Global PEO and Payroll in Bahamas

Employers don’t typically hire in the Bahamas to build large teams. Hiring here is usually tied to specific needs, appointing a local representative, meeting licensing conditions, or employing a regionally based executive. The workforce is English-speaking, but limited in scale, and roles are often high-trust or regulatory-facing.

What matters is legal execution. Without a local entity, foreign companies cannot employ staff directly. All employment must go through a registered Bahamian entity, with correct payroll in Bahamian dollars and monthly contributions to the National Insurance Board (NIB), in line with the Employment Act.

Acumen International allows you to employ in the Bahamas without setting up a company. We act as legal employer on your behalf, handling employment contracts, payroll, and compliance across all obligations, including immigration, where required.

Legal Use of PEO and EOR in the Bahamas

In the Bahamas, the right to employ rests with locally registered entities that take full responsibility for contracts, payroll, social contributions, and, where relevan, immigration. There is no provision in law for shared or delegated employer status if the foreign company is not locally incorporated.

The Employer of Record (EOR) model is legally recognised and commonly used by companies without a Bahamian entity. It allows a third-party global employment solutions provider, like Acumen International to employ individuals on your behalf, handle statutory obligations, and act as the accountable party under Bahamian labour law. This includes managing payroll in Bahamian dollars, submitting monthly National Insurance contributions, and administering terminations in line with local rules.

By contrast, the PEO talent engagement model assumes co-employment between client and provider. This format may be workable where the client already has a registered Bahamian entity and simply needs HR and payroll support. But it is not a legal substitute for incorporation, and cannot be used to employ staff independently. For foreign companies without a presence on the ground, only the EOR model provides a lawful hiring route.

Payroll, Currency, and NIB Compliance in the Bahamas

In the Bahamas, all wages must be paid in Bahamian dollars (BSD) and disbursed at intervals no longer than one month. Employers are required to maintain proper payroll records and comply with strict contribution and reporting obligations under the National Insurance Board (NIB) regime.

NIB Contributions

Total social security contributions amount to 11.3% of gross earnings, divided between employer (6.65%) and employee (4.65%). These contributions are calculated on a weekly basis, with each “contribution week” defined as a seven-day period from Monday to Sunday. The full monthly total must be submitted to the NIB no later than the 15th day of the following month.

If deductions are not made and paid on time, the employer is fully liable. Arrears cannot be clawed back from future employee wages and must be covered in full by the employer, regardless of fault or administrative delay.

No Income Tax, But No Leniency Either

The absence of personal income tax in the Bahamas does not mean payroll is simple. HR compliance is tightly monitored, and enforcement extends beyond financial penalties, when immigration is involved. Companies employing foreign nationals without proof of up-to-date NIB contributions may face delays or denials in work permit issuance or renewal

Acumen ensures all payroll is processed locally, with proper wage records, payslips, and statutory filings. We calculate contributions based on current ceilings, file them on time, and retain documentation in a format acceptable to Bahamian authorities, protecting both employer and employee from exposure.

Note: All foreign nationals employed in the Bahamas must hold a valid work permit. Acumen provides full immigration support as part of our EOR service. For detailed information, see our separate guide on Work Permits and Expat Employment in the Bahamas.

Acumen’s Global PEO and Payroll Solution in the Bahamas

Acumen enables you to legally employ individuals in the Bahamas without setting up a company. We act as the legal employer of record, responsible for employment contracts, payroll, statutory filings, and ongoing compliance — while you manage the employee’s daily work.

What’s included

• Employment contract issuance: We prepare locally compliant contracts denominated in Bahamian dollars, aligned with the Employment Act and tailored to the role.
• Onboarding and registration: We coordinate the onboarding process, including bank account verification, employee registration, and enrolment with the National Insurance Board (NIB).
• Payroll processing: We calculate salaries, deduct employee contributions, and issue payslips. All payments are made in BSD, on time, and supported by proper records.
• NIB compliance: We calculate, remit, and file both employer and employee contributions. Submissions are made by the 15th of the following month, in accordance with NIB rules.
• Employment records: We maintain compliant payroll and employment registers, including wage history, leave, and contribution data, accessible for audit if required.
• Termination handling: We manage lawful terminations based on contract terms and statutory entitlements, including notice periods and severance where applicable.
• Immigration support: Where the role involves a non-Bahamian national, we coordinate the work permit process, from labour market testing through to application and renewal.

What’s not included

Acumen does not offer standalone payroll services in the Bahamas. Our payroll capabilities are delivered exclusively within a full Global Employer of Record arrangement, where Acumen is the legal employer.

When to Use Acumen’s Global PEO and Payroll Solution in the Bahamas

Hiring in the Bahamas is rarely high-volume. Most of the clients we support are managing role-specific employment needs tied to regulatory, operational, or oversight functions. Acumen’s solution is built for companies that need to employ legally without establishing a Bahamian entity, and require end-to-end support across payroll, compliance, and immigration.

Use cases we support include:

• Hiring a designated local representative to meet licensing, registration, or compliance requirements;
• Employing a regional executive or oversight role to manage Caribbean or LATAM operations from a Bahamian base;
• Maintaining a contractual presence for regulatory or client-facing purposes without local incorporation;
• Onboarding a key individual ahead of full entity setup or instead of forming a company entirely;
• Transitioning a contractor into full employment, particularly where immigration or tax exposure is a concern
• Replacing a non-compliant vendor where previous arrangements do not meet local employment law requirements

In each case, Acumen assumes the legal and compliance burden — from contract issuance to payroll and termination, while you maintain operational direction.