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Employ Candidates Compliantly in Mexico

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  1. Overview: Mexico
  2. Global PEO and payroll
  3. Global HR Compliance
  4. Work permit for hiring expats via PEO
  5. Expand without a company set up
  6. Contractor vs. employee: which is better?
  7. Global Payroll Calculator
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Global Employer of Record in Mexico

What is a Global EOR?

A Global Employer of Record (EOR) is a strategic partner that helps businesses expand their operations and hire employees in multiple countries and jurisdictions, including Mexico. The Global EOR acts as the legal employer on behalf of the foreign company, managing all aspects of HR, payroll, tax compliance, and legal obligations in Mexico and other target countries.

When expanding into Mexico, partnering with a Global EOR offers significant advantages. The Global EOR leverages its in-depth knowledge of Mexican labour laws, tax regulations, and HR practices to ensure compliance and provide seamless employment solutions. By acting as the legal employer, the Global EOR is responsible for managing employment contracts, payroll processing, tax withholding, and reporting—all in accordance with Mexican laws and regulations.

How Does a Global EOR Work?

Let’s consider an example to illustrate the role of a Global EOR in Mexico:

XYZ Corporation, a multinational European company, has identified Mexico as a key market for its business expansion. However, XYZ Corporation lacks the expertise and resources to navigate the complexities of Mexican employment laws and establish its own legal entity. Instead, they engage a Global EOR with a strong presence and experience in Mexico.

The Global EOR becomes XYZ Corporation’s trusted partner and helps them establish a compliant presence in Mexico. The Global EOR handles employee onboarding for the workforce pre-selected by XYZ Corporation, manages payroll and benefits administration in Mexico, ensures compliance with Mexican labour, tax and immigration laws, and provides ongoing support for HR-related matters. This allows XYZ Corporation to focus on its core business activities and capitalise on the opportunities presented by the Mexican market.

Moreover, the Global EOR offers scalability and flexibility, allowing XYZ Corporation to expand its operations into other countries as needed. Whether entering new markets in Latin America or expanding to different continents, the Global EOR provides a consistent and compliant employment infrastructure across multiple jurisdictions.

By partnering with a Global EOR, XYZ Corporation can streamline its global expansion efforts. The Global EOR’s expertise in Mexico and other countries helps mitigate risks, ensures compliance with local regulations, and provides a smooth and efficient process for hiring and managing employees across borders.

A Global Employer of Record is a strategic partner facilitating international expansion by managing employment-related tasks and ensuring compliance with local laws and regulations. By leveraging the services of a Global EOR, businesses like XYZ Corporation can grow their operations in Mexico and beyond, tap into local talent, and easily navigate the complexities of multiple countries and jurisdictions.

Global Employment Services Provided by a Global EOR in Mexico

Compliance and legal guidance at every step of the Global Employment Journey. 24/7 local support in Mexico and 190 countries worldwide.

1. Recruitment

2. Global Mobility

3. Checks

4. Onboarding

5. Payroll Administration

6. Working Time & PTO Processing

7. Benefits Administration

8. Tax Administration & Reporting

Offboarding

Talent skilled in highly-specialized areas Employee Work Visa and Work Permit sponsorship Health checks Employment Agreement drafting In-country registration with statutory bodies Working hours Mandatory Benefits Tax Reporting frequency and requirements; Employment agreement termination:
Executive search Dependent Visa Criminal record checks Compliant worker onboarding on your behalf Day-to-day payroll management Overtime Health insurance Employer taxes & contributions Dismissal – by the employer
Contingency workforce Visa extension Background checks Account setup in the payroll and HR system​ Monthly pay slips or other pay frequency Public holidays Workers’ compensation Employee taxes & contributions Resignation – by the employee
Application for a sponsor license for a foreign national Education checks Employee data entry and records maintenance Accruals Annual leave Unemployment insurance Withholding tax Termination by mutual agreement
Relocation assistance Managing probation periods Allowances Parental leave Voluntary Benefits Local tax payments and reporting to local authorities Notice period handling
13th and 14th salary Sick leave Share plans for executives End of financial year reporting Final settlement & severance payments
Additional leave Bonuses & Equipment provision De-registration with statutory bodies
Expenses reimbursement & business trip processing
Health insurance, dental treatment

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Partner with a Global EOR to Replace Multiple Vendors and Simplify Operations in Mexico

Partnering with a Global Employer of Record in Mexico replaces the need for multiple vendors and offers comprehensive services to streamline operations. By consolidating these services under a single provider, businesses can focus on their core activities and efficiently navigate the complexities of the Mexican market. A Global EOR can help companies establish a compliant presence in Mexico while mitigating risks and ensuring smooth operations.

Services Multiple Services by a Single Global EOR Partner
Payroll Company
Handle payroll processing, tax withholding, and reporting in compliance with Mexican regulations.
Employee Benefits Broker
Offer comprehensive employee benefits packages that comply with local laws and regulations.
HR Consultants
Provide HR expertise and support, including recruiting, onboarding, and performance management.
Background Checks Vendors
Perform background checks and screening to ensure compliance with local regulations.
IP Attorney Assist with registering and protecting intellectual property rights in Mexico.
Tax Advisor Provide tax advice and ensure compliance with local tax laws.
Translation Service Provide translation services to help bridge language barriers.
Legal Advisor Provide legal expertise and support, including contract review and compliance.
Immigration Advisor Provide support with work permits and visas for international employees.

