- Overview: Liechtenstein
- Global PEO and Payroll
- Global HR Compliance
- Expand without a company set up
- Contractor vs. employee: which is better?
Global PEO and Payroll in Liechtenstein
If you’re considering expanding your business into Liechtenstein, it’s essential to understand that every global expansion is different. Various factors can impact your compliance obligations, risks, and budget, including home- and host-country laws, the nature of your activities, and your goals and risk tolerances. By learning about these factors, you can set your business up for success in its new venture in Liechtenstein.
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
- local statutory requirements,
- drafting employment contracts that comply with labor and tax laws,
- securing business visas and permits,
- global payroll and accounting considerations,
- data privacy and intellectual property rights.
Additionally, multi-jurisdictional tax considerations, risks, and liabilities should be taken into account, along with complex tax filing requirements and potential litigation risks.
Global Payroll Management & Compliance Considerations
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.
What is a Global PEO (Professional Employer Organization)?
One of the best business decisions you can make is to partner with a global PEO (Professional Employer Organization). The employer employs a global PEO and enters into a joint-employment relationship with the client by leasing employees to the client across multiple jurisdictions, thereby allowing the global PEO to assume, share, and manage many global employment-related responsibilities and liabilities.
Some services provided by PEOs include
- Payroll processing
- Benefits administration
- Tax reporting
- Workers’ compensation insurance
- Labor and tax compliance
Outsourcing some global employment and HR functions to a PEO means the business owner is not bogged down with processing payroll, benefits, or securing visas and work permits. Instead, they have more time to concentrate on other company matters, including big-picture issues.
A Global PEO Can Help You Replace Numerous Vendors
Managing the employment side of your business can be a full-time job in and of itself. There are many options to consider when it comes to finding help, from payroll companies, tax, and immigration advisors to employee benefits brokers to human resource consultants.
One alternative to working with numerous vendors is partnering with a Professional Employer Organization (PEO). International PEOs can manage all aspects of your business’s human resources, from benefits and payroll to unemployment management and safety training. This can free up your time so that you can focus on running your business.
How to Choose a Global PEO in Liechtenstein?
When looking for a professional employer organization (PEO), it can be challenging to know which one will be the best fit for your business. What questions should you ask? What are some red flags? And what do you look for in an international PEO?
The short answer is: carefully. You need to find a global PEO company that can address your industry’s challenges. The needs of each business are unique, and the same goes for international PEOs. A good global PEO has a strong track record and fiscal stability that can provide comprehensive support and compliance expertise. 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.
Acumen International – Your Single Global Employment Solutions Provider in Liechtenstein
- 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.
- Payments are made within the UK or to the UK bank company account
- You can delegate to Acumen Global PEO all HR responsibilities Payroll & benefits administration, background checks, and HR helpdesk
- 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
- 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.
Global Payroll Calculator: Accurate Global Employment Cost Estimation
Acumen International builds the Global Payroll Calculator to help businesses understand the compliance requirements for conducting business in a new country. Acumen’s research team continuously 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.
What is the value of a new employee to your company? Most companies invest a lot of time and money when hiring new employees. But is it enough? Global Payroll Calculator will help you make fast, informed, and compliant decisions regarding global hiring. Avoid hidden costs with GPC – Instant calculation of country-specific payroll, mandatory benefits, and employer and employee taxes in 190 countries. Get answers to critical questions before you hire!
These are just some of the questions that might be on your mind: Who can we afford? What will it cost me after taxes? What will I get back from the government? How much should I pay my employees?
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 Liechtenstein
Personal Income Tax (PIT)
The personal income tax (PIT) is paid by resident individuals on their worldwide income, by nonresident individuals – only on their income sourced in Liechtenstein.
A tax resident is an individual who:
- has a domicile in Liechtenstein (i.e., a residence available for use to stay there permanently), or
- has a habitual abode in Liechtenstein (i.e., present in Liechtenstein for at least six consecutive months).
Employer Taxes and Contributions
- Social security contributions
- Unemployment insurance
- The rate for the employer’s unemployment insurance contribution is 0.5%.
- Occupational accident insurance
- Family compensation fund
- Occupational pension scheme
Corporate Income Tax (CIT)
The corporate income tax (CIT) is paid by resident companies on their worldwide income (with certain exemptions), by nonresident companies – only on their income sourced in Liechtenstein.Сorporations, foundations, and establishments are subject to a profit tax at a flat rate.
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.
Disclaimer: Any of the above information is subject to changes imposed by Liechtenstein’s laws. To get the latest updates on taxation in Liechtenstein and 190 countries worldwide, contact Acumen’s team of global employment experts.