It is essential for companies planning to run Payroll Services in Iceland to have a clear plan and make the right moves from day one. Companies moving into Iceland as a base for further International Expansion open up many opportunities in Scandinavia, Northern Europe, and the United Kingdom. Challenges come alongside the potential benefits, however. Payroll management is among those challenges, whether your company is considering moving employees abroad or hiring new staff in-country. Employment laws, payroll and income tax regulations are areas where you cannot afford mistakes.
Setting up a subsidiary in Iceland to run payroll is one option, but this involves a protracted process of registration, and poses many challenges – but at Bradford Jacobs, we have all the answers. Our Professional Employer Organisation (PEO) and Employer of Record (EOR) services provide complete solutions to every issue your company will face before your planned move into the Icelandic Market. Our teams step in from the start, locating top-rated talent in Iceland then guiding you through such procedures and navigating the administration of the Icelandic payroll system for you.
Remote payroll – This option allows businesses to operate under a single payroll system by adding employees in Iceland to the parent company’s payroll. However, these employees must operate under different regulations, which is likely to cause problems.
Internal payroll – You may operate payroll for your subsidiary, especially if you are committed to growing your company’s presence in Iceland. However, this does require hiring dedicated HR staff who understand Iceland’s employment and compliance laws.
Iceland payroll processing company – If you are considering outsourcing, then working with an Icelandic payroll company will help in processing your payroll – but not when it comes to compliance.
Iceland payroll outsourcing – However, another option is available to solve both concerns – by working with Bradford Jacobs. We can handle payroll and compliance for all your employees in Iceland. We lift the administrative stress from your shoulders so you can focus on what you do best.
We recruit the staff in-country and then implement our comprehensive knowledge of tax and payroll regulations. As part of our service, we file returns and remits associated payments for tax and social security contributions directly from our payroll system to the relevant authorities. Outsourcing your payroll in Iceland will streamline your operations by dealing with the following:
International companies planning to hire staff in Iceland and run payroll can open a legal entity in the country. The typical choice is establishing a private limited liability company as a subsidiary, an Einkahlutafélag, or Ehf. This company type requires a minimum share capital of 500,000 Icelandic kronor (ISK), the equivalent of €3,434 or US$3,874.
Some other requirements include the following: