Sierra Leone is a small West African country that borders the Atlantic Ocean. Sierra Leone is an attractive place for companies looking to expand to a location with ties to other countries in Africa.
Even though an expansion to Sierra Leone is exciting, it can prove difficult for your company. You’ll need to consider how to set up a Sierra Leone payroll, decide which payroll option is best for your goals, and follow country-specific regulations to stay compliant.
Taxation rules in Sierra Leone
Taxation rules for companies vary by industry and resident or non-resident status. For example, the basic rate is 30% for non-resident companies and anywhere from 0-30% for resident companies. Employers are responsible for withholding tax at the source of income. These rates also vary based on whether the employee is a resident or non-resident.
Sierra Leone payroll options for companies
Companies have 3 main Sierra Leone payroll options:
- Internal: If you plan to operate in Sierra Leone long term, you may want to operate your own payroll out of your subsidiary. Doing so is a good option for larger companies with the budget to hire a full HR team
- Sierra Leone payroll processing company: If you would rather outsource your payroll, you can work with a Sierra Leone payroll processing company. Remember, however, that your company will still be responsible for payroll compliance.
- G-P: The easiest way to run payroll in Sierra Leone and stay compliant is partnering with an Employer of Record (EOR) like G-P. With us, you can rest assured that all employees will be paid on time, freeing you to focus on other important aspects of your business.
How to set up a payroll in Sierra Leone
When you expand to a new country such as Sierra Leone, you’ll usually have to establish a subsidiary in the country before you can set up payroll and start working. G-P eliminates this requirement through our Employer of Record (EOR) model. We can help you start working in a few days without having to go through the lengthy subsidiary setup process.
Entitlement/termination terms
Figuring out entitlement and termination terms in other countries can turn into a challenge. We recommend outlining these terms in an employment contract before setting up your Sierra Leone payroll in order to maintain compliance. Sierra Leone allows probation periods of up to 6 months. Subsequently, employees can get dismissed for just cause, and after 2 written warnings, workers may be terminated without compensation.
Streamline global payroll management with G-P.
G-P streamlines each step of the payroll management process with our market-leading Global Growth Platform™. Pay your team with confidence anywhere in the world in 150 currencies with our 99% on-time automated payroll system — all with just a few clicks. Our products also integrate with leading HCM solutions, syncing employee payroll data across platforms automatically to create one reliable, convenient source of truth for HR teams.
Contact us to learn more about how we can support you