Employer of Record in Bahamas

Guide to Hiring Employees in Bahamas

Your guide to hiring employees in Bahamas, covering the employment landscape, employer of record responsibilities, working customs, and local labor laws.

Hiring Employees In Bahamas
Employer Of Record In Bahamas

Capital City

Nassau

Currency

Bahamian Dollar

 (

$

)

Timezone

GMT -5

Payroll Frequency

Tax Year

Employer Tax

Languages

English

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How to Hire Employees In Bahamas

Hiring in Bahamas for the first time can be overwhelming, especially when navigating unfamiliar employment laws.  Whether you hire independent contractors, set up a legal entity, or use an EOR service, understanding the local employment landscape is crucial for success.  Playroll’s comprehensive guide can help you get started if you're hiring locally or relocating a team member.

Companies can hire employees in Bahamas in the following three ways:

  • Setting up a local entity. Entity establishment reduces risk exposure and enables direct hiring, but can be costly and time-consuming – making it less practical for companies seeking quick and flexible solutions for hiring in Bahamas.
  • Partnering with an Employer Of Record. An EOR, like Playroll, is a third-party entity that serves as the legal employer of your international workforce which hires, pays, and manages compliance with Bahamas’s labor laws and tax regulations.
  • Hiring independent contractors. Hiring contractors gives companies a flexible, affordable alternative to hiring local employees, though it involves unique misclassification risks.

Good To Know

The Bahamas, an English-speaking nation in the Caribbean, is well known for its pristine clear waters and tropical climate.

Tourism has greatly contributed to their economy and employed two-thirds of their working population, while financial services come in second.

The country is also known as a tax haven, as the government does not impose taxes on income, capital gains, wealth, and on companies.

The Bahamas stands to be one of the richest countries in America.

Employment and Labor Laws in Bahamas

Businesses can only operate smoothly in Bahamas if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Bahamas below, to avoid any compliance issues.

Onboarding Process

We can help you get a new employee started in Bahamas quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment.

Employer of Record in Bahamas

An Employer of Record (EOR) acts as the legal employer for workers in Bahamas, taking on key responsibilities to ensure compliance with local labor laws and regulations. The EOR facilitates the hiring process for businesses that want to employ workers without establishing a legal entity in the country.

The employer of record in Bahamas is responsible for:

  • Employment Compliance: Ensure all employment contracts comply with Bahamas's labor laws and regulations, including proper classification of employees.
  • Payroll Management: Calculate, process, and distribute employee salaries in accordance with Bahamas's payroll laws, including deductions for taxes and social security contributions.
  • Tax Filing and Contributions: Handle the registration, filing, and payment of employer taxes and social security contributions to the relevant authorities.
  • Employment Contracts: Draft and maintain compliant employment agreements, detailing salary, benefits, working hours, and termination terms in line with Bahamas's legal requirements.
  • Benefits Administration: Provide mandatory employee benefits as required by Bahamas's labor laws, such as health insurance, pension contributions, and statutory leave.
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Payroll Management in Bahamas

Payroll Cycle in Bahamas

The payroll cycle in Bahamas is usually Monthly, with employees being paid as stipulated in employment contract.

Employment Taxes in Bahamas

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The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Bahamas tailored to your needs.

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Work Permits & Visas in Bahamas

In the Bahamas, work permits and visas are essential for employers hiring foreign workers. Employers must apply for work permits for expatriates, and the types of permits available include the Employment Work Permit for general employment, the Expatriate Work Permit for specialized roles, the Temporary Work Permit for short-term or seasonal jobs, and the Self-Employed Work Permit for foreign entrepreneurs. The application process involves submitting various documents, such as proof that no local candidates are available for the position, as well as meeting health and background check requirements. Employers must also handle the visa sponsorship process to ensure compliance with Bahamian immigration laws.

Annual Leave & Company Policies In Bahamas

Mandatory Leave Entitlement in Bahamas

The annual leave entitlement in Bahamas is 14 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

An Employer of Record (EOR) helps businesses manage annual leave, paid time off (PTO), and local holidays across the globe, including in Bahamas. By partnering with an EOR, companies ensure full compliance with local labor laws in Bahamas when it comes to annual leave and time-off management. EOR providers like Playroll offer platforms that simplify tracking and managing employee time off in Bahamas. By outsourcing this responsibility to Playroll, you can streamline leave management, ensure compliance, and free up time to focus on other business priorities.

Employment Termination and Severance Policies in Bahamas

Disclaimer

THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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ABOUT THE AUTHOR

Jesse Weisz

Jesse is an experienced R&D Analyst at Playroll, a leading Employer of Record (EOR) provider. With a strong background in data analysis and market research, Jesse specializes in identifying emerging trends and driving innovation in global HR solutions. She is an all-rounder, critical thinker and success-seeker (often inextricably linked to being a late-night tea drinker).

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FAQS

FAQs About Hiring In Bahamas

Questions and Answers

What Is an EOR in Bahamas?

An Employer of Record (EOR) in Bahamas is a third-party organization that legally employs workers on behalf of your company. The EOR handles all local employment tasks, including compliance with labor laws, payroll, taxes, benefits, and employment contracts. This allows businesses to easily hire talent in Bahamas without the need to set up a legal entity there, saving time and ensuring compliance with local regulations.

Can I Hire in Bahamas Without an Employer of Record?

Yes, you can hire in Bahamas without an Employer of Record, but this typically requires setting up a legal entity in the country. Establishing a local entity involves navigating registration processes, tax systems, and employment regulations. This can be costly and time-consuming, often taking between 4-6 months to enter a new market. An EOR provides an alternative by allowing you to hire talent quickly and compliantly without the need to establish a legal presence in Bahamas.

How Much Does It Cost To Employ Someone In Bahamas?

The cost of employing someone in Bahamas includes more than just their salary. You also need to consider mandatory contributions such as taxes, social security, insurance, and benefits. These additional costs can vary based on the role, location, and specific employment laws in Bahamas. When using an Employer of Record, there are additional service fees, usually charged as a percentage of the employee's salary or as a monthly or annual fee. This ensures compliance and covers administrative tasks.

What Is the Minimum Wage In Bahamas?

As of January 1, 2024, Bahamas's minimum wage rates are:

  • KYD per month.
  • Applies nationwide across all sectors.
  • Adjustments typically occur annually.

How Does an EOR Help You Run Payroll In Bahamas?

An EOR simplifies payroll management in Bahamas by handling all aspects of salary payments, tax deductions, and compliance with local labor laws for your international employees. The EOR calculates gross pay, deducts necessary taxes and contributions, and ensures employees are paid accurately and on time. They also manage year-end tax reporting and compliance filings, reducing the administrative burden on your team and minimizing the risk of errors or penalties.

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