10/10/2023

How to pay a Turkish employee without having a bank account in Turkey with EOR (Employer of Record) ?

turkish employee eor

Paying a Turkish employee without having a bank account in Turkey is possible, and using an EOR (Employer of Record) service can be a good approach to facilitate this process. Here’s how you can go about it:

  1. Engage an EOR Service Provider:
    • Partner with an EOR service provider in Turkey. EOR providers specialize in employment-related services, including payroll processing, tax compliance, and HR management.
  2. Draft an Employment Agreement:
    • Create a legal employment agreement between your company and the Turkish employee. Ensure that it outlines all employment terms, including salary, benefits, and payment frequency.
  3. Transfer Funds to EOR Provider:
    • Transfer the necessary funds to the EOR service provider’s bank account. You will need to specify the amount required for the employee’s salary, tax deductions, and any other payroll-related expenses.
  4. Provide Employee Information:
    • Share the employee’s personal information, tax identification number, and other necessary details with the EOR provider.
  5. Process Payroll and Taxes:
    • The EOR provider will calculate and process the employee’s salary, make tax deductions, and ensure compliance with Turkish tax regulations.
  6. Payment to Employee:
    • The EOR provider will arrange for payment to the employee, which can be in the form of a check or direct deposit into the employee’s Turkish bank account, even if you don’t have a bank account in Turkey.
  7. Tax Compliance:
    • The EOR provider will handle all tax compliance matters, including filing and remitting taxes on behalf of your company and the employee.
  8. Reporting and Documentation:
    • The EOR provider will provide payroll reports and documentation to ensure transparency and compliance.
  9. Benefits and Compliance:
    • If your employee is entitled to benefits, such as health insurance or retirement contributions, the EOR provider can assist in administering these benefits.
  10. Exit Process:
    • When the employment relationship ends, the EOR provider will handle final salary settlements, tax compliance, and other necessary procedures.

Using an EOR service can simplify the process of paying a Turkish employee when you don’t have a local bank account. It ensures that you remain compliant with Turkish labor and tax regulations, and it also saves you the trouble of navigating the complexities of setting up a bank account or entity in Turkey. However, it’s essential to choose a reputable EOR service provider to ensure smooth operations and compliance with local regulations.

Azkan Group can support you in your Employer of Record (EOR) and payroll requests (also called Umbrella Company) in Turkey. We can manage your HR requests even if you don’t have a legal entity in Turkey.