Why should I outsource crew payroll processing?

The management and related payment of crew members working and living onboard yachts can be complicated. The jurisdiction of a yacht’s ownership, registration and homeport may often differ; the personal circumstances of each crew member in terms of where they are domiciled, where they might be resident and where they might be liable to pay tax and/or account for social security may be different.

If we then add the frequent movement of many yachts between different countries and continents, we can easily understand why yacht owners and captains are faced with a variety of complex jurisdictional issues in terms of employment law and payroll management for the crew who work onboard their vessel.

When dealing with payroll, accuracy and efficiency are key. Equally, it’s important to ensure that crew members are paid correctly and on time, making sure that it is in accordance with the terms of their employment contracts. This is a practical point as well as a legal one, as there’s little that will harm crew morale more swiftly and seriously than failing to be paid on time!

Moreover, managing payroll involves staying fully aware of when new members join the crew, when others depart and when individual circumstances change. Crucially, payroll processing involves deducting tax liabilities and contributions from gross pay before paying the salary – this means being aware of each member’s situation, current tax code, potential liabilities and contributions, as well as making accurate calculations and keeping detailed records.

Furthermore, payroll legislation is subject to change, and it isn’t always easy to understand or stay fully informed of your obligations as an employer. Failing to act when new rules come into force can prove very costly.

The complex and varied responsibilities that come with payroll administration are a key reason why many yacht owners and captains choose to outsource administration to specialist payroll service providers whose qualifications and industry expertise mean they can more easily ensure that processes are fully compliant.

With this in mind, our Group is proud to offer global solutions for the superyacht industry which will help manage yacht and ship crews effectively. Whether you are a superyacht owner, a captain or a yacht management company, we can relieve you of the complexities of yacht crew payroll providing a range of services to meet your needs.

In association with our partners we are able to provide solutions that ensures your crew are managed in accordance with all applicable legislation and in a cost effective and efficient manner. Whether you are EU or non-EU based, we will help you efficiently pay crew working onboard any yacht of any size, either operated privately or commercially.

We understand that private clients and family offices may not have access to the appropriate resources and expertise to run the payroll for the crew in full. Having an internal payroll bureau can be costly so we can assist providing the same level of service as an internal department at a fraction of the cost.

Our dedicated team will handle all aspects of your yacht crew payroll, making international payments across different jurisdictions for multinational workers and providing you with peace of mind that your crew will be paid promptly, that all necessary taxes will have been withheld in accordance with law, that all tax reports will have been completed accurately and submitted on time to the relevant Authorities.  Payroll journals will be kept up to date and accurate at all times and annual statement of earnings will be issued as required by the Authorities.

Outsourcing the crew payroll is a simple and cost-effective option. Outsourcing YOUR crew payroll to US is quick, secure and easy.

If you would like to discuss your payroll needs, please email Alex Beetham at alex.beetham@abacustrustgroup.com

Alex will also be attending the upcoming Monaco Yacht Show and will be happy to meet with existing clients and new contacts at or around the Show. Fancy a chat with Alex? Just drop him a line.