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Employ Candidates Compliantly in Andorra

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  1. Overview: Andorra
  2. Visa, Work Permit for Hiring Expats via PEO
  3. Global PEO and Payroll
  4. Global HR Compliance
  5. Expand without a company set up
  6. Contractor vs. employee: which is better?
  7. Global Payroll Calculator
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Are you looking to engage and pay offshore IT developers in Andorra?

Find out how you can make an informed decision on whether you should engage and pay employees or independent contractors using our free ‘Employee vs. Independent Contractor’ Checklist.

Designed to be used by companies engaging remote workforce in Andorra, the checklist is the best way to define why and in what cases companies should onboard new hires or convert existing contractors/freelancers into employees without missing any crucial aspects.

 

What Our Clients Are Saying?

I’d like to share my experience dealing with Acumen International company.

Speed & responsiveness: Very prompt in response from my first enquiry about converting contractors into employees to follow up questions.

Completeness of information: I like how detailed the estimates and the transparency makes us feel more confident in knowing where the money goes to.

Overall experience: I am pleased and impressed with how fast they respond to my enquiries. We can trust the company to employ the contractors we want to keep.

Quah Shen Dee,
People Success Officer

I always found Acumen International very supportive, professional and helpful. They pay salary on time and are always ready to sort out any issues that arise.

I must admit I truly enjoy my time as an Acumen International employee and feel like they care about me as an individual. I have my own dedicated manager that provides me with detailed explanations when it’s needed. Payments are always prompt and the entire team does its best to respond to any of my questions.

I highly recommend Acumen International to anyone that requires their services.

Andrew Yanchurevich,
COO


Hiring independent contractors can be a great way to save money on expenses like benefits, vacation time, and paid sick days. However, this also increases the risk of employee misclassification. The different rules and compliance regulations for employee classification across countries worsen this problem. You could face severe financial penalties if the government audits you and discovers a misclassification case.  Luckily, partnering with a global PEO or EOR in Andorra can solve this issue immediately.

The full-time employment of a foreign person in Andorra via a global PEO is an incredibly cost-effective way to gain access to a high-quality workforce. This is due to the PEO’s ability to provide in-country customer support and their deep knowledge of Andorran employment laws and HR compliance regulations.

The Benefits of Hiring Independent IT Contractors in Andorra

Businesses of all sizes should consider building and managing a global workforce. This can often be difficult, as different geographies present unique challenges. However, businesses can create successful global operations by studying these challenges and adapting global employment solutions.

Cost-efficiency

Contracting a qualified IT workforce can be a cost-effective way to run your business. However, as with any decision, there are pros and cons to taking on independent contractors. Ideally, contractors can be an amazing asset for businesses with international operations. Independent contractors are

Flexibility

IT contractors can offer businesses great flexibility in terms of work hours. Full-time employees typically have set hours during which they are available, but a freelance IT developer would likely have more flexible hours to offer. This allows businesses to be better situated to meet their needs and avoid gaps in global coverage. IT contractors who can work independently are good at adapting to the ever-evolving needs of their clients and typically cost less than full-time employees since you don’t have to pay taxes or social security for them. All of this makes them a perfect fit for companies making a global move and looking to save time and money.

Access to Unique Global IT Talent Pool

The changing IT talent landscape is a major challenge for businesses. Most leaders know that having the right IT professionals is critical to success, but putting that insight into action can be difficult – especially in a competitive environment. Finding and keeping the right and skilled IT employees becomes increasingly important.

Finding the best IT professionals is a limitation for businesses regarding full-time employees. However, with the right tools and strategies, you can easily convert your independent contractor IT professionals from any country to full-time employees in Andorra. PEO engagement provides plenty of options for onboarding skilled individuals and avoiding any limitations on your workforce.

Should Independent Contractors Be Hired Full-Time in Andorra?

Recently, there has been a lot of debate about the advantages and disadvantages of converting freelancers or independent contractors into full-time employees. An increasing number of companies in Andorra are facing a similar problem. Most companies shy away from converting independent contractors into full-time employees as they are worried about the liability of hiring someone as a full-time employee. They need to fill positions but do not have the budget or staff to hire more full-time staff members. 

Companies hesitate to convert independent contractors because of the payroll and tax burden. Many cof them fear converting independent contractors into full-time employees would be too costly or time-consuming.

But this fear overlooks that such companies already spend up to 12% of payroll costs on non-covered benefits for independent contractors. This can be avoided by hiring them permanently or granting them the same benefits as other full-time staff members.

Also, the Andorran tax and labor authorities are cracking down on businesses that misclassify their workers. You could face stiff penalties, including a lawsuit if caught misclassifying your workers.

However, there are many reasons why converting a freelancer to an employee can be a smart move for your business. Here are five of them.

6 Benefits of Hiring & Payrolling Full-time IT Employees Over Independent Contractors via PEO and EOR 

1. Employment Compliance & Cost Control in Andorra

Acumen PEO can help you streamline global employment and eliminate all legal and compliance complexities associated with expanding into Andorra. Engaging and paying foreign talent full-time via a global PEO solution is about 30% cheaper than engaging in-house.

