Convergence Employee Leasing, Inc.’s Post

In the Philippines, the 13th Month Pay or Year-End Bonus is a benefit mandated by law. Therefore, you may wish to honour this even if your Virtual Assistants aren't officially 'employees' and you aren't based in the Philippines. The guidelines state that this bonus should be paid before the 24th of December, and it should be equivalent to a 1-month pay pro-rate. We don't have set working hours for our team. Some are ad-hoc, some part-time, and some often work more than 40 hours. So, to work out their bonus, we simply add up the total hours worked over the year and divide the total by the number of months they've worked this year. If they've been with us for more than a year, we simply divide the number by 12. This gives us the average number of hours worked per month over the past year. We then multiply this (i.e. the average number of hours per month) by their hourly rate to work out their bonus. Simples 🙂 Happy Staff = Productive Staff 🤗 Dr Steve Day Founder, Systems and Outsourcing #13thmonthpay #yearendbonus #proemployee #honour #xmasbonus #bonus #happystaff #happyemployee #productivestaff #filipinovas #13thmonth

In the Philippines, the 13th Month Pay or Year-End Bonus is a benefit mandated by law. Therefore, you may wish to honour this even if your Virtual Assistants aren't officially 'employees' and you aren't based in the Philippines. The guidelines state that this bonus should be paid before the 24th of December, and it should be equivalent to a 1-month pay pro-rate. We don't have set working hours for our team. Some are ad-hoc, some part-time, and some often work more than 40 hours. So, to work out their bonus, we simply add up the total hours worked over the year and divide the total by the number of months they've worked this year. If they've been with us for more than a year, we simply divide the number by 12. This gives us the average number of hours worked per month over the past year. We then multiply this (i.e. the average number of hours per month) by their hourly rate to work out their bonus. Simples 🙂 Happy Staff = Productive Staff 🤗 Dr Steve Day Founder, Systems and Outsourcing #13thmonthpay #yearendbonus #proemployee #honour #xmasbonus #bonus #happystaff #happyemployee #productivestaff #filipinovas

The Philippines has specific labor laws, so don’t exploit. These laws dictate minimum wage, working hours, overtime, and benefits like health insurance and holiday pay. If you’re going to outsource to the Philippines then please do it right. $2 virtual assistants don’t exist anymore. There are too many people exploiting the Philippines for ‘cheap labor’. The right way to hire in the Philippines is to have.. 🔥 HR processes (sourcing, interviews, background checks, legal requirements) ❌ Hiring offshore staff isn’t easy, and it requires a lot of work in the human resources phase (hiring). ✅ Agencies in the Philippines help companies with all the requirements to successfully employ teams. Hiring in the Philippines is no different than hiring anywhere else in the world. You must have the right processes and requirements in place to make it work. === I've built 5 call centers in the Philippines. Direct message me and I will share all that I know about how to outsource the right way in the Philippines. Jozsef Kiss

Global Payroll FAQS For Employers: Paying Overseas Freelance/Self-Employed Workers in Germany Pt 2: Deemed Employment Risks of Engaging Contractors For the employer, the financial risk of a contractor being considered an employee is substantial. If the authorities deem that the contractor is seen as an employee, the company could be required to reimburse the complete outstanding social security contributions (i.e. company's and employee's contributions) to the authorities retrospectively. This would be for up to four years if the non-payment was unintended, and for up to 30 years if intention can be shown. In addition, a fine in the amount of four times the amount of social security withheld can be imposed. Of course, any income taxes must also be reimbursed to the tax authorities. Recourse against the "contractor" is very seldom successful. #Globalpayroll #Germanpayroll #Globalpayments

Global Payroll FAQs - Sweden Paying Overseas Freelance/Self-Employed Workers in Sweden: 5 Top Tips for Contracting with Sole Proprietors 1. You will be expected to register with the Swedish tax system if you plan on living in Sweden for more than 6 months. 2. Individual Tax ID numbers (Personnummer) or Coordination number is issued to foreign nationals who have been resident in Sweden for more than 6 months. A Coordination number is an identifier for individuals who are not or have not been registered in the Swedish Population Register. 3. Sole proprietors (Enskild Firma) are required to register with the Swedish Tax Agency for F-Tax and VAT. 4. The tax you pay in Sweden will differ based on where you live. As with most countries, the closer you live to large cities, the more tax you can assume you will pay. 5. It is important to assess the risk of deemed employment as this carries the risk for a non-resident employer to be responsible for deducting 30% WHT. #globalHR #globalexpansion #peopleoperations

