Lebanon Payroll Taxation,Setup and Services

Lebanon is a great country for businesses that are looking to expand their operations to new regions. It offers great incentives to investors and to foreign professionals looking for a job. However, there are several aspects, such as Lebanon payroll, you have to consider before carrying out your expansion.

It is important to determine how to hire your employees and how to pay them. Therefore, you have to consider the payroll work as essential for your business.

You could either get payroll services Lebanon to solve your needs or decide to do the payroll employee Lebanon on your own.

Here at Connect Resources, we can be your trusted payroll outsourcing Lebanon provider. We can help you navigate the complexities of the Lebanon payroll process so you can deliver timely and accurate payments. As a payroll services company, we ensure the best result.

Taxation rules in Lebanon

Lebanon is a country characterized by its robust social security policy. Both employers and employees contribute to it.

Therefore, when it comes to Lebanon employee payroll services, there are several taxation rules you have to know:

  • Employers have to contribute 22,5% divided into the following: 8% for sickness and maternity benefits; 8,5% of total earnings for end-of-service benefits, and 6% for family benefit schemes.
  • Employees have to pay 3% due to sickness and maternity benefits schemes.
  • The income tax in Lebanon ranges from 2-25%
  • Corporate income tax is 17%

If these matters seem confusing to you, then you have to request our PEO outsourcing to deal with taxation, open payroll, and more.

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Payroll options in Lebanon

There are several options businesses have available when it comes to paying their employees in Lebanon. You can choose any of the following:

In-house payroll:

You can choose to run your payroll using your internal resources. You would need to hire specialized employees to do this task, get familiar with compliance laws, and get the software and equipment. Thus, you would need a full HR staff and invest time to process your payroll.

Remote payroll:

You can run your payroll using your parent company’s resources. This is an option if you do not want to run your payroll internally or look for payroll providers. However, it may be complicated since it can lead to non-compliance issues because you have to follow separate regulations.

Local outsourcing:

You can for a PEO payroll, which will help you process your payments and carry out all the other tasks. Thus, an external agency will be in charge of your payroll but you will still be liable for every PEO employee.

Employer of Record:

A global PEO, or Employer of Record, can offer a payroll global. Therefore, you would not have to incorporate a company since you would be using the provider’s local entity.

Setting up payroll in Lebanon

Setting up payroll may be a challenging task for a foreign employer. First of all, you need to learn everything you can about local regulations to ensure you stay in compliance.

Also, you have to decide if you want to register an entity or not. If you do not have a subsidiary in Lebanon, you cannot run your service payroll.

According to Lebanese law, you are required to have a subsidiary in order to be able to hire employees, pay them, and get started with your operations in the country.

Therefore, you have two options for setting up your payroll:

Establish a subsidiary:

Incorporate a company in Lebanon. This process may delay your start date, and also can be costly. Once you have established your subsidiary, you can decide if you want to set up your payroll internally or if you want to hire one of the PEO payroll companies.

Hire an EOR:

If you do not want to wait to start your operations in the country, you need to look for an EOR. This provider can help you hire employees, and also can provide payroll processing services. Connect Resources can be your EOR and payroll outsourcing company so you can start in no time, and be productive from the first day.

Termination terms

When it comes to handling your payroll, you also have to take into account the entitlement and termination terms. It is important, as an employer, to discuss these with the employee and include them in the employment contract.

In Lebanon, if you fail to provide this benefit, you can face potential litigation, and this can put your business in danger.

Therefore, you have to mutually reach an agreement that satisfies both parties. For example, both the employer and employee can decide to not include any severance pay. But make sure to include it in the contract.

Since this matter can be confusing, you can always look for PEO payroll services to help you prevent any issues that may happen. This is because if any of the parties breaks the contract, it is possible for the other party to request compensation.

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Why Choose Us

Connect Resources is one of the leading Lebanon payroll companies in the Middle East. We can solve your needs and provide a tailored solution with our outsourcing payroll services. Our team of specialists is readily available to solve your issues.

We provide the best PEO services so you can have no worries in your expansion. As one of the best payroll processing companies, our goal is to help you ease this process for you. Contact us to get the best payroll processing outsourcing service.


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