsourced standard functions include payroll, benefits, and absence management, but the decision of which functions to outsource should be made case-by-case. With careful planning and execution, outsourcing can help your organization run more smoothly and save money in the long run.
When expanding your business into new countries, there are many benefits to using a global PEO (Professional Employment Organization) or EOR (Employer of Record). A Global PEO and EOR Partners can handle all the immigration, hiring, payroll, tax, and HR compliance for you, freeing up your time to focus on other aspects of running your business. And if you ever need to leave the country, you can do so without being tied down by any long-term commitments.
The main benefit of using a global PEO versus a new entity for your business setup abroad is a lack of administrative cost and burden. Your global PEO provider will handle the complex logistics of staying compliant and managing your international employees without a legal entity. However, you ultimately have the final say on what gets done. Also, by going this alternative way, you still get the most considerable benefit that setting up a foreign entity could give you – expanding your presence in a new and lucrative market.
Difference between a Global EOR and a PEO. Employment Risk Mitigation Strategy
When expanding your business into new countries, there are many benefits to using a global PEO (Professional Employment Organization) or EOR (Employer of Record). A global PEO or an EOR is an alternative to hiring your employees via an in-country legal entity. Instead of hiring your employees, you contract with a global employment solutions provider to hire and manage them for you.
A Global PEO and EOR Partners can handle all the immigration, hiring, payroll, tax, and HR compliance for you, freeing up your time to focus on other aspects of running your business. And if you ever need to leave the country, you can do so without being tied down by any long-term commitments.
However, both global PEOs and EORs work differently. So, it’s important to understand the differences between the two, so you can find the right one for your needs.
The main difference between a global EOR and a PEO is how they hire the workers. A global PEO assigns employees to the client company for employment so that it can replace the clients in their duties of hiring and managing the employees. The PEO is not a direct employer on paper. An EOR, on the other hand, is an employer of record in the country of business. They hire and terminate employees on behalf of the client company.
|Employment Model||Co-employer||Sole Employer|
|Key Services||Global employment, payroll, benefits, immigration (visa, work permits), mobility||Global employment, payroll, benefits, immigration (visa, work permits), mobility|
|Local Entity Establishment||Required||Optional|
|Liability||Shares responsibilities and liabilities||Assumes all responsibilities and liabilities|
|Global Labour & HR Compliance||Optional||Required|
How Acumen’s International PEO and Payroll Service can Benefit Your Business in Сhile
Compensating your local and expat workforce in Сhile and closely adhering to Сhilean 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 Сhilean 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 Сhile 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 Сhilean laws. To get the latest updates on taxation in Сhile and in 190 countries worldwide, contact Acumen’s team of global employment experts.