PEO engagement can help you save up to 50% of the costs associated with working through your entity. PEOs can offer a wide range of services and benefits that can help you streamline your business processes and reduce expenses.

2. Benefits Administration

Employee loyalty can be increased by up to 47% when using full-time employment to retain talented and successful employees. Freelancers who enjoy benefits such as paid leave or a company car often work harder than those without these perks. This is because they are motivated to do their best and feel appreciated. When offered a permanent position, they will bring their considerable skills and experience to your business, making it even more successful.

3. Expert Guidance on Employment Law in Andorra

If you’re looking for a quick and easy solution to help with your tax compliance challenges, a Global Employer of Record (EOR) or PEO arrangement could be a great way to go. With the help of your global PEO partner, you can quickly test out the Andorran market and then cancel if you decide it is not right for you. But make sure to understand all of your UK corporate income tax requirements before signing on the dotted line!

The benefits of using an official foreign employment service are clear. PEO partners with you to handle all of Andorra’s HR, risk, and compliance aspects. This way, you can focus on growing your business instead of navigating these complex waters alone. You can ensure your operation progresses smoothly by eliminating the risk of legal, financial, and business issues with a Global PEO partner. With just a few employees, starting in the United Kingdom is easy – so go ahead and explore this amazing country!

4. Employee Misclassification Risk Prevention in Andorra

The Employee Misclassification risk becomes even greater when a business owner hires independent contractors — who are classified as self-employed rather than traditional full-time employees. Businesses may hire independent contractors to save money on expenses normally covered for full-time employees: benefits, vacation time, and paid sick days. While this may save you money upfront, it also increases indirect costs: you’ll have to do more paperwork at tax time and pay steep penalties if the government audits you and discovers a misclassification case. In addition to severe financial repercussions, having an untrained staff of independent contractors means less productivity due to a lack of training and supervision.

Global companies are increasingly at risk of employee misclassification and the possibility of legal action against their organizations. A PEO can help you to enhance your HR compliance and avoid these risks by providing on-site customer support and in-depth expertise in local labor law and tax and compliance regulations. Acumen IInternational’sin-country managers will speak your language, making it much easier to employ legally, onboard, and payroll your globally distributed teams of professionals; you will save time and money with less need for recruitment or training.

5. Global Mobility and International IT Professionals in Andorra

At Acumen International, we offer expert guidance on all aspects of global mobility and immigration support. Our team of experts can help make your IT professional’s relocation as smooth and easy as possible. We will support you through everything, from knowing the tax and social security obligations in Andorra and their home country to obtaining business visas and work permits. And we will even help you set up a payroll administration so that everything is handled tax and social security compliantly in Andorra.

6. Permanent Establishment (PE) Risk Prevention

When expanding overseas, global employers must also consider the risk of creating a Permanent Establishment (PE) in the foreign country. A PE is a fixed place of business that is deemed to have a taxable presence in a foreign country. Creating a PE can result in additional tax liabilities and compliance obligations.

Using a Global EOR can help prevent Permanent Establishment risk by ensuring the company is not creating a taxable presence in a foreign country. The Global EOR acts as the employer of record, handling all payroll and benefits administration. This allows the company to focus on its core business operations and avoid creating a PE in a foreign country.

The Case of an IT Freelancer You Most Certainly Want To Avoid

Here is the litigation you would want to avoid… One American company worked with a Slovakian IT freelancer for approximately three years. The American HR director decided to contact Acumen International to employ this freelancer so that they would be in compliance with labor laws and avoid future misclassification issues.

The finance department of this US company did not approve of our offer to employ the Slovakian freelancer as it seemed higher than what they were currently paying the freelancer. An employee misclassification case did not seem imminent, so they decided not to act.

Half a year later, the same company contacted us to employ a Slovakian freelancer. Our offer got approved, but the freelancer refused to sign our employment agreement. In this half-year, the relationship between the freelancer and the US company went sour. The freelancer decided to go to the labor authorities instead. We never heard the ultimate verdict, but from communication with the HR director, we understood that they risked owing social security taxes, vacation, severance payment, and additional fines totaling about seventy thousand euros.

More benefits of hiring full-time foreign employees vs independent contractors in Andorra

  • Engaging and paying foreign talent via a global EO solution is about 30% cheaper than engaging in-house
  • Saves around 50% costs compared to working and paying through your own entity
  • With the help of employment, employee loyalty grows by 47%, which is why you can retain the top minds long-term
  • Official foreign employment eliminates 95% of legal, financial, and business risks. Also, using this service you can get the flexibility and take up more projects of different duration. You can start a bare-bones operation in Andorra with just one or a couple of employees and easily add any headcount as you move along.
  • To make it easy for you to choose between the two options, we have designed our ‘Employee vs Independent Contractor’ Checklist

Download your free copy of
the ‘Employee vs Independent Contractor’ Checklist

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