Establishing and managing payroll in the Bahamas
If your organization is planning an expansion into the Bahamas, an early step in the process is likely to be hiring a local workforce and setting up a payroll. This process can be very time-consuming, and you will need to ensure compliance with the country’s complex and unique employment regulations.
At New Horizons, our experts offer Bahamas payroll setup and management outsourcing, enabling your organization to start hiring and expand more quickly and efficiently, whether or not you already have an established entity in the country.
If you have an entity
Does your organization have an entity registered in the Bahamas? We can help you to create and run your payroll in the Bahamas. In addition, we can provide HR, contract, and legal compliance support meaning you won’t have to worry about any of the complex administration and can focus on your expansion efforts.
If you don’t have an entity
If you don’t have a registered entity in the Bahamas, you can use our full payroll outsourcing service. Our Bahamian subsidiary will act as employer of record for your employees, and our team will handle the HR, administration, and complex legal compliance work.
Choose this service for a low-risk, flexible, and scalable solution for your Bahamian payroll setup and management, with all the benefits of hiring locally and none of the usual complications.
Expanding your business in the Bahamas with New Horizons
Bahamas payroll guide
Taxation and withholdings in the Bahamas
Employees and employers in the Bahamas must pay a percentage of salaries as social security contributions. Employees pay 3.9% and employers pay 5.9%. Employees must also pay a 9.8% national insurance, which should be withheld by the employer.
The Bahamas does not have an income tax and tax revenue is instead derived from VAT and other forms of taxation.
Entitlements and terminations rules in the Bahamas
In general, employees in the Bahamas are entitled to between two and four weeks of notice prior to termination. The exact length of notice depends on the employee’s length of service with an employer.
How to establish a Bahamas payroll
In general, businesses trying to set up payroll in the Bahamas are required to register a legal entity in the country. This process can be complex and time-consuming, and it is important to follow the regulations closely in order to avoid fines and legal issues.
New Horizons offers comprehensive payroll setup and management services, helping you get up and running in the country as quickly as possible. We can also offer our Bahamas subsidiary to act as employer of record, so you can benefit from our services even if you don’t have an entity in the country.
Your all-in-one solution for payroll outsourcing and Bahamas expansion
New Horizons’ Bahamas PEO, payroll, and employer of record services enable your business to quickly and efficiently start trading in the Bahamas. With our help, your business can commence operations in the Bahamas in just 48 hours, and you could save up to 82% in expansion costs, whether or not you already have a registered entity in the country.
Our team of Bahamas experts can also handle all of your company’s payroll, benefits, expenses, HR duties, and compliance work in the country. And as the only global PEO with an in-house recruitment team, New Horizons can rapidly source, hire, and onboard your local staff, freeing you to focus on your successful expansion into the Bahamas.