Employer of Record (EOR) services: Hiring employees in Paraguay

Hiring in Paraguay? Here’s how an EOR can help.

Paraguay, a landlocked South American nation, is a growing economy with a strong agricultural sector and a rising manufacturing industry. With a strategic geographic location and a dedicated workforce, Paraguay presents an attractive opportunity for businesses seeking expansion.

If you’re looking to expand your business into Paraguay, an Employer of Record (EOR) can quicken and simplify the process. An EOR allows you to hire and manage employees in Paraguay without the need to establish a local legal entity.

An EOR acts as the legal employer for your Paraguayan workforce instead, handling all HR, payroll, and compliance responsibilities. This enables you to focus on your core business operations while the EOR takes on the responsibility that your employees are compliant with local labor laws and regulations.

Why choose an EOR for hiring in Paraguay?

Small and medium-sized enterprises seeking a fast global expansion of their operations into Paraguay probably lack the the in-house expertise and resources to make such a pivot. They can benefit significantly from using an EOR. An EOR allows businesses to hire and manage employees in Paraguay without the need to establish a local legal entity.

By partnering with an EOR to make new hires in Paraguay, businesses can:

• Quickly hire and onboard top talent in Paraguay without the complexities of local labor laws.
• Streamline HR processes, including payroll, benefits, and compliance, to reduce administrative burdens.
• Ensure full compliance with Paraguayan labor laws and tax regulations, minimizing legal risks and penalties.
• Delegate HR and compliance responsibilities to the EOR, allowing you to focus on your core business activities.

An EOR acts as the legal employer for your Paraguay-based workforce, handling all HR, payroll, and compliance responsibilities. This enables you to focus on growing your business while the EOR ensures that your employees are compliant with local labor laws and regulations.

Choosing between an EOR and PEO in Paraguay

To rapidly expand into Paraguay, businesses have two primary options: an EOR and a PEO, a professional employer organization. Understanding the fundamental differences between EORs and PEOs is crucial for making an informed decision.

An EOR is a clear choice for any employer whose objective is to delegate all risk for compliance with employment law in Paraguay.

How to select the right EOR provider in Paraguay

When asking questions as to which EOR is best for your business in Paraguay, it’s essential to consider several factors. How does the EOR’s ability to comply with labor law in Paraguay fare compared to the competition? What is the EOR’s quality of support? Can the EOR even cover Paraguay? Choosing an ill-suited service can lead to compliance issues, avoidable costs, and a poor experience for your new hires.

Here’s what to look for:

• Legal compliance: The EOR you need will have deep knowledge of Paraguay’s labor laws, worker protections, tax regulations, and localized benefits. Look for a proven track record and ask about their experience with your industry. 
• Customer service: Does the EOR provide 24-7 support. Does it offer dedicated account managers for every customer? Multiplier offers human-first support all day, every day of the week with no bots. Every account has dedicated managers. 
• Transparent pricing: It is common for EOR solutions to offer inexpensive entry costs. Hidden fees or a confusing pricing structure become evident later. Make sure to determine your EOR’s associated costs before deciding to engage.
• Total cost of ownership: Finding the lowest price might seem like a priority, but it’s not always the end game. It’s a fact that paying less up front can translate to paying more in the end when the product proves to be defective. When choosing an EOR, be careful not to go with a bargain-basement option but instead investing in a product doesn’t compromise on quality regardless of whether you’re on a budget.

How EOR services work in Paraguay

Step 1: Send that contract over

Have the EOR send a locally compliant employment contract their way. Because of Multiplier’s automation of core HR functions, it takes only minutes to get up and running with new talent. Multiplier produces contracts fully compliant with Paraguayan labor law in five minutes or quicker. You will then have the ability to tailor the terms of employment, including job responsibilities, working hours, overall compensation, and termination conditions. Once the contract is ready, your EOR will send it in a secure manner for signature.

Step 2: Enhance compensation with competitive benefits

Want to include a benefits package that compares favorably to the competition’s? Spare yourself the work of vetting local vendors yourself. The EOR will make it straightforward to choose from several locally prevalent packages.

Step 3: Get all your documentation in order

The next step is to collect the new hire’s information for tax and banking. With an EOR like Multiplier, this will be collected by default — i.e., automated — to set up payroll. Multiplier will handle all necessary documentation directly, which results in a smooth process without hassles over paperwork. Onboarding employees in Paraguay may seem like a tall order, but in all reality, an EOR makes it pain-free.

Step 4: Run payroll for employees based in Paraguay

Processing payroll for Paraguay-based employees can be complex. It calls for an understanding of specific tax rates and contributions. Employing your new hires through an EOR like Multiplier results in accurate and timely salary payments. The EOR handles all local taxes, contributions, and withholdings. Plus, having Multiplier’s global payroll solution available for the work, you can take care of payroll for your entire global workplace from one place – instead of fussing with a slew of local vendors.

Step 5: Manage your employees and leave HR compliance to the EOR

Multiplier takes care of all conceivable elements of onboarding post-hire to ensure that new employees in Paraguay receive their pay the very first time and each paycheck thereafter on time and accurately calculated to comply with all benefits, taxes, and social contributions. Furthermore, if an employee in Paraguay needs to be terminated or leaves of their own volition, Multiplier takes care of all compliance for this, too.

Moving forward with Multiplier EOR in Paraguay

For any employer that must expand quickly into Paraguay, it is highly advisable to go with an EOR. The organizational agility, operational efficiency, and risk mitigation that come with the decision to use an EOR are too great to discount.

Multiplier’s Employer of Record (EOR) services constitute a full solution for expanding your workforce in Paraguay. Without the need to establish a global entity, you have the ability to hire and then outsource core HR tasks.

Multiplier supports a smooth process for hiring, onboarding, and employee management and provides locally compliant contracts, managed payroll and taxes, and a range of customizable benefits tailored to local standards.

In simple terms, no compliance snafus and a very positive employee experience.

Book a demo and see how Multiplier simplifies HR and compliance in Paraguay.