Guatemala Payroll Services

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

Guatemalan Payroll

The Republic of Guatemala is Central America’s dominant economy and holds a tempting strategic location as a stepping stone for further expansion into the region. Road and rail links to the north go to Mexico and the United States of America; the rest of Central America and South America lies to the south. Guatemala’s western coastline is on the Pacific, while on the eastern seaboard the Caribbean opens trade routes to the Atlantic, Europe and Africa.

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Foreign Direct Investment (FDI) is drawn towards the economic opportunities Guatemala offers, particularly in the areas of utilities, manufacturing and engineering, finance and insurance services. Hydroelectric power and geothermal are other areas attracting international funding. Exports are based on the country’s agriculture sector, and they include palm oil, raw sugar, bananas, coffee and nutmeg.

International companies expanding operations in Guatemala to maximise this potential face a major commitment if they also intend running the payroll for their company. Accessing this potential nevertheless requires expert knowledge. Guatemala’s extra layers of bureaucracy jeopardise implementing your business plan swiftly and successfully… this is why you need Bradford Jacobs alongside you. We have total understanding of all the issues surrounding Guatemala’s payroll regulations, contracts, 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.

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Available Guatemalan Payroll Options

  • Remote payroll – This option allows businesses to operate under a single payroll system, by adding employees in Guatemala 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 Guatemala. However, this does require hiring dedicated HR staff who understand Guatemalan employment and compliance laws.
  • Guatemalas’ payroll processing company – If you are considering outsourcing, then working with a Guatemalan payroll company will help in processing your payroll – but not when it comes to compliance.
  • Guatemalas’ 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 Guatemala. We take the administrative stress off your shoulders so you can focus on what you do best.

Foreign companies intending to operate in Guatemala have the option of setting up a subsidiary in the country in order to run payroll for their employees. Foreign-owned subsidiaries in Guatemala are typically set up as a limited liability company (LLC), in Spanish a Sociedad de Responsabilidad Limitada (SRL), which generally protects shareholders, directors and officers from liabilities. LLCs in Guatemala operate under the Commercial Code.

Once the subsidiary is established, procedures for onboarding employees onto the company payroll in Guatemala include:

  • Verifying the individual’s tax identification number, Número de Identificaciόn Tributaria (NIT), with the Superintendence of Tax Administration (Superintendencia de Administración Tributaria,SAT). This is necessary for remitting payroll taxes
  • Employees with a monthly wage of more than GTQ 3,900 (€457, US$500) must apply for their own NIT, the employer cannot do so on their behalf
  • Ensure the prospective employee is registered with the Guatemalan Institute of Social Security (Instituto Guatemalteco de Seguridad Social, IGSS)
  • Since January 16 2023, all employees must be registered with the IGSS, not only if the company employs more than three workers, as applied previously; remittances to the IGSS must have started from that date if employees were not previously registered
  • Every employee put on payroll must have a written employment contract, with a copy deposited with the Ministry of Labour https://leyestributariasguatemala.com/generalidades/superintendencia-administracion-tributaria/

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