Costa Rica Payroll Services

At Bradford Jacobs, we navigate the administration of the Costa Rican payroll system for you. We do the work, so you do not have to.

Costa Rican Payroll

Operating payroll in the Republic of Costa Rica is a huge step for international companies moving into this developing and forward-looking economy. If you are making your move into the Central American market – and possibly farther afield into Latin and South America – you must understand the issues and make the right decisions.

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How We Can Help You

Expert knowledge is essential to deal with the paperwork and red tape that will jeopardise successfully implementing your business plan… that is why you need Bradford Jacobs at your side. We have made it our priority to take a firm grasp on all the issues surrounding Costa Rica’s payroll, taxes, labour laws and every aspect of employment compliance.

Bradford Jacobs’ Professional Employer Organisation (PEO) and Employer of Record (EOR) platforms and networks provide complete answers to every question your company will encounter before you move into the economy, especially when it comes to operating payroll.

  • Remote payroll – This option allows businesses to operate under a single payroll system, by adding employees in Costa Rica to your 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 Costa Rica. However, this does require hiring dedicated HR staff who understand Costa Rican employment and compliance laws.
  • Costa Ricas’ payroll processing company – If you are considering outsourcing, then working with a Costa Rican payroll company will help in processing your payroll – but not when it comes to compliance.
  • Costa Ricas’ payroll outsourcing – However, there is another option available that solves both concerns – by working with Bradford Jacobs. We can handle payroll and compliance for all your employees in Costa Rica. We take the administrative stress off your shoulders so you can focus on what you do best.

The first step for foreign companies intending to set up payroll in Costa Rica is to establish a legal entity in the country, the usual choice is a limited liability company – a Sociedad de Responsabilidad Limitada, or SRL, which operates according to Commercial Code. Although this is not a legal requirement, it will protect the parent company from any liabilities of the subsidiary.

Both local and foreign workers in Costa Rica are generally covered by the Labour Code (Cόdigo del Trabajo). The requirements for registering them for payroll include the following:

  • Registering employees with the General Tax Administration, which is responsible for collecting taxes and comes under the Ministry of Finance
  • Verifying the individual’s nine-digit Tax Identification Number, which in the case of a citizen is also their personal identification ID
  • The TIN for foreigners is the 11- or 12-digit DIMEX (Immigration Identification Document for Foreigners)
  • Foreigners without a DIMEX, have a 10-digit NITE special tax identification number
  • It is compulsory to register employees with the social insurance fund, the Caja Costarricense de Seguro Social, CCSS for medical care, disability and retirement benefits
  • Additionally, register employees with the National Insurance Institute (Instituto de Seguro Nacional, INS) if their residency status does not permit registration with the CCSS

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