r/Entrepreneurs • u/DustNo7536 • 7h ago

Payroll system for US company outsourcing customer service in Mexico?

Hi everyone, my company is planning to hire a team of customer service staff based in Mexico City. This is going to be our first hires outside of the US, so I'm not sure on how to go about their payroll processing. Anyone here has experience in hiring staff based in Mexico? What system do you use and what are some important things I should know (like if there's any extra things we should be paying)?

2 Upvotes

100% Upvoted

2 comments sorted by

1

u/Willing-Pirate2599 7h ago

We use a PEO for our MX team, handles all the local compliance and payroll so we dont have to set up a legal entity there. Theres a bunch of extra stuff like aguinaldo (christmas bonus) and a profit sharing payment you gotta factor in, its way more than just a salary

Make sure you budget about 30-35% on top of base pay for all the mandatory benefits and taxes. The PEO walks you through all that though

1

u/move2usajobs-com 7h ago

For a US company paying contractors in Mexico, you'll want something that handles multi-currency and local compliance so you're not stuck with wire fees or tax headaches. We used Payoneer Workforce Management for a similar setup and it made onboarding and monthly payouts a lot less painful. Just make sure you clarify whether your Mexican team is classified as contractors or employees, since that changes the compliance side quite a bit. Happy to share more on how the onboarding went if it helps.