International companies extending their operations into Israel open up a vista of opportunities throughout the eastern Mediterranean and North Africa.
However, challenges come alongside the potential benefits and payroll management is among them. 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.
Bradford Jacobs’ Employer of Record (EOR) payroll solutions will navigate around these potential problems effectively and efficiently by putting into action our comprehensive knowledge of all these potentially troublesome areas.
Running Israeli payroll requires keeping up to date with changes in rules and regulations. As part of our service, we file returns and remit associated deductions for wages tax and social security contributions directly from our payroll system to the relevant authorities.
Outsourcing your payroll in Israel will streamline your operations by dealing with the following:
- Complying with the provisions of the Income Tax Ordinance, for both nationals and non-residents covering wages, dividends, assets.
- Registering with the National Insurance Institute for remitting social security contributions.
- Filing annual tax returns on a calendar year basis.
- Remitting withheld taxes by the 15th of the following month’s deadline.
- Creating employment contracts.
- Creating pay slips, which under Israeli accountancy rules must be divided into various sections.
- Salaries must be paid by the ninth of the following month.
- Calculating monthly salary and tax contributions and completing the monthly Form 102, verifying calculations before then submitting the year-end Form 126 to the authorities.
The above checklist highlights why the vast percentage of foreign companies expanding into Israel’s business environment hand their payroll to Employer of Record (EOR) providers such as Bradford Jacobs.
