- Overview: Albania
- Global HR Compliance
- Global PEO and Payroll
- Work Permit for Hiring Expats via PEO
- Contractor vs. Employee: Which Is Better?
- Expand without a Company Set Up in Albania
Global PEO and Payroll in Albania
Albania has excellent allure for international businesses expanding in the European Union due to its rich cultural heritage and splendorous architectural achievements.
Getting your business up and running in Albania can be challenging, especially if you do not speak the native language. Establishing your business entity in Albania is an option to be considered as you expand abroad. But before you invest valuable resources in establishing a business in Albania, 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 Albania without establishing a legal business entity.
What Is a Global PEO?
PEOs offer various HR services that can assist an organization in managing its payroll, insurance, and safety policies. These services include administering health insurance benefits, establishing employee handbooks and HR policies, and managing risk and compliance.
A global PEO provides HR and payroll services to businesses of all sizes. It becomes the Employer of Record for tax purposes and provides employee benefits packages under its tax identification numbers. This allows businesses to save time and money on their HR and payroll functions.
What Is Co-employment Model?
When an organization partners with a Professional Employer of Record (PEO), it engages in a co-employment relationship with the PEO that assumes legal responsibility for the entire employment journey of its international employees, including streamlined and compliant onboarding and ongoing management and offboarding procedures. The global PEO client retains control of its day-to-day business operations, just as it did before entering the co-employment relationship.
Utilizing a PEO allows certain global employment-related risks to be managed and liabilities mitigated for the global PEO client. This includes stabilizing employment-related expenses and mitigating liabilities such as taxes, social security, and worker’s compensation.
What Services Can a PEO Provide in Albania?
1. Expert guidance on how to enter foreign markets quickly and compliantly
As a business owner], it is important to stay ahead of the competition and expand into new markets as quickly and efficiently as possible. This can be challenging, however, due to the time-consuming and costly process of establishing an international subsidiary.
One of the most challenging things about expanding a business is finding the right international expansion partner and successfully determining the proper market entry mode, talent engagement mechanism, and streamlining your operations overseas. However, the initial local entity establishment can be very laborious and costly. Acumen International removes all those obstacles with its tailored Express Global Employment solution that helps businesses optimize global employment operations and attain faster growth. This unique solution can save you a tremendous amount of time and up to 70% on expansion costs. Our all-in-one solution includes a comprehensive global workforce and compliance assessment SaaS tools, global PEO services, and HR operations support, making it easy for you to extend your business into new markets without hassle.
2. Global HR Compliance: International Employment Done Right in Albania
Global employment and international workforce management should be aligned with regulatory requirements, tax, labor, and employment law to minimize legal risks. Misalignment of hiring practices can lead to costly penalties, litigation, and reputational damage. Achieving current compliance standards is imperative in today’s volatile employment environment. However, responding to these changes and protecting your organization from costly penalties and reputational damage can be burdensome and overwhelming.
Do you feel burdened by the labyrinth of laws and regulations? Do you feel your company doesn’t have a comprehensive compliance strategy? Do you constantly fear tax and labour law changes?
Imagine, there is a way to eliminate this risk to your organization without increasing costs, without risking a lawsuit. Acumen Global helps organizations with their HR management, such as benefits administration, payroll support, and employment law compliance, and suggests cost-effective solutions.
Acumen Global PEO can help you with that. We offer our clients a ‘one-stop shop’ approach to their global employment needs, from express global cost and compliance burden assessment to legal and compliant talent engagement solutions, immigration, and HR support services to full-fledged payroll and benefits administration.
Acumen Global PEO service portfolio streamlines benefits and administration deliverables across multiple jurisdictions while automating compliance mechanisms to reduce risk, lead time, and costs.
3. Global Payroll Administration and Tax Filing in Albania
With multiple companies operating across borders, everyone needs to take care of payroll and keep their employees happy and productive. Managing payroll, benefits, compensations, taxes, and benefits can be a major challenge for a business to grow worldwide.
When you hire international teams not based in your core country of operation, every day is a journey into unknown quantities, unexpected expenses, and paperwork nightmares. However, when you hire through Acumen’s PEO services, workers are paid directly, and the employer has control of their global workforce.
Acumen Global PEO is a world-class global PEO and Payroll service provider that streamlines your payroll process while cutting down on the cost of administration in Albania. Acumen will:
● manage global payrolls
● calculate and file employee taxes
● provide an in-country legal entity
● support your team with in-country administrative HR tasks
● pay out as single or group payments – seamlessly and promptly.
3. Benefits Administration in Albania
If you are like most busy C-level executives, all you want to accomplish is running your business. You have little time or energy for the intricacies of navigating the complexity of international payroll, local taxes, compensations, and benefits management.
Imagine if managing these complex services at all locations around the world was as effortless as using a native tongue. Walking into an Acumen Global office would be like walking into any local office in your city.
If you also have trouble finding a right fit International PEO partner or if you are confused about which benefits management companies would be ideal for your case, feel free to connect you with our advisors, so they can analyze your company’s needs and provide you guidance on how to go about finding the right fit.
4. Human Resource Support in Albania
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.
5 Global HR Compliance Issues C-level Executives Must Know
A global PEO can help you identify and mitigate the employment-related risks associated with expanding your company’s operations into new markets, including the strategic, operational, tax, financial, and compliance risks that exist when expanding your business internationally. By conducting a comprehensive risk assessment, we can provide recommendations to ensure your business continues to thrive abroad.
Global employment risk can be a significant factor in business expansion strategy, but organizations should identify not only their key risk drivers but also develop prevention and mitigation plans to reduce the chances of any negative outcomes.
- Continuous tax changes
- Worker misclassification risk
- Hour and wage compliance issues
- Compliance with local immigration laws
- Keeping track of and adhering to local benefits and compensations regulations.
6 Reasons To Lighten the Load With a Global PEO and Payroll Service Provider in Albania
1. Time Savings
The time you save by outsourcing international payroll to a professional employer organization (PEO) can be put toward other areas as you seek to grow your business. With the help of a PEO, you can avoid tax and non-compliance risks while reducing the time and effort required to calculate overtime, paid time off, and employer taxes. Working with a global PEO can also ensure that your international payroll is done correctly and on schedule, minimizing any potential errors or problems.
2. Shared Tax Liability
A global PEO and payroll service provider protects you from costly tax liabilities across multiple foreign jurisdictions. A trusted global PEO can provide timely deduction and withholding notices, ensuring that employment taxes are paid on time and in full. With the help of a reputable PEO, you can rest assured that the IRS will not come knocking at your door unexpectedly.
3. High International Employee Retention
Issuing late payments can demoralize international employees, robbing them of the trust and respect they need to work effectively. By ensuring your payment processes run smoothly, a global PEO partner helps keep your employees happy and productive – and save yourself money and effort in the process.
4. Centralized Payroll Management. Easy Billing
PEO and payroll services are often underestimated and undervalued by global business owners. Payroll is a vital part of operating any business, offering a way to account for employees’ time on the job accurately. With fully compliant payroll-related processes such as correct tax and social security deductions and transmittal of payments, PEOs offer an entirely integrated experience that can result in quicker onboarding and offboarding times and less friction during payment processing.
5. Optimised International Workforce Management
Since a PEO is handling your payroll and HR, they can serve as an indispensable ally for optimizing your international workforce management strategy. With the ability to accurately account for employees’ payroll, benefits, compensation, and taxes, a global PEO can help you streamline onboarding and offboarding processes, saving both time and money.
Additionally, PEOs are experts in payroll administration and social contributions coverage, so they can help you save money on your workers’ comp premiums each payroll cycle. You don’t need to pay upfront or undergo an audit at the end of the year – PEOs take care of it all! This makes managing your workforce a smoother process overall – faster, easier and more cost-effective than ever before.
6. Transparent Employee Payment Structure
PEO and payroll services are essential for any business with international employees. However, it’s not simply a case of ensuring taxes and benefits are properly managed – the focus must also be on providing global employees with clear information to reflect their wages accurately and make deductions necessary for them to receive a fair paycheque.
What’s the Difference between a PEO and an EOR in Albania?
