Employer of Record in US Virgin Islands

Guide to Hiring Employees in US Virgin Islands

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

Hiring Employees In US Virgin Islands
Employer Of Record In US Virgin Islands

Capital City

Charlotte Amalie

Currency

United States Dollar

 (

$

)

Timezone

GMT -4

Payroll Frequency

Tax Year

Employer Tax

Languages

English

How to Hire Employees In US Virgin Islands

Hiring in US Virgin Islands 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 US Virgin Islands 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 US Virgin Islands.
  • 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 US Virgin Islands’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 U.S. Virgin Islands have three main sectors of employment: mining, logging and construction.

The cost of living in the U.S. Virgin Islands is higher than on the U.S. mainland.

Employment and Labor Laws in US Virgin Islands

Businesses can only operate smoothly in US Virgin Islands 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 US Virgin Islands below, to avoid any compliance issues.

Employment Contract Requirements

Employers in the Virgin Islands must adhere to specific labor laws and regulations when drafting employment contracts to ensure compliance with local and federal standards. Key contract requirements include:

  • Clear outline of the job role
  • Salary
  • Benefits
  • Working Hours and Overtime
  • Paid Annual Leave
  • Probation Period
  • Notice Period for Termination

Onboarding Process in US Virgin Islands

We can help you get a new employee started in US Virgin Islands 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.

Probation in US Virgin Islands

In the U.S. Virgin Islands, a probationary period is not legally mandated for all employment situations. However, under the Virgin Islands Wrongful Discharge Act, most employees are subject to a 90-day probationary period.

Working Hours in US Virgin Islands

Standard working hours are generally 40 hours per week, with 8 hours per day being typical for most industries. Employers should also comply with federal and territorial labor laws regarding breaks, rest periods, and maximum working hours to ensure compliance and maintain a fair work environment.

Overtime in US Virgin Islands

Overtime is paid at 1.5 times the regular hourly rate for hours worked beyond 40 per week. Certain exemptions may apply based on job roles and duties.

Employer of Record in US Virgin Islands

An Employer of Record (EOR) acts as the legal employer for workers in US Virgin Islands, 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 US Virgin Islands is responsible for:

  • Employment Compliance: Ensure all employment contracts comply with US Virgin Islands's labor laws and regulations, including proper classification of employees.
  • Payroll Management: Calculate, process, and distribute employee salaries in accordance with US Virgin Islands'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 US Virgin Islands's legal requirements.
  • Benefits Administration: Provide mandatory employee benefits as required by US Virgin Islands's labor laws, such as health insurance, pension contributions, and statutory leave.
A collage of people in various careers

Payroll Management in US Virgin Islands

Payroll Cycle in US Virgin Islands

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

Employment Taxes in US Virgin Islands

Info Icon

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 US Virgin Islands tailored to your needs.

CTA Image showing employees in various countries across the globe
Employee Cost Calculator

Get an instant breakdown of the true costs of hiring in US Virgin Islands.

Calculate Now Default Icon Hover Icon

Work Permits & Visas in US Virgin Islands

Work permits and visas in the US Virgin Islands are essential for employers hiring foreign talent. The process involves initiating applications through the Virgin Islands Department of Labor (VIDOL) and adhering to federal immigration requirements via the US Citizenship and Immigration Services (USCIS). Key visa types include the H-1B for skilled professionals, L-1 for intracompany transfers, O-1 for extraordinary talent, TN for professionals under USMCA, and H-2B for temporary non-agricultural workers. Employers must navigate a detailed process involving proof of qualifications, labor certifications, and compliance with immigration laws while budgeting for application fees and processing times.

Annual Leave & Company Policies In US Virgin Islands

Mandatory Leave Entitlement in US Virgin Islands

In the Virgin Islands, government sector employees are entitled to 26 days of paid annual leave, while private sector employees have no statutory entitlement, with leave policies determined by individual employers.

An Employer of Record (EOR) helps businesses manage annual leave, paid time off (PTO), and local holidays across the globe, including in US Virgin Islands. By partnering with an EOR, companies ensure full compliance with local labor laws in US Virgin Islands 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 US Virgin Islands. 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 US Virgin Islands

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.

Author profile picture

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).

Back to Top

Copied to Clipboard

FAQS

FAQs About Hiring In US Virgin Islands

Questions and Answers

What Is an EOR in US Virgin Islands?

An Employer of Record (EOR) in US Virgin Islands 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 US Virgin Islands without the need to set up a legal entity there, saving time and ensuring compliance with local regulations.

Can I Hire in US Virgin Islands Without an Employer of Record?

Yes, you can hire in US Virgin Islands 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 US Virgin Islands.

How Much Does It Cost To Employ Someone In US Virgin Islands?

The cost of employing someone in US Virgin Islands 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 US Virgin Islands. 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 US Virgin Islands?

As of January 1, 2024, US Virgin Islands's minimum wage rates are:

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

How Does an EOR Help You Run Payroll In US Virgin Islands?

An EOR simplifies payroll management in US Virgin Islands 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.

Expand in
US Virgin Islands