Global Payroll FAQs - Sweden Paying Overseas Freelance/Self-Employed Workers in Sweden: 5 Top Tips for Contracting with Sole Proprietors 1.You will be expected to register with the Swedish tax system if you plan on living in Sweden for more than 6 months. 2.Individual Tax ID numbers (Personnummer) or Coordination number is issued to foreign nationals who have been resident in Sweden for more than 6 months. A Coordination number is an identifier for individuals who are not or have not been registered in the Swedish Population Register. 3.Sole proprietors (Enskild Firma) are required to register with the Swedish Tax Agency for F-Tax and VAT. 4.The tax you pay in Sweden will differ based on where you live. As with most countries, the closer you live to large cities, the more tax you can assume you will pay. 5.It is important to assess the risk of deemed employment as this carries the risk for a non-resident employer to be responsible for deducting 30% WHT. #globalHR #globalexpansion #peopleoperations

Temporary workers offer several benefits to businesses during the year-end closing process. Elisa Beckschebe, Manager in our Amsterdam office has helpfully written an informative article outlining why you should hire a temporary worker for Year-End Closing. This article covers: 🔹The Benefits of Temporary Workers in Year-End Closing 🔹The Top 3 Temporary Workers in Year-End Closing 🔹How to find your next accounting and finance contractor Read her article today: https://lnkd.in/eQsPWDNp #recruitmenttrends #temporaryworkers #hiring

Global Payroll FAQS - The Philippines Paying Overseas Freelance/ Self-Employed Workers in The Philippines Part 1 5 Key Facts for Employers 1.The Philippines taxes its resident citizens on their worldwide income. Non-resident citizens and aliens, whether resident in the Philippines or not, are taxed only on income from sources within the Philippines. 2.Work permits are linked to employment in the Philippines which presents a challenge for Freelancers and Digital Nomads obtaining a right to work in the country. 3.Official invoices are required from the freelancer in a format authorised by the Tax Authority (BIR). Freelancers are at risk of being fined if they do not use this format. 4.Casual employees may become permanent employees of the company after one year of working for the company, whether working continuously or not. 5.Non-VAT registered individuals have to pay a percentage tax equivalent to 3% of one's gross sales or receipts. #globalpayroll #globalpayments #phillipines

Global Payroll FAQS Paying Overseas Freelance/ Self-Employed Workers in Poland Pt 1 5 Key Facts for Employers 1.There are two types of Freelance contracts in Poland: a 'Contract of Mandate' where the employer pays social security, disability and health insurance and a 'Commission Contract' where the Freelancer is responsible for paying their own costs and social security contributions. 2.Alternatively, Freelancers can also register their company with the CEIDG register of sole proprietorships that operate in Poland. 3.Non-EU citizens need to apply for a freelance visa before they can work. 4.There is a risk of deemed employment which relates to the direction and control of the worker. 5.Poland's minimum wage also applies to contractors. #globalpayroll #globalpayment #polandpayroll

Global Payroll FAQs - Spain Part 3 Paying Overseas Freelance/Self-Employed Workers in Spain False Self-Employment in Spain. Employers should also consider the risk of ' falso autonomo' or bogus self-employment in Spain, which is illegal and penalised as fraud by the Spanish Social Security authorities. Factors determining 'Falso autonomo' may be: Employer control and supervision: To be considered self-employed workers should not receive orders, guidelines or instructions from anyone. Economic dependence of the worker on the Employer: A self-employed worker needs to invoice more than one company. If invoicing only one company they are considered an Employee of that company. If working over 75% for one company the worker should register as TRADE or dependent self-employed worker. The worker should provide their own tools/equipment to fulfil their role. The professional self-employed person assumes the risks inherent in the provision of their services in their company and profits from the benefits derived from this service. #internationalHR #globalpayroll #peopleoperations