Outsourcing Payroll
in Bulgaria
Get your managed software team with payroll, office, and procurement in Bulgaria in 2-3 months. We guarantee:
- Employer of Record serviceโno need to set up your own entity
- Tech contractorsโ management: payroll, taxes, documents, employee benefits, onboarding/offboarding
- Guaranteed legal compliance with local laws
- Individual account management support
- 100% transparent & predictable pricing
Poland
Romania
Ukraine
Bulgaria
Mexico
Argentina
Chile
ColombiaYour Own Up-and-Running Operated Tech Team in Bulgaria
Seamless Payroll Outsourcing Experience in Bulgaria
2.5 years
is the average tenure of our hires
Cultural alignment
with your company values
Pricing transparency
no hidden or buy-out fees
Legal & compliance
and other needed operational support
Exceptional dedication
itโs literally your own team
Long-term partnership
shared responsibility & commitmentKey Things to Know About Outsourcing Payroll to Bulgaria
Payroll and taxes in Bulgaria (FTE)
What do outsourced payroll services in Bulgaria cover? Essentially, when scaling to Bulgaria, you entrust payroll management to a provider specializing in outsourced payroll in Bulgaria. When you hire under the full-employment model, your provider will help with the following payments:
- The employeeโs share of Social Security Contributions (SSC) amounts to 8.2% on top of the gross monthly remuneration of $5,000.
- The employeeโs share with a monthly gross salary of $5,000 would constitute approximately 15.6% of their gross income (including PIT and SSC obligations).
Payroll and taxes in Bulgaria (B2B)
The B2B model differs in that your team member, i.e. a contractor, is responsible for payroll and taxes. As a rule, personal taxes are levied on the income and are not mandatory for compensation by the company. Still, hereโs the breakdown.
In Bulgaria, personal income tax for sole traders constitutes 15%.ย
Social Security contributions include:
- Pension Fund Contribution: 14.8%
- Universal Pension Fund: 5%
- Health Insurance: 8%
As a result, the effective tax rate for an IT specialist with a monthly remuneration of $5,000 would amount to approximately 27% of their gross income (includingย PIT and SSC obligations).
Payroll processing outsourcing in Bulgaria
Payroll outsourcing services in Bulgaria cover key day-to-day tasks, such as:
- Payroll tax planning, calculation, and consultation
- Preparation and allocation of statements
- Preparation and submission of payroll returns to local authorities
- Statutory payroll reporting
- Team benefits administration
- Processing payments for the tech industry
Why is outsourcing payroll to Bulgaria efficient for businesses?
- It saves costs & time. Managing payroll internally requires your accountants to cover salary calculations of both in-house and outsourced development teams. Extra workload means additional hiring and staff training, not to mention that your payroll experts would have to learn the specifics of the foreign payroll management rules, labor laws, statutory regulations, tax systems, etc., to stay compliant. Thus, outsourcing payroll solutions can help you cut costs on payroll management for new team members. Plus, it frees up time for your internal team to prioritize core financial activities.
- It mitigates compliance risks. When hiring developers abroad, your tech business should follow all the local laws, especially regarding payroll and taxes. Cooperation with a local payroll provider can shield your company from legal issues and fines, as they know the ins and outs of the local tax laws, wage regulations, terminations, and compliance requirements and stay updated on changes.
- Itโs safe for your data. Payroll deals with sensitive employeesโ information like social security numbers, salaries, and bank details, which can make tech entrepreneurs reluctant to use payroll outsourcing services in Bulgaria. However, a trusted payroll firm prioritizes security, investing in cloud-based servers, data centers, and cyber security software. The result? Maximum protection from embezzlement, identity theft, and other risks.
- It allows for scalability. The tech companies looking to rapidly expand their development team abroad often have complex payroll needs. Using outsourced payroll services can help them handle fluctuations in employee numbers, benefit plans, and tax requirements, providing scalability without the need for extra internal resources or infrastructure. This approach has been embraced by notable tech companies like People.ai, BigCommerce, ThredUP, Sift, and Dotmatics when expanding development teams abroad.
Choosing a payroll outsourcing company in Bulgaria
- Qualification & experience. Choose a vendor with experienced payroll and legal professionals in the tech industry. Also, check out their case studies, client reviews, and testimonials for social security.
- Pricing structure. Consider a payroll outsourcing provider in Bulgaria with predictable pricing and detailed invoices to avoid hidden fees and, therefore, eliminate the risk of overpayment.ย
- Technology & security. Check if your payroll outsourcing company in Bulgaria uses modern payroll processing software that is reliable and capable of handling your payroll requirements. Additionally, make sure they apply data security protocols and encryption standards and comply with data privacy regulations to safeguard employee information.
