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Honduras Payroll Services & Solutions

Horizons will simplify and fast-track your expansion into Honduras

Establishing and maintaining a Honduras payroll

If you are planning a Honduran expansion, one of your first steps will be hiring a local workforce. To do this you will generally need a legal entity in the country and will need to establish an in-country payroll and employment infrastructure. This can be a long and difficult process in many cases, taking several months to complete and causing delays.

Many organizations choose to outsource this difficult phase, bypassing the administration to focus on the real work of expanding in Honduras. At Horizons, we offer full Honduras payroll outsourcing services for organizations expanding into the country, whether you have already registered a legal entity in Honduras or not.

If you have an entity

If your organization has already registered an official entity in Honduras, then you can outsource your payroll setup and management to us to get expert support and to fast-track your operations.

This level of outsourcing is perfect for larger organizations that are looking to expand into Honduras long term.

If you don’t have an entity

For organizations that have not established an entity in Honduras, we can offer a more comprehensive payroll outsourcing service using our Honduras subsidiary to act as employer of record, while also taking care of HR, contracts, legal compliance, and more.

This flexible service helps you to achieve all the key benefits of hiring locally in Honduras with the ability to scale rapidly and a reduced level of risk.

Build your business in Honduras with help from 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 Honduras 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 Honduras.

Up-To-Date Compliance

We’ll ensure you stay fully compliant at all times with Honduras’s complex business and employment legislation.

Single Point of Contact

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

Proven Worldwide Expertise

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

Honduras payroll guide

What withholdings and taxes are required in Honduras?

Employers in Honduras must make contributions to both the country’s social security scheme and unemployment fund at a rate of 3.5% and 4% of salary respectively.

Income tax in Honduras is progressive, with rates ranging from 0% to 25% depending on income level.

Entitlements and terminations

The length of mandatory notice of termination for employees in Honduras depends on their length of service. For employees with less than two months of service, notice of just 24 hours is required. This gradually increases up to two months of notice.

Severance payments may also be necessary and also vary depending on the employees’ length of service, ranging from ten days of salary up to one month of pay per year of service.

How to establish payroll in Honduras

For many businesses, setting up payroll and hiring in Honduras is likely to involve establishing a local entity, registering with the authorities, opening a bank account, and more. This can be complex and slow expansion progress significantly.

Alternatively, you can choose to outsource the setup and administration of your Honduras payroll to a global PEO. At Horizons, we provide extensive payroll support for Honduras, helping you avoid the hassle of navigating the country’s complex legal framework.

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

Horizons’ Honduras payroll services help your business to quickly and compliantly begin trading in Honduras, without the complex process of establishing a local entity and navigating local regulations. This can help your business to commence its Honduras operations in as little as 48 hours and has the potential to cut your expansion costs by more than 80%, whether or not you already have a registered entity in the country.

Our Honduras payroll experts can also manage your company’s payroll, benefits, and expenses in the country. Additionally, we can take care of your associated HR duties, as well as employment and tax/legal compliance work. As the only global PEO with an in-house recruitment team, Horizons can even find, hire, and onboard your local staff.