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Payroll Service Process

New Vessel start up:

  • Send us a copy of the ship’s papers.
  • We will generate the payroll contract which must be signed by an authorized representative of the owning entity.
  • For KYC rules please submit a copy of the passport for the authorized representative signing the contract. (Depending upon nationality subsequent questions may be asked about the source of wealth but for US and EU passports no further questions are asked)
  • Discuss crew contract defaults.
    • Define employer… vessel or one of the Luxury Yacht Group companies.
    • Vacation time accrual
    • Notice periods
    • Health insurance
    • Payment frequency
    • Confidentiality clauses
    • Any vessel specific customizations
    • Off boarding requirements
  • Luxury Yacht Group distributes onboarding and offboarding templates to the captain.
    • Crew arrival form
    • SEA (Seafarer’s employment agreement)
    • Crew departure report

Ongoing payment batches:

  • Confirm payroll needs with the captain
  • Submit funding request to family office / owner
  • Make global payments to crew with suitable withholdings as required by