- Guarantees. If your payroll outsourcing solutions company provides compensation for mistakes or missed deadlines, has outlined timeframes, and offers pricing transparency, this is a green flag to outsource payroll service in Bulgaria with them.
What is an Employer of Record?
Employer of Record (EoR) allows tech businesses to employ talented in-country experts without setting up a legal entity and receive all the needed operational support in one place.
This is the most viable way to legally employ A-players for your global expansion plans for the following reasons:
- You delegate the management of all the business functions, like employment, payroll, tax payments, and compliance, and donโt have to establish a legal entity.
- It saves you the hassle of outsourcing these operations to multiple vendors.
Better Than Just Outsourced Payroll in Bulgaria
Alcor is your tech expansion accelerator for global growth
- From 0 to 100+ engineers in one key talent pool
- Employer of recordโno entity compliant employment
- Comprehensive in-country support
- No buy-out or other hidden fees
- Your team from day one. Your management. Your culture.
Companies Scaling with Alcor
Alcor is a reliable partner that meets our hiring needs. We finally hired experienced software engineers in Eastern Europe with strong tech skills and business acumen. Account Managers are awesome!
With Alcor’s all-in-one solution, we got a software R&D office with 15 senior PHP devs and a compliant operational coverage. I really appreciated their transparent pricing structure and deep expertise.
We interviewed a lot of EoR platforms and companies, but Alcor was the only one that provides a combo package of EoR and Recruting offerings. Alcor helped us build a full stack team in 1.5 month.
We wanted to switch from our outsourcing provider, and Alcor has become really game-changing for us. Within a mere 6 months, we got a fully-fledged team of 30 engineers in our own R&D office.
Alcorโs R&D solution eclipses full-cycle recruitment, EOR service, and operational support for our offshore team. Their ‘all-in-one place’ approach is far more cost-effective than I could’ve imagined.
I value their commitment to going the extra mile. We evolved from an outstaff project into an independent company, and Alcor’s support was crucial. They hired and ondoarded 15+ professionals for us.
Thanks to Alcor, we hired four engineers and a designer that strengthened our team. Beside stellar recruitment, Alcor flawlessly handled our payroll. Their approach was seamless and swift.
Alcor closed our 4 QA positions in a month and more than doubled the team in a year! We chose Alcor because of their communication style, cost, scope of services, and ideas to help us be successful.
FAQ
1. Do we have to wait till the end of the financial year, or can we start payroll outsourcing at any time?
No, you donโt need to wait until the end of the financial year to outsource payroll services. Itโs possible to transition anytimeโentirely up to you. However, we do recommend starting at the beginning of a new pay cycle or quarter to ensure a smoother handover and minimize disruptions.
2. What payroll functions can be outsourced to Bulgaria?
Payroll outsourcing covers both payroll processing outsourcing and compliance. Processing includes management, tax planning, calculations, payments, and bonuses, while compliance handles statement preparation, payroll returns, and statutory reporting. The best part? You donโt need a separate compliance or payroll processing provider in Bulgariaโoutsource it all with Alcorโs model!
3. Can a new payroll outsourcing provider fix existing payroll errors?
Yes, a professional payroll and compliance outsourcing provider in Bulgaria can help fix the existing errors in your payroll process, but choosing the right one takes extra effort. Look for a provider with proven expertise, a strong track record, positive client reviews, transparent pricing, solid guarantees, and robust security measures.
4. How to switch to another outsourced payroll, PEO, or EOR provider?
Once youโve found a perfect payroll compliance outsourcing vendor in Bulgaria by evaluating them according to the factors that I listed in the previous answer, the next step is to discuss cooperation terms and sign an agreement. Then, you can create a transition plan and outsource your payroll processing to the new provider. Typically, professional payroll providers lend a hand. For example, fast-growing teams abroad may benefit from a comprehensive solution like Alcorโs software R&D accelerator.
5. Which model is best suited for tech companies: an outsourced payroll company, PEO, or EoR?
โโFor tech companies expanding their development teams abroad, cooperation with an outsourced payroll company may fall short, as they typically offer a limited set of operational services, i.e. only payroll processing outsourcing in Bulgaria. Instead, Professional Employer Organizations (PEOs) or Employers of Record (EoRs) are often more cost-effective and convenient.
PEOs work on co-employment terms, essentially leasing developers, while EoRs act as legal employers, leaving team management to you. Some EoRs, like Alcor, even offer full-cycle tech recruitment, ensuring a smooth new market entry.
6. Is it better to outsource payroll in Bulgaria?
Payroll outsourcing helps businesses cut costs, reduce compliance risks, avoid errors, and streamline payroll processes abroad. Itโs especially useful for tech companies scaling their teams internationallyโa payroll outsourcing company helps navigate local laws and get a seamless, hassle-free scaling experience.