How to Hire Remote Employees In 

Trinidad & Tobago

The Basics

Currency
Trinidad and Tobago Dollar (TTD)
Employer Taxes
Unknown
Payroll Frequency
Monthly
Official Language
English

Employment in 

Trinidad & Tobago

Hire Independent Contractors

Independent contractors or freelancers are self-employed individuals who provide services to companies as a non-employee. This is one of the most common ways companies tend to hire non-local designers, engineers, support reps, etc.

For legal and tax purposes, independent contractors are not classified as employees. They may work for multiple clients, set their own work hours, negotiate their pay rate, and decide how a job gets done.

For example, the IRS says that if an independent contractor or freelancer does work that can be controlled (what will be done and how it will be done) by an employer then they are, in fact, classified as an employee.

As you can imagine, hiring someone as an independent contractor versus an employee is a fine line to tread.

While there are benefits when you choose the contractor route, there are quite a few drawbacks to consider and you’ll need to weigh them carefully to determine the best fit for your company.

Benefits of Hiring Independent Contractors
Reduced overhead: Lower cost in expenses, payroll, benefits, and more.
Greater flexibility: Contractors can be brought on as-needed. If not a good fit, you simply don’t have to move forward with the contract.
Reduced legal risk: Contractors aren’t usually protected by employment anti-discrimination and workplace safety laws.
Disadvantages of Hiring Independent Contractors
Risk of Misclassification: Not only does this deny workers their proper protections, it can also result in steep penalties and damage to your company. If the IRS determines that employee misclassification has occurred, you will be liable for a percentage of the employees wages, FICA contributions, penalty fines, unpaid taxes, up to a year in prison, and more.
Lack of Control: Contractors are drawn to being independent because it gives them greater control over the work they perform and who they work with. Because they’re not employees, you can’t tell them what to work on and how it should be done.
Lack of Loyalty: Contractors come and go as-needed. Many companies hire contractors for short-term work, which makes it difficult to cultivate loyalty.
Increased Scrutiny: Using Independent Contractors typically leads to an increased risk of being audited.

Set up a subsidiary in 

Trinidad & Tobago

A foreign subsidiary is a company that operates overseas as part of a larger company who’s HQ is in another country.

Establishing a foreign entity is great for having an international presence and accessing new markets. Though, setting up a subsidiary in Trinidad & Tobago can be expensive, stressful, and time-consuming. It's not for the faint of heart.

To set up a subsidiary in Trinidad & Tobago, you have to:

  1. Register your business name and file articles of incorporation
  2. File for local bank accounts
  3. Learn and keep track of the local employment laws
  4. Set up local payroll
  5. Hire local accounting, legal, and HR people

If you're lucky, this process can take months. If you're not so lucky, it can take up to a year. And on average, it costs about $50k-$80k, all-in-all, to get setup. And that's just for Trinidad & Tobago.

Use an Employer-of-Record (EOR)

An employer-of-record (EOR) is a company that hires and pays an employee on behalf of another company.

An EOR is typically used to overcome the financial and regulatory hurdles that often come with employing remote workers.

Each country has its own payroll, employment, and work permit requirements for non-resident companies doing business in their jurisdiction. Meeting those demands can be a huge obstacle when it comes to hiring remotely.

At Panther, we help companies employ and pay people in over 160 countries, without having to set up a foreign subsidiary. Payroll, benefits, taxes, compliance, and more are all handled by us, at a fraction of the cost.

Outside of saving you months and tens of thousands of dollars, other advantages of using Panther are:

  • Ability to attract talented and motivated employees from all over the world.
  • Full legal compliance: There is no risk of violating local employment laws.
  • Transparency: Employees are still your employees. All the work, processes, operations and day-to-day business belong to you, the company, just like with any other employee. Panther just takes on all of the responsibilities, obligations and admin work related to your team's employment.
  • No risk of misclassification

Because you no longer have to set up your own subsidiary, you’ll save a ton of time and tens of thousands of dollars using Panther.

Paying Remote Employees

Paying employees in Trinidad & Tobago is not the same as paying workers in your own country. Employees have to be paid using Trinidad & Tobago's employment and payroll standards.

This means that you have to know, understand, and keep up with 1) fluctuating currency changes, and 2) local payroll and tax laws in the countries you’re looking to hire in.

Outside of the laws and regulations around payroll, there may be different conditions surrounding leave, overtime, termination, and more. As you can imagine, maintaining this kind of regulatory knowledge can be challenging. But it is crucial and necessary to follow local legislation.

After, you’ll have to determine the best way to pay your international employees. This can be done in a number of ways, including but not limited to:

Pay through a local entity

One of the most challenging (and expensive) parts of paying international employees is setting up the infrastructure to do so.

Before you start to run payroll, you have to register your company as the local employer in the country the worker resides in. As you can see in the “Set up a subsidiary” section, this is a multi-step process that can take up to a year and put you on your way to bankruptcy.

Work with an EOR

Outside of EORs acting as the full admin employer, many also provide remote payroll.

For example, at Panther, in just 1-click, you’re able to pay your entire global team, anywhere in the world. We send you an invoice each month, charge you in US Dollars, and pay your employees the same amount in their local currency.

We factor in currency fluctuations and use the mid-market rate plus any applicable fee passed on by our provider at cost at the time of billing.

Trinidad & Tobago

 Specific Information

Working Hours

A normal workday is 8 hours and a normal workweek is 40 hours.

Overtime

Overtime as any work in excess of 8 daily hours. For the first 4 hours of overtime, an employee is entitled to 150% of their normal hourly rate. Work performed after the first 4 hours of overtime is entitled to 200% of their normal rate. Any overtime after this is 300% of their normal rate.

Employees who work on public holidays and off days are entitled to be paid 200% of their normal wage.

Payroll Tax

Employer

Unknown

Minimum Wage

Minimum wage is TT$17.50 per hour.

Payroll

Pay Cycle

Wages must paid at least once a month.

13th Salary

Trinidad and Tobago does not require employers to pay a 13th salary.

Leave

Paid Time Off (PTO)

Employees with at least 1 year of continuous service are entitled to 2 weeks of paid vacation.

Public Holidays

There are 13 public holidays. Employees are entitled to paid time off for each of them.

Sick Days

Employees are entitled to 14 days of sick leave.

Maternity Leave

Pregnant employees are entitled to 14 weeks of paid maternity leave. During the leave, the employer is responsible for paying the employee 1 month fully and 2 months at half pay.

Paternity Leave

There is no law that provides paternity leave.

Parental Leave

There is no law that provides parental leave.

Termination

Termination Process

To terminate an employee, an employer must provide sufficient reasons as well as the proper written notice.

Notice Period

The notice should be presented in writing at least 45 days before termination.

Severance Pay

Severance is not required unless an employee has been made redundant or retired.

In cases where severance is required:

  • More than 1 year but less than 5 – 2 weeks’ pay for each year of service
  • More than 5 years – 3 weeks’ pay for each year of service

Probation Period

The first 3 to 6 months are typically designated probationary periods.