If you are interested in entering the Argentinian market on a short-term or limited-scale basis, or you already operate there and are looking to reduce your in-house administrative burden, one option to consider is payroll outsourcing. Because when you choose payroll outsourcing in Argentina, you hand over responsibility for managing the salaries and benefits of some or all of your staff, freeing you up to focus on other aspects of your business.
In the event that you want the outsourcing company to provide a more comprehensive service that includes recruitment, you will need to seek out a specialized firm commonly known as a professional employer organization (PEO) but also referred to as an employer of record (EOR). Because a PEO in Argentina will be able to find and hire the right staff on your behalf, as well as manage your payroll.
Argentina has the third-largest economy in Latin America, registering a gross domestic product (GDP) of $449.7 billion in 2019 (all figures in USD), according to World Bank data. The country is renowned for its beef production, but also counts crops for human and animal consumption among its major export products, highlighting the importance of the agricultural sector to the economy. Other key exports include vehicles and hydrocarbons.
The country also has a large and highly-developed industrial sector, while foreign direct investment (FDI) inflows are some of the highest in the region, despite significant variation over recent years that has seen FDI inflows range from $3.26 billion to $15.3 billion per year since 2004, with FDI inflows of $6.66 billion registered in 2019.
Argentina is also a prosperous country, registering a gross national income (GNI) of $11,130 that same year — a figure that places it as an upper-middle-income nation by international standards. The country has a well-established middle class and boasts a high level of education, including the greatest level of English proficiency among non-English speaking nations in Latin America and the Caribbean.
If you are considering entering the Argentinian market, or are already present there and wish to reduce your administrative burden, read on to understand more about payroll outsourcing in Argentina. Or go ahead and contact us now to discuss your business options.
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What is payroll outsourcing in Argentina?
Payroll outsourcing in Argentina involves contracting a third party to oversee the administration of payroll matters for all or some of the workers in a company. Outsourcing payroll brings with it the advantage that your company can refrain from hiring in-house payroll professionals, thus avoiding a heavy administrative job, while also operating in the knowledge that the dedicated payroll outsourcing firm you have contracted will already have the right people in place.
As previously stated, when payroll outsourcing is provided by a PEO in Argentina, it potentially comes with a host of other services, such as recruiting, onboarding, and offboarding your staff, preparing contacts and official documents, and providing you with ongoing advice on relevant local legislation.
One of the key advantages of outsourcing payroll via a PEO firm, rather than a standard accounting company, is that they can hire staff on your behalf without you having a legal entity established in the country. So you can have an overseas workforce in the time it takes the PEO firm to find them, while avoiding the time-consuming and more costly process of company incorporation in Argentina.
Regardless of which type of firm you choose for payroll outsourcing in Argentina, some of the jobs you can expect them to undertake include:
- Calculation of salaries
- Withholding of income taxes, social security, and pension contributions
- Management of salary receipts
- Deposits of wages and benefits
- Creation of management reports
- Development of government report
Advantages of payroll outsourcing in Argentina
Some of the advantages of payroll outsourcing in Argentina include:
Reduced administration: By outsourcing payroll, you will diminish your administrative burden significantly, only having to liaise with the accounting company of PEO firm you have contracted.
Guaranteed compliance: Non-compliance with local legislations and norms can result in legal penalties and fines, which in turn can damage your company’s reputation and/or put your operations in jeopardy. A reliable service provider will guarantee that you comply with all local regulations.
Expert knowledge: The company you choose to outsource payroll to in Argentina will be staffed by local legal and accounting experts, aware of all of the latest legislative developments, as well as expected coming changes, that could affect your business.
Technological solutions: In the event that you are outsourcing payroll in Argentina from overseas, you will want your provider to employ the latest human resources management technology, which will allow you to monitor their work as closely as you see fit.
How to use a payroll calculator
If you are keen to get an idea of the possible costs involved in payroll outsourcing in Argentina, using a payroll calculator is one way to get a very good estimate.
Because while a payroll calculator won’t be completely accurate, it will give you the opportunity to search according to the salary, the number of employees, the country you want to enter, and the currency you wish to work in. As such, you will be able to understand your likely costs across a range of salaries, while also being able to compare other countries as potential alternative destinations.
You can find the BLH payroll calculator at the bottom of our Hiring & PEO Services page. The calculator will allow you to make good estimations of the costs involved in hiring in Latin America and the Caribbean based on country, currency, and salary, with the calculator factoring in local statutory deductions.
To use the BLH payroll calculator, you will need to undertake the following steps:
Step 1: Select the country
Choose the country where you are doing business, or planning to launch. This feature will be useful when it comes to comparing potential alternative markets.
Step 2: Select the currency you wish to deal in
You can choose between US dollars (USD), British Sterling (GBP) and Euros, as well as the local currency for the country you are looking at, based on that which is most convenient to you. Note that for Ecuador, El Salvador, and Panama, the local currency is also USD, as they have dollarized economies.
Step 3: Indicate an employees monthly income
Here you can indicate the expected salary you will be paying an employee, in the currency of your choice.
Step 4: Calculate your estimated costs
Based on all of the information you have provided, you will receive results indicating your estimated costs, including a breakdown for estimated statutory benefits you will be liable for.
Step 5: Compare your costs to other options
With a good estimate at hand of how much your staff in Argentina would be, if you are flexible about your expansion into Latin America and the Caribbean, you can use the BLH payroll calculator to compare those costs to other jurisdictions.
Biz Latin Hub can help with payroll outsourcing in Argentina
At Biz Latin Hub, our multilingual team of accounting & taxation experts is equipped to oversee your payroll in Argentina with efficiency, while through our hiring & PEO service, we can also help you find the right staff quickly. With our complete portfolio of back-office services, including commercial representation, due diligence, and tax advisory services, we can be your single point of contact to ensure the success of your business venture in Argentina, or any of the other 15 countries across Latin America and the Caribbean where we are present.
Reach out to us now to discuss your business needs or to receive a free quote.
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