Establishing and managing a payroll in Brazil
As the largest country in South America and possessing a diverse economy with high potential for growth, Brazil is an excellent place for businesses to expand.
However, the process of hiring and setting up your Brazil payroll outsourcing system can be difficult for foreign companies, with administrative hurdles, a different language, and regular unexpected delays often slowing progress.
At Horizons, we help businesses of all kinds to expand their operations into the country with our Brazil payroll outsourcing services. We can take care of your organization’s payroll setup and management, giving you the flexibility to work on your expansion into Brazil even if you don’t have an established entity in Brazil.
If you have an entity
For any organization that already has an established entity in Brazil, Horizons can set up your Brazil payroll outsourcing and manage the associated HR, administration, and compliance work for you.
This service is a great choice for larger businesses interested in committing long-term to their Brazilian expansion.
If you don’t have an entity
For organizations that have not established an entity in Brazil, we provide full support to help set up, manage a payroll, and hire your local workforce. Through our Brazilian subsidiary, you can hire and pay your staff, giving you greater flexibility and a low-risk route of entry into the Brazilian market.
Expanding your business in Brazil with Horizons
Reliable Delivery
We guarantee that all payments will be on time, your data will be secure, and you can be up and running within just 48 hours.
Established Presence
Our in-country subsidiary will act as employer of record, offering you a presence in Brazil for legal local employment.
Flexible Solutions
Our team will manage all of the admin, payroll, HR, and taxes, so you can focus on building your business in Brazil.
Up-To-Date Compliance
We’ll ensure you stay fully compliant at all times with the laws laid out in Brazil’s business and employment regulations.
Single Point of Contact
Our centralized service gives you a single point of contact, simplifying the entire Brazil employment process.
Proven Brazil Expertise
Our in-house teams of payroll and HR experts have already helped all kinds of organizations expand globally.
Brazil payroll guide
Taxation and withholdings in Brazil
Brazil has a relatively high tax rate. Employers generally need to make contributions of about 80% of each employee’s salary towards social benefits funds.
The corporate tax rate is 15% of taxable profits, and there is an additional 10% surcharge above a certain level of income. Beyond this, there are mandatory pension contributions for each employee.
For employees, the income tax rate varies from 0% to 27.5% depending on income level.
|
Social Security (INSS)
|
28%
|
|
FTGS
|
8%
|
|
Third Party Companies
|
5.8%
|
|
Payroll Taxes, Pension, Work Accident, and Severance
|
45.59%
|
| Total Employer Cost |
Up to 87.39% |
|
Social Security (Contributions for Private Sector Until February 29, 2020)
|
8% – 11%
|
|
Contributions for Private Sector beginning March 2020
|
7.5% – 14%
|
|
Total Employee Cost
|
14% |
|
Up to 1,903.98 BRL
|
0.00%
|
|
1,903.98- 2,826.65 BRL
|
7.50%
|
|
2,826.65 – 3,751.05 BRL
|
15.00%
|
|
3,751.06 – 4,664.68 BRL
|
22.50%
|
|
4,664.68 BRL and above
|
27.50%
|
Entitlements and terminations rules in Brazil
Brazil has complex and extensive employee protections compared to many countries, so it is important for employers to fully understand the relevant rules and follow them closely.
We strongly recommend that you write up a formal contract for every employee, detailing everything from compensation to benefits, entitlements, and termination terms.
These contracts should always be in Portuguese and use local currency (BRL) when referencing money.
How to establish Brazil payroll outsourcing
To establish and run a Brazil payroll system yourself, your organization will need to follow a complex set of regulations and administrative procedures that are unique to Brazil. It may require traveling to the country, and you will need to officially register with the authorities, open bank accounts, and hire staff.
Alternatively, you can outsource everything to Horizons. Our experts can take care of the entire Brazil payroll outsourcing process for you, from setup to management, HR, and hiring, whether or not your business has an entity in Brazil.
Request a Proposal
Your all-in-one solution for Brazil payroll outsourcing.
Horizons’ Brazil payroll, PEO, and employer of record services enable your business to start trading in Brazil compliantly and more efficiently. We provide everything necessary to begin your Brazil operations in as little as 48 hours, even if you don’t have a registered entity in the country, and could save your business as much as 82% in expansion costs.
Additionally, Horizons can manage your company’s Brazil payroll outsourcing, benefits, and expenses, along with any compliance and HR work. As the only global PEO with an in-house recruitment team, our Brazil experts can also find, hire, and onboard your local employees so you don’t have to.
