Employer of Record Puerto Rico
Skuad’s Puerto Rico EOR solutions can help you expand your business into the country without the hassle of setting up an entity worrying about compliance issues with the Puerto Rican employment laws and regulations. Engaging Skuad’s Puerto Rico EOR solution allows you to focus on managing your business while we take care of all your hiring, staffing and employee lifecycle management needs.
Lying in northeastern parts of the Caribbean Sea to the south of Florida is the Commonwealth of Puerto Rico. It is an archipelago resided mostly by indigenous Taino people. Puerto Rico has been part of the US since 1898, where residents can freely move from the island country to the US mainland. However, the archipelago is disenfranchised and is an unincorporated territory. Many works have happened on the island since the 20th century, thanks largely to the Puerto Rico Industrial Development Company and the US Government. As a result, the island country is a high-income economy, marked as a developed economy by the IMF. On the Human Development Index, the archipelago is ranked at 40.
If you are on your global development plan and targeting to enter Puerto Rico, it can do wonders for your business since the island country is one of the world's developed regions. In addition, there are various ways of setting up your business in the island country – you can incorporate a legal identity here or take the assistance of an Employer of Record in Puerto Rico. An EOR like Skuad becomes your HR partner, recruiting, hiring, onboarding, and training employees to work for your business on our payroll. It means that we are responsible for meeting the payroll taxation, HR administrative functions, and other compliances with the local labor laws in Puerto Rico for you to carry on your business hassle-free and seamlessly. Please book a demo with us to understand the scope of work and how we can add value to your business.
If you are keen to know more about our operations, book a demo today.
Puerto Rico at a Glance
Estimated Population: 3,285,874 (2020 Census)
Currency: USD/ United States Dollar
Capital: San Juan
The number of officially recognized languages spoken: 2
Languages frequently used: Spanish and English
GDP: USD 112.273 billion (PPP) (2021 estimate)
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Employment In Puerto Rico
Employment in Puerto Rico is highly regulated. The constitution provides different statutes, provisions, regulations, and judicial doctrines to cover every aspect of Puerto Rico's labor laws. Presenting a summary of the various subjects covered under the Puerto Rico employment laws.
Some other laws related to employment issues in Puerto Rico
Various clauses mentioned in the Puerto Rico Labor Laws
Holidays and Leaves in Puerto Rico
This was just a brief summary of the Puerto Rico Labor Laws. The entire gamut and scope are far more complex and intricate. Therefore, it can be challenging for a new business to cover all aspects and interpret the entire scope upfront. However, when an Employer of Record in Puerto Rico works on your behalf, hiring and recruiting employees and managing the HR domain for your organization in a 360-degree mode, things can be easier and more seamless than working it all out on your own. Skuad, beyond any doubt, is one of the best in this context. To get more details, contact our experts.
Contractors vs. Full-time Employees
The employment contract law in Puerto Rico differentiates between full-time employees and contractors differently. Therefore, employers could attract penalties if they wrongly classify employees as contractors or vice versa. Misclassification happens when business entities treat their employees as contractors and generally avoid all legal obligations. Full-time employees are eligible for various benefits like minimum wages, overtime pay, pension, health insurance, social security, etc., as per the employment contracts in Puerto Rico.
As per the LTFA, an independent contractor is one who:
- Has an employer social security or identification number
- Files his business' income tax returns
- Just like the employment agreement in Puerto Rico, there is a written contract with the contractor too.
- The contractor has the required permits and licenses.
- Proof of discretion over the engagement
Skuad is a leading EOR service provider assisting you in ensuring that your business works and operates in complete compliance with the employment contract law in Puerto Rico, thereby reducing misclassification risks and penalties. Call us today to book a demo.
Hiring in Puerto Rico
To hire employees in Puerto Rico, incorporating your business in Puerto Rico is mandatory. Alternatively you can work with a registered EOR like Skuad so that your entry in the Puerto Rico region becomes smooth and barrierless. HR is one of the most challenging domains for a new business entity, but an EOR can help tide and navigate through the HR spectrum seamlessly.
If you choose to establish your legal identity in Puerto Rico, you can take the help of professional hiring companies in Puerto Rico. Some of the top job portals in Puerto Rico are Indeed, CareerBuilder, Dice.com, and GRC Executive. But, hiring from these portals means that you can access credible resumes and applications from candidates, but the major work of hiring needs to be done by your HR department. Plus, your organization needs to work out the payroll, taxation, employee health benefits Puerto Rico, social security, etc. With Skuad, you have a trusted partner handling the legal compliances and HR activities so that you can work on growing your business. Request for a demo today!
Probation & Termination
Hence, the employer of record EOR offers end-to-end support in recruiting, hiring, shortlisting, interviewing, confirming, onboarding, preparing the employment contract, ensuring compliance with the labor laws in Puerto Rico for payroll, taxation, and benefits. In addition, the EOR handles the entire backend administrative work related to HR.
Skuad is one of the topmost employers of record companies in Puerto Rico, offering automated solutions powered by the latest technology and tools. We are the best solution provider for companies that wish to expand in Puerto Rico but do not want to incorporate a business there or are in a rush to launch products in the Puerto Ricon market and do not have the time for going through the incorporation processes. To get more information, speak to our experts today.
Types Of Visas In Puerto Rico
Puerto Rico work permit for foreigners
The employer must apply for a work permit in Puerto Rico when hiring foreigners as employees.
It is impossible legally to obtain a Puerto Rico work permit without a job offer. However, with Skuad by your side, you or your staff need to worry about arranging work visas and work permits because our centralized platform will do all that for you. Book a demo today.
Payroll & Taxes in Puerto Rico
Consider using the automated platform of Skuad for effective payroll outsourcing in Puerto Rico. Speak to our trained experts today for more information. Talk to us.
To start your business in Puerto Rico, you can start by incorporating a holding company in Puerto Rico.
There are various advantages of expanding your business in Puerto Rico. From enjoying low corporate tax rates to 100% tax deduction claims, you can benefit substantially. You also benefit from forming a holding company, international trade, asset protection, intellectual property, special purpose entities, and international trade. However, working as an incorporated entity can be tough and quite daunting in the country. To make use of exciting business opportunities in Puerto Rico, it is highly recommended that you work with a futuristic EOR like Skuad. While you strategize your business plans, we are here to take care of all payroll and admin-related tasks to ensure smooth business flow. Talk to us to learn more.
Professional Employer Organization (PEO)
Similar to the EOR, a professional employer organization in Puerto Rico will help you with hiring, payroll admin, taxation compliance, and other statutory compliances with Puerto Rico Labor Laws. However, in contrast to an EOR, a PEO is a collaborator and co-employer of your business. Therefore, it means that you need to register your legal entity in Puerto Rico to take the help of a PEO. An EOR, on the other hand, is a registered legal entity in Puerto Rico and takes care of all your HR needs independently. As long as your requirements are streamlined, Skuad’s unified employment platform can help you save money, time, and resources for smooth operations on this Caribbean island. Get in touch to learn more.
When entering Puerto Rico, it is wise to hire Skuad, one of the country's leading EOR service providers. Skuad is one of the leading employers of record service providers in Puerto Rico, offering end-to-end services that take care of all legal and functional aspects of your HR needs. Book a demo today.