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Guatemala Payroll Services & Solutions

Horizons will simplify and fast-track your expansion into Guatemala

Establishing and managing payroll in Guatemala

If you are planning on hiring in Guatemala, the process of hiring and setting up payroll can be difficult for foreign organizations, with language barriers and regular unexpected delays often stalling progress and cutting into revenues.

At Horizons, we specialize in providing Guatemala payroll support services, providing organizations with a way to outsource the time-consuming process of setting up and managing payroll. We offer flexible outsourcing packages for businesses that have already registered an entity in Guatemala, as well as those that haven’t

If you have an entity

For businesses that have already registered an official entity in Guatemala, we offer a comprehensive and tailored payroll outsourcing service. Our expert team will set up and manage your payroll, also handling all of your associated administration, HR, and compliance with local laws.

This level of outsourcing is ideally suited to larger organizations and those expanding into Guatemala in the long-term.

If you don’t have an entity

If you have not registered an official entity in Guatemala yet, we can provide our more comprehensive payroll service, offering our Guatemala subsidiary to work as your employer of record in the country. Our Guatemala payroll experts can also manage your HR, contracts, legal compliance, and more.

This route to employing in Guatemala is an ideal way to flexibly expand your business into Guatemala’s lucrative marketplace without any hassle.

Expanding your business in Guatemala 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 Guatemala 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 Guatemala.

Up-To-Date Compliance

We’ll ensure you stay fully compliant at all times with the laws laid out in Guatemala’s business and employment regulations.

Single Point of Contact

Our centralized service gives you a single point of contact, simplifying the entire Guatemalan employment process.

Proven Worldwide Expertise

Our in-house teams of payroll and HR experts have already helped all kinds of organizations expand globally.

Guatemala payroll guide

Taxation and withholdings in Guatemala

Employers and employees must both contribute a percentage of salary toward the country’s social security system. Employers provide 12.67% and employees provide 4.83%.

Income tax in Guatemala is either 5% or 7%, depending on the level of income.

Entitlements and terminations rules in Guatemala

Notice of termination is generally required for employees in Guatemala. The exact length of notice depends on the employee’s length of service. After six months, employees are entitled to one week of notice and this rises to ten days for one year of service and continues to rise up to one month after five years of service.

Severance payments are also sometimes required and usually equals around one month of salary per year of service.

How to establish payroll in Guatemala

To establish and run payroll yourself, your organization will need to follow a complex set of laws and procedures that are unique to Guatemala, as well as operate and negotiate in the Guatemalan language. You will usually have to register a legal entity, sign up with the relevant authorities, open bank accounts, and hire a workforce.

Alternatively, you can choose to outsource the payroll setup and management to Horizons.  Our experts can set up and manage your payroll and all associated administration so you don’t have to. We can also provide use of our Guatemala subsidiary to act as your employer or record, so you can start hiring and expanding in Guatemala even if you don’t have an established entity in the country.

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Your all-in-one solution for payroll outsourcing and Guatemala expansion

Horizons’ Guatemala payroll, PEO, and employer of record services enable your business to start trading in Guatemala compliantly and more efficiently. We provide everything necessary to begin your Guatemalan 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.

At Horizons, we can also take care of your organization’s payroll, expenses, benefits, and more in Guatemala. Additionally, we will cover your HR duties, as well as employment and tax compliance work. And as the only global PEO with a dedicated in-house recruitment department, Horizons can rapidly source, hire, and onboard your local employees.