Payroll outsourcing in Costa Rica can be a great option for anyone looking to streamline their core operations and hand off an administration-heavy task associated with doing business in the Central American country.
While a traditional accounting firm in Costa Rica can be contracted for the job, it will also be offered by an employer of record (EOR) — which will sometimes be known as a professional employer organization (PEO).
An employer of record in Costa Rica is able to hire staff on your behalf via its locally incorporated entity, meaning that you retain full control over their workloads and schedules, while they are officially employees of the EOR.
SEE ALSO: Key Requirements for Starting a Business in Costa Rica
When you hire via an employer of record in Costa Rica, you avoid going through company formation and liquidation, while the EOR also handles employee onboarding and offboarding.
As well as guaranteeing compliance with local legislation, the employer of record can also support you with the search and recruitment of those staff.
Within this context, payroll outsourcing in Costa Rica becomes a small but important element of what an employer of record offers, and could be part of a limited services agreement that you take out prior to expanding the human resources support you receive from that provider.
Contact us today to find out more about how we can support you doing business in Costa Rica.
Or read on to find out more about the Central American country as an investment destination, as well as some of the benefits associated with payroll outsourcing and working with an employer of record.
Costa Rica popular among foreign investors
Costa Rica is one of the most peaceful and stable nations in Latin America and the Caribbean, with the country famed for having no standing army and being reliant on the nearby United States for defending its territorial integrity. As well as providing defence, the United States is also Costa Rica’s primary trade partner.
The Central American country has witnessed significant growth since the early-1980s, with both gross domestic product (GDP) and gross national income (GNI) increasing exponentially to make Costa Rica one of the most prosperous nations in the region.
Costa Rica also boasts one of the lowest violent crime rates in Latin America, as well as some of the highest rates of English proficiency, partly explaining why the country is home to such a large US expatriate population, as well as being a highly popular destination for US tourists.
This also contributes to the country being particularly popular among investors, with foreign direct investment (FDI) accounting for 7.8% of GDP prior to the onset of the COVID-19 pandemic in the first part of 2020.
While FDI as a percentage of GDP almost halved during the global health emergency — in keeping with a general economic downturn experienced throughout the region — the World Bank recently predicted that GDP would grow 3.8% in 2021.
Meanwhile, the government has made considerable efforts to bolster FDI, cutting taxes and easing residency requirements, as well as announcing a scheme to attract more remote workers to the country.
In this context, foreigners face an increasingly attractive investment environment and may wish to seek out an employer of record to provide payroll outsourcing in Costa Rica.
Why choose an employer of record for payroll outsourcing in Costa Rica?
When you work with an employer of record to receive payroll outsourcing in Costa Rica, or any other package of services, you can count on the following benefits:
Guaranteed compliance: As part of the services agreement, your provider of payroll outsourcing in Costa Rica will guarantee your compliance with all relevant employment and labor laws.
You will be able to rely on their understanding of the regulatory regime and experience in the market, avoiding financial penalties or other legal inconveniences, while maintaining the good standing of your company in the eyes of local authorities.
Cost effectiveness: Although contracting an employer of record in Costa Rica will come with a fee, that will often be less costly than handling operations in-house, once you factor in onboarding and offboarding the employees who will handle the task.
Because outsourcing offers scope to quickly scale up and down your operations, as well as offering the option to broaden the scope of that services agreement as your needs require.
Limited administration: Choosing to outsource payroll or any aspect of your recruitment and human resources means significantly cutting down the burden of administrative tasks you have to deal with in-house.
That will also allow you to focus your core staff recruitment on areas of the business that are more closely related to the profit-generating aspects of your business.
Biz Latin Hub offers payroll outsourcing in Costa Rica
At Biz Latin Hub, our local team of corporate support specialists is on hand to provide payroll outsourcing in Costa Rica, or a broader array of employer of record services.
Our comprehensive portfolio includes company formation, accounting & taxation, hiring & EOR, visa processing, and legal services, meaning that we can provide a tailored package of integrated back-office services to suit every need.
We also have teams in place in 15 other markets around Latin America and the Caribbean and specialize in multi-jurisdiction market entry.
Contact us today to find out more about how we can support you doing business in Costa Rica.
Or read about our team and expert authors.
