During the global webinar A Guide to LATAM Payroll in 2021, sponsored by Global Upside, participants received a lesson on the importance of companies establishing a strategic payroll structure when operating internationally. The webinar also showed how these companies can navigate payroll complexities in Latin America (LATAM), specifically in the countries of Argentina, Brazil, Colombia, and Mexico.
During the webinar, Nathan North, Global Payroll Director at Global Upside, discussed ways of managing complex payroll regulations in LATAM, and creating foolproof LATAM payroll processes to maintain accuracy and compliance.
North explained the opportunities companies have by doing businesses in Latin America. For instance, the South American country of Brazil is considered one of the current five major emerging economies in the world. It has access to a vast consumer base and is home to an imports and exports industry that is easy to use.
Other topics discussed during the webinar included social security information, end-of-year requirements, payroll-specific mandatory registrations, and pension contribution requirements. North also took participants through the countries of Argentina, Colombia, and Mexico to talk about the benefits of doing business there.
Examples of some of the things that companies should know about each country, include the following:
- Prominent economic environment for international business
- Significant industrial sectors
- Access to trade agreements across LATAM countries
- Free market economy
- Multiple free trade agreements with the United States and the European Union
- Strategic business location
- Second-largest economy in Latin America
- 11 free trade agreements with 44 countries
- Direct link to consumer economies of North and South America
When it comes to establishing a foolproof LATAM payroll process, North said one of the most significant steps a company can take is to ensure that there is a cohesive strategy with the management team and that the lines of communication are always open.
“Raise awareness on internal and regional challenges,” North said. “Have these conversations. Sometimes they’re not the easiest to have. Have a change management process in place for each country, so that it will guide you through some of the items that we have discussed today.”
A Guide to LATAM Payroll in 2021 is currently available on-demand. Register for the free webinar today.
Do you like our content? Join the GPMI community to get free education and articles straight to your inbox!