Businesses in the process of expanding globally often face challenges when it comes to compliantly onboarding employees in foreign countries. In most cases, legal compliance requires establishing a legal in-country business entity, a complex, costly and time-consuming process many employers are not ready to undertake.

To help your organization legally onboard and payroll a workforce in Mexico, Acumen International offers a global employment solution via our Global Employer of Record (EOR) designed to help you circumvent the legalities of direct hiring, eliminating the need for you to establish a legal entity in Mexico in order to conduct business there.

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Risks Addressed by a Global Employer of Record in Mexico

Expanding a business into Mexico offers exciting opportunities in a vibrant market. However, it also entails navigating various risks and complexities related to local labour laws, tax regulations, HR practices, and vendor management. To overcome these challenges, partnering with a Global Employer of Record (EOR) in Mexico can be a strategic choice. A Global EOR is a trusted ally, helping businesses mitigate risks and ensuring compliance with Mexican laws and regulations.

The following table highlights key risks that a Global EOR in Mexico can address and the corresponding ways they can provide support:

Risk How a Global EOR Can Help
Permanent Establishment Risk A Global EOR can help mitigate the risk of creating a permanent establishment in Mexico, which can trigger additional tax obligations and regulatory requirements.
Employee Misclassification Risk A Global EOR can ensure that your employees are properly classified under Mexican law, helping to avoid costly penalties and legal disputes.
Under-taxation Risk A Global EOR can help ensure that you are paying the correct taxes in Mexico, helping avoid penalties and legal disputes.
HR Compliance Risk A Global EOR can ensure that your HR practices comply with Mexican law, including employment contracts, benefits, and termination procedures.
Immigration Compliance Risk A Global EOR can ensure that your employees have the necessary work permits and visas to work legally in Mexico.
Intellectual Property Rights Risk A Global EOR can help protect your intellectual property rights in Mexico, including registering trademarks and patents.
Vendor Management & Vetting Risk A Global EOR can help vet and manage vendors, ensuring they comply with local laws and regulations.

Spotlight on Mexico:

Mexico, a constitutional republic in North America, borders the United States to the north, the Pacific Ocean to the south and west, the Gulf of Mexico to the east, and Guatemala and Belize to the southeast. It is divided into 32 federal entities, with Mexico City as the capital.

  • Capital: Mexico City.
  • Population: 128,455,567.
  • Local currency: Mexican peso (MXN).
  • Industries: Mexico ranks among the world’s largest producers of coffee, sugar, corn, oranges, avocados, and limes. Cattle farming and fishing are also important activities in the food industry. Mexico is among the world’s leading producers of many minerals, including silver, fluorite, zinc and mercury. Moreover, oil and gas reserves are one of the country’s most precious possessions.

Advantages of Expanding Your Business to Mexico

Advantages Description
Strategic Geographical Advantage Proximity to the US and Latin American markets, facilitating access to a vast customer base and supply chain optimization.
Thriving Economy and Market Potential The second-largest economy in Latin America, diverse industries, expanding middle class, and a young, tech-savvy population.
Favourable Business Environment Streamlined regulations, reduced bureaucracy, incentives for foreign investment, special economic zones, and robust intellectual property protection.
Skilled and Competitive Workforce Large and skilled labour force, focus on education and vocational training, bilingual advantage, and proximity to the United States.
Robust Infrastructure and Connectivity Well-established transportation networks, modern logistics hubs, and advanced telecommunications systems facilitating efficient supply chain management and connectivity.
Proximity to North American Trade Agreement (USMCA) Member of the USMCA, providing preferential access to the North American market, trade integration, and elimination of barriers.

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Streamline Global Employment and HR Compliance with Acumen Employer of Record Expertise Acumen’s

Acumen’s Global Employment Solution is your trusted partner for legal onboarding and payroll management of your employees in Mexico. By leveraging our Employer of Record services, businesses can overcome legal challenges, ensure compliance with local employment laws, and reduce risks associated with expanding operations.

With Acumen International, you can entrust the complex global employment and HR management task in Mexico to our experienced team. We handle the intricacies of hiring, compensating, and managing your local and expatriate workforce, allowing you to focus on core business growth.

Our comprehensive solution covers the legal onboarding of local citizens and the facilitation of work permits and business visa sponsorships for your expatriate team. Acumen handles legal permissions, ensuring employees can work seamlessly and comply with Mexican regulations.

Partnering with Acumen means gaining access to our expertise and global network, spanning 190 countries worldwide. We specialize in meeting the legal requirements for compliant hiring and compensation, providing peace of mind for businesses expanding their operations in Mexico and beyond.

Whether you’re navigating the complexities of employment laws, managing payroll, or ensuring HR compliance, Acumen International is here to support you. Let us handle your global employment and HR needs, so you can confidently grow your business and succeed in Mexico and other international markets.

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