Your Belgium payroll is an important part of your new company location. Ensuring that your payroll meets local labor laws will keep you working without the fear of delays or fines, which means your employees will get paid on time. However, setting up your Belgium payroll can turn into a challenge while you’re also juggling hiring, dealing with benefits administration, and running your parent company.
G-P can make a difference in your expansion process through Belgium payroll outsourcing. We’ll act as the Employer of Record so that all compliance falls to us instead of you. Plus, we can use our existing subsidiary to run your payroll, hire talented employees who work for you, and even source the best benefits.
Taxation Rules In Belgium
Belgium has several different tax funds that apply to both employers and employees. For example, employees must contribute 13.07% of their gross income to social security, while employers contribute about 27%. The country’s progressive income tax scale is also high, with employees paying 50% of their salary over 41,360 EUR.
Belgium Payroll Options for Companies
Instead of simply running your own payroll, keep in mind that you have four different Belgium payroll options to choose from:
- Internal: Some subsidiaries with a large staff and a commitment to Belgium may choose to set up an internal payroll. However, not all companies can sustain the staff or expertise necessary.
- Remote: Many subsidiaries may already have a parent company running payroll from another country. You can add your employees to that payroll as long as you follow the different regulations based on country.
- Payroll processing company: Working with a local Belgium payroll processing company is another option for companies looking to outsource. Although this company can set up your payroll, you’ll still be the one held responsible for employment compliance.
- Global PEO: Finally, a global PEO such as G-P can set up your payroll and take care of compliance. Belgium payroll outsourcing through us is the only option that will truly take everything off your plate.
How to Set Up a Payroll in Belgium
You cannot set up your payroll without establishing a subsidiary first. However, the incorporation process can take months of work and requires the knowledge of a lawyer, consultant, or other professional. By the time you can set up your Belgium payroll, you may have lost talented candidates you wanted to hire, and you’ll lose time you could’ve used to better establish your brand in Belgium. G-P eliminates this requirement through Belgium payroll outsourcing. Since we use our existing subsidiary, you won’t have to go through the lengthy subsidiary setup process.
Entitlement/Termination Terms
Entitlement and termination terms are often tricky in foreign countries, so it helps to have these terms in place before setting up your Belgium payroll. In 2014, Belgium changed its measure of notice periods to weeks based on an employee’s years of service. As an employer, you also need to offer all dismissed employees outplacement services.
Payroll Processing Company in Belgium
G-P is ready to help make your expansion fast and easy through Belgium payroll outsourcing. Contact us today for more information.