Companies that plan their expansion to Qatar are making a great decision. It is a country that is well-known for its large population of expatriates that are looking for a job opportunity. Therefore, you can hire outstanding professionals to build your workforce.
However, you need to determine how to pay them. Carrying out the Qatar payroll work in a foreign country may be challenging. This is why some companies opt for PEO outsourcing.
With payroll processing outsourcing you will not have to worry about setting up your payroll. Moreover, you will not have to run a remote payroll since you get specialists that will handle this task on your behalf.
Nevertheless, it is important to be aware of how to run your Qatar payroll process effectively. To do this you have to learn about some tips and pieces of advice that allow you to understand better the payroll employee Qatar.
Taxation Rules in Qatar
When it comes to Qatar employee payroll services, it is important to understand taxation rules. Here’s what you need to know:
- There are no personal income taxes
- There are no individual social security taxes
- It has a flat 10% corporate income tax for most cases
Guideline to calculate payroll in Qatar
If you want to know how to calculate the payments for your employees, you have to follow the next steps for setting up payroll:
- Get your EIN (Employer Identification Number)
- Create your tax identification numbers (state or municipal)
- Collect all the information about your employees
- Create your payroll schedule
- Determine the payment dates
PEO payroll companies help you save all the effort you have to do, since they calculate payments effectively.
After that, you need to consider the following:
- Check the employee schedules to calculate hours and absences
- Calculate overtime
- Calculate the gross salary
- Determine deductions
- Calculate net salary
- Make payments using direct deposit or paper check
General recommendations for Qatar payroll processing
To do a great processing of your open payroll you need to follow the next guidelines:
- Employees should receive their wages at least once every month, in case of workers employed on annual or monthly wages.
- According to Qatar labor law, there are no statutory pay components that should be included in employee’s salary.
- Fixed components in employee’s salary are basic salary, transport allowance, house rent allowance, and others.
- Variable components in employee’s salary are sales commissions, incentives, bonus, relocation allowances, overtime, and mobile allowances.
- The minimum salary payable is QAR 1000. Also, companies must provide QAR 500 for accommodation, and QAR 300 for food. These amounts are monthly.
Payroll options in Qatar for Companies
Once you know all the aspects that are required for running your payroll, you need to determine how to do it. You could opt for payroll services Qatar provided by Qatar payroll companies. Or perhaps you prefer to calculate your payroll with your in-house team.
For this reason, you need to know which options you have available:
Your in-house team will be in charge of processing the payroll of your local employees. This requires an investment in equipment, software, and others.
You may add your Qatar payroll to your parent company payroll. This requires additional effort since you need to ensure you are meeting local laws.
A payroll outsourcing company could be a great choice if you feel overwhelmed by the amount of work that this involves. With a payroll services company you can relieve the burden of processing your payments and making calculations.
How to set up your Qatar Payroll
Unless you opt for payroll outsourcing Qatar, you have to set up a local entity. It is important to point out that if you want to start your operations you must have a subsidiary incorporated. This process can take weeks or even months.
After you have incorporated your company, you can start hiring employees, start operations, and run your payroll.
You can receive assistance from a PEO payroll once you begin working. Moreover, here at Connect Resources we can be your payroll providers and also offer our entity so you do not have to set up a local company.
Termination/Entitlement in Qatar
Termination is also a crucial part of payroll processing companies. It is one of the most confusing aspects that foreign companies need to handle. Since termination rules may vary from your country of origin, it can be challenging to understand it.
However, here is what you need to know:
- Add termination and entitlement terms to your employment contracts
- According to Qatar labor law, employees should have a 30-day notice of termination for indefinite contracts. If they have worked for more than 5 years to you, the notification period should be of at least two months before date of termination.
With PEO services, you have nothing to worry about termination and entitlement terms. By having a third party that manages your PEO employee you can have peace of mind with your payments.
Why Choose Us
Here at Connect Resources we can provide the assistance you need with payroll global. With our service payroll you can relieve your burden.
Whether you are planning an expansion or you need assistance with ongoing operations, we offer our outsourcing payroll services to help you succeed.
By opting for our payroll processing services you can ensure your processes are smooth and your workers get paid on time. Choose our PEO payroll services to take your business to a whole new level.