Establishing and maintaining payroll in the Dominican Republic
To build a business and hire employees in the Dominican Republic, you will need to establish a Dominican Republic payroll and may need to register an official entity. This is a complicated process and requires strict adherence to the country’s unique regulations and application procedures. Because of this, the payroll setup process can take longer than expected and cause delays with expansion efforts, potentially costing your business time and lost revenues.
Horizons offers a flexible range of payroll outsourcing services for organizations expanding into the Dominican Republic. Our dedicated team can handle all the legal work, tax compliance, and administration, even acting as your employer of record in the country, making the whole expansion process simpler, faster, and more efficient.
If you have an entity
If you have already registered an entity in the Dominican Republic, then we can take care of your payroll setup and management, using our expert knowledge of the Dominican Republic’s regulations to keep you fully compliant.
This service is well-suited to larger organizations and those looking to establish a long-term presence in the Dominican Republic.
If you don’t have an entity
If you haven’t established an entity in the Dominican Republic, our in-country subsidiary can act as your employer of record. We will take care of all payroll, contracts, associated legal work, and administration, helping you to outsource all the legwork and focus on successful expansion.
This service is perfectly suited to an organization looking for full flexibility and low risk when expanding into the Dominican Republic. We will take care of everything for you and be legally liable for employment, while you get to benefit from locally sourced talent.
Build your business in the Dominican Republic with help from Horizons
Dominican Republic payroll guide
What withholdings and taxes are required in the Dominican Republic?
Both employers and employees in the Dominican Republic must pay health insurance contributions. Employers must pay 3% of salary and employees must pay 7%. Additionally, employees must pay around7% of salary to disability/pension and employers must pay 1.25% to workplace insurance.
Income tax in the Dominican Republic is progressive, with workers paying a higher percentage in tax at higher income levels. The rates range from 0% to 25%.
Entitlements and terminations
In the Dominican Republic, the entitlements surrounding notice of termination and severance payments are generally negotiated on a case-by-case basis by trade unions or individual employees. Notice periods and severance payments both usually increase with an employee’s length of service.
How to establish a Dominican Republic payroll
You may choose to establish an internal payroll in the Dominican Republic, but this is a time-intensive option that can be very difficult to execute in practice, with language barriers, cultural differences, and frequently changing regulations getting in the way. The simplest option is to outsource your Dominican Republic payroll setup and management.
Alternatively, you can choose to outsource all the setup to Horizons to ensure your expansion into the Dominican Republic is as simple and hassle-free as possible. Additionally, we can offer our employer of record service, so even organizations without an entity in the country can benefit from our comprehensive services.
Your all-in-one solution for payroll outsourcing and global expansion
Horizons’ Dominican Republic payroll, PEO, and employer of record services enable your business to quickly and compliantly begin trading in the Dominican Republic within just 48 hours. You don’t even need to have a registered entity to benefit, and our services could save you as much as 82% in expansion costs.
Our Dominican Republic experts can also manage your organization’s payroll, expenses, and benefits in the Dominican Republic, along with HR duties and employment and tax compliance. As the only global PEO with an in-house recruitment team, we can also take care of the sourcing, hiring, and onboarding of your local workforce.