Establishing and managing payroll in Russia
Russia is a huge country with a diverse culture, a powerful economy, and huge potential for businesses willing to make the effort of expanding their operations there.
However, the process of hiring and setting up a payroll in Russia can be difficult for foreign organizations, with language barriers, and regular unexpected delays often stalling progress and cutting into revenues.
At Horizons, we help organizations from all sectors to build and scale their operations in Russia with our payroll outsourcing services. We will handle your organization’s payroll setup and management, giving you full flexibility to focus on your Russian expansion, even if you don’t yet have an established entity in the country.
If you have an entity in Russia
For businesses that have already registered an official entity in Russia, 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 Russia in the long-term.
If you don’t have an entity in Russia
For organizations that have not established an entity in Russia, we provide full support to help set up, manage a payroll, and hire your local workforce. Through our Russian subsidiary, you can recruit and pay your employees, giving you greater flexibility a scalable, low-risk route into the Russian market.
Expanding your business in Russia 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.
An Established Presence
Our in-country subsidiary will act as employer of record, offering you a presence in Russia 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 Russia.
Up-To-Date Compliance
We’ll ensure you stay fully compliant at all times with the laws laid out in Russia’s business and employment regulations.
A Single Point of Contact
Our centralized service gives you a single point of contact, simplifying the entire Russian employment process.
Proven Global Expertise
Our in-house teams of payroll and HR experts have already helped all kinds of organizations expand globally.
Russia payroll guide
Taxation and withholdings in Russia
Employers in Russia must pay a contribution to certain social benefits for their employees These contributions cover things like pensions, disability insurance, and more, and total around 22% of salaries (although there are maximum limits in place).
Employees in Russia need to pay 13% in income tax of income. This does vary, however, for foreign workers and in some other situations.
Companies in Russia need to pay a corporate tax of roughly 20%.
Entitlements and terminations rules in Russia
Employers in Russia may need to negotiate termination, severance, and other entitlement terms on an individual basis with their employees. As a rough estimate, employees receive several (three or more) months of severance pay in place of a notice period.
We strongly advise that you enlist professional advice when terminating employment contracts in Russia, as litigation is common.
Probation periods are generally limited to three months during which time employees are not usually entitled to these notice periods upon termination.
How to establish a Russia payroll
To establish and run payroll yourself, your organization will need to follow a complex set of laws and procedures that are unique to Russia, as well as operate and negotiate in the Russian 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 outsource everything to Horizons. Our Russia experts can take care of the entire payroll process for you, from setup to management, HR, and hiring, whether or not your business has an entity in Russia.
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Your all-in-one solution for payroll outsourcing and Russia expansion
Horizons’ Russia payroll, PEO, and employer of record services enable your business to start trading in Russia compliantly and more efficiently. We provide everything necessary to begin your Russian 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, our experts can manage your company’s Russia payroll, benefits, and expenses, along with any compliance and HR work. As the only global PEO with an in-house recruitment team, our dedicated staff can also find, hire, and onboard your local employees, saving you time and fast-tracking your expansion progress.