Shared vs Sole Liability
An employer of record (EOR) is the legal employer of employees. They are responsible for all the liabilities and obligations associated with working for them, whereas a PEO operates through a co-employment model. This means that while a PEO shares ownership and liabilities, the EOR assumes all liabilities for the workers.
Shared vs Sole Control over Employment
The other big difference between PEOs and EORs is in the way that they function with regard to hiring workers. With a PEO, you retain many rights and responsibilities over who you hire. An EOR, on the other hand, takes full responsibility for hiring workers – a role often provided by staffing agencies.
Global PEO and EOR Comparison
|Employment Model||Co-employer||Sole Employer|
|Permanent Establishment Factor||Can only work with clients who have a registered in-country (state) entity||Facilitates foreign expansion without setting up an entity|
|Key Services||Global employment, payroll, benefits, immigration (visa, work permits), mobility||Global employment, payroll, benefits, immigration (visa, work permits), mobility|
|Responsibilities||Responsible for the entire array of HR functions||Responsible for a portion of HR functions|
|Tax Administration||Depending on local tax regulations may require taxes to be filed under the client’s taxpayer ID||Files taxes under own Taxpayer ID Number|
|Payroll Funding||Requires advanced payments from the client||Provides payroll funding|
|Local Entity Establishment||Required||Optional|
|Local Entity Ownership||Does not own the entities. Instead, partners with a local or global third-party provider. A PEO does not allow you to hire in countries where you do not have a local entity.||100 % owns legal entities in the country of service. Allows to hire a workforce in other countries without setting up a business entity|
|Liability||Shares responsibilities and liabilities||Assumes all responsibilities and liabilities. EOR hires the employees in the new country under its local business entity and takes on all of the legal risks.|
|Legal Advice||Optional||100% compliance required|
|Global Labour & HR Compliance||Optional||100% compliance required|
|Insurance||May require the client to provide their own insurance.||Provide general liability (GL) and workers’ compensation (WC) insurance coverage.|
|Benefits||Provides higher quality employee benefits at competitive prices||Provides higher quality employee benefits at competitive prices|
|Employment Agreement||The client must draft and sign the employment agreement with an employee.||Drafts and signs the employment agreement directly.|
|Pricing Structure||– Fixed monthly fee per employee|
– Percentage of payroll plus applicable taxes
|– Fixed monthly fee per employee|
– Percentage of payroll plus applicable taxes
Overview of Employment Taxation in Albania
Albanian law applies the principle of worldwide taxation. Resident entities are taxed on all sources of income in and outside the territory of Albania, while non-resident entities are taxed on income generated only in the territory of Albania.
Consequently, these taxes may vary from ALL 20,000 to ALL 550,000.
Non-payroll taxes in Albania
The following incomes are exempt when determining taxable income for PIT purposes:
- Benefits in kind are earned by employment relationships (which are taxed via payroll).
- Lump-sum allowances for business travel, according to the amounts determined by the fiscal legislation.
- Income received from social and health insurance schemes.
- Student scholarships.
- Remunerations are received in case of diseases or misfortunes.
- The compensation received as a result of expropriation.
- Income is exempted according to international agreements.
- The compensation received from ex-proprietors or political prisoners.
- Payment of contributions made by any member of a voluntary pension fund, as well as payments of contributions made by the employer or any other contributor up to the limits provided by the Law ‘On Voluntary Pension Funds’.
- Income resulting from the return on investment, including capital gains from investments to the pension fund.
- Income from pensions and other similar remuneration of foreign citizens of Albanian origin or those of the European Union.
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Acumen International – Your Professional Employer Organization in Albania
Navigating the Albanian legal system and adhering to regulations governing employment and taxation can be challenging for businesses, especially if you are not a native Albanian 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 Albania 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 Albania. With Acumen in your corner, you can quickly and easily onboard and compensate your employees without risk of legal repercussions.
How Acumen’s International PEO and Payroll Service can Benefit Your Business in Albania
Compensating your local and ex-pat workforce in Albania and closely adhering to Albanian 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 Albanian 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 Albania 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 Albanian laws. To get the latest updates on taxation in Albania and in 190 countries worldwide, contact Acumen’s team of global employment experts.