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So you want to hire someone in the Bahamas. Problem is, your company is located somewhere else.
If you’ve done some research, you’ve probably been told you should be using an Employer-of-Record (EOR). Why? Well, if your company isn’t located in the Bahamas, using an EOR can help you bypass the traditional obstacles to hiring full-time employees.
But there’s a catch: EOR solutions in the Bahamas are expensive—usually at least $500 per month per employee—and can take time to setup. And because you’re complying with a different set of labor laws, logistics and benefits can end up costing you lots of time and money. While they will save you time from setting up your own Bahamian entity, they’re rarely cheap or fast.
The good news? There’s another way to hire remote workers in the Bahamas, and it doesn’t involve forking out huge amounts of money for an EOR.
The solution: Hire your teammates in the Bahamas as contractors. If you’re hiring remotely and your teammates have autonomy, there’s a good chance you can make compliant contractor hires. You still have to use locally-compliant contracts, but the process is a lot easier, more affordable, and faster.
We built Thera to help you make contractor hires, in 150+ countries (like the Bahamas). So you can hire the people you want on your team, without paying thousands for an EOR. You can get set up in a couple of clicks—and you’ll only pay $49 per contractor per month.
It’s just as easy as it sounds. No catch. Here’s what Thera looks like vs. an EOR in the Bahamas:
Are you considering expanding your business to the Bahamas and hiring independent contractors abroad? If so, it's important to understand the legal and regulatory conditions specific to the country. One option to consider is using an Employer of Record (EOR) to help manage your payroll and compliance obligations. In this post, we'll explore everything you should know about using an EOR in the Bahamas, and why hiring independent contractors might be a better option.
An Employer of Record is a third-party service provider that acts as the employer for your workers in the Bahamas. This means that the EOR is responsible for managing payroll, taxes, benefits, and compliance with local labor laws. As the client, you maintain control over the day-to-day activities of your workers, while the EOR handles the administrative tasks.
The Bahamas has a complex legal and regulatory environment that can be challenging for foreign businesses to navigate. Here are some key considerations to keep in mind:
- Work Permits: All foreign workers in the Bahamas are required to obtain a work permit. The process can be time-consuming and requires extensive documentation.
- Labor Laws: the Bahamas has strict labor laws that govern everything from minimum wage to termination procedures. Failure to comply with these laws can result in fines and legal action.
- Taxes: Employers in the Bahamas are required to pay a range of taxes, including social security and national insurance contributions. These taxes can be complex and difficult to navigate without local expertise.
Using an EOR in the Bahamas can help mitigate these risks by ensuring compliance with local laws and regulations. However, there are some downsides to consider.
While using an EOR can simplify the process of hiring workers in the Bahamas, it can also be expensive. EORs typically charge a fee for their services, which can add up quickly. Additionally, you may still be responsible for providing benefits and other perks to your workers, which can further increase your costs.
Hiring independent contractors, on the other hand, can be a more cost-effective option. Contractors are typically responsible for their own taxes and benefits, which can reduce your administrative burden. Additionally, contractors can be hired on a project-by-project basis, which can be more flexible than hiring full-time employees.
We’ve got two pieces of good news for you. For one, if you’re hiring remotely, it’s unlikely you’ll misclassify your contractors. Many of the things that qualify people as employees, such as company equipment and set working hours, don’t typically apply to remote work.
Still, it’s helpful to have the comfort of knowing you’re not at risk for misclassification. That’s why, at Thera, we’ve launched Misclassification Assurance: so you can hire contractors abroad, worry-free. Learn more about hiring with Thera below.
If you’re hiring contractors, you’re probably spending too much time on their payroll, contracts, and tax documents. Which is why we built Thera, which saves you 90% the time you spend on contractor paperwork each month.
With Thera, you can compliantly hire your contractors in 150+ countries, onboard them in minutes, and pay them all at once (in a click). It’s global contractor payroll, finally simplified.
Sound interesting? Click here to book a demo and see the platform firsthand
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