Cameroon is a central African country bordering the Atlantic Ocean. Its official languages are French and English, and the country is known as a difficult country in which to set up a business. Part of the difficulty is setting up your Cameroon payroll while you’re also trying to hire employees, give out compensation and benefits, and establish a subsidiary.
Globalization Partners can take setting up your payroll off your to-do list with Cameroon payroll outsourcing. We use our existing subsidiaries around the world to provide a host of global expansion services. When you work with us, you won’t have to incorporate in the country or worry about compliance — we’ll take the risk off your shoulders.
Taxation Rules in Cameroon
Cameroon’s tax year follows the regular calendar year and ends on December 31. Employees pay personal income taxes on a sliding scale between 11 and 38.5%. Employers have to deduct taxes from employees’ salaries and give the funds to the proper authorities before the 15th of each month. This Pay As You Earn (PAYE) system is not required if your employee makes less than 62,000 XAF a month.
Cameroon Payroll Options for Companies
Different payroll structures work for different companies, so you should choose the best Cameroon payroll option for your business goals. Your options follow:
- Internal: Large companies with a strong commitment to Cameroon can often create an internal payroll using a robust HR staff. This option usually works best for larger subsidiaries with a bigger budget.
- Remote: You can also pay employees through a remote option if your parent company already has its own payroll. Although it may streamline payroll, your employees will have different regulations based on what country they work in.
- Local company: Working with a Cameroon payroll processing company is a great way to outsource your payroll, though your company will still need to take care of compliance.
- Global PEO: Choosing a global PEO such as Globalization Partners is the only option that will take care of your payroll and compliance. We’ll add your employees to our compliant payroll, so you won’t have to worry about anything.
How to Set Up a Payroll in Cameroon
If you don’t work with a global PEO, you’ll have to establish a subsidiary before you set up your Cameroon payroll. Since the country is notoriously difficult for doing business, it could take you several months before you’re finally ready to hire employees and get started working in Cameroon.
Globalization Partners eliminates the incorporation requirement through our suite of global expansion services. In addition to Cameroon payroll outsourcing, we can handle everything from hiring employees who work for you to giving out the right level of compensation and benefits. As the Employer of Record, we’ll be the ones responsible for the risk of compliance.
Including entitlement and termination terms in an employment contract is a great way to ensure compliance even before you set up your Cameroon payroll. Termination terms depend on whether your employee has a fixed-term or indefinite-term employment contract. All employees who have worked for at least two years generally get severance pay determined by the minister in charge of labor.
Payroll Processing Company in Cameroon
Globalization Partners can make your Cameroon expansion a breeze with Cameroon payroll outsourcing and more. Contact us today for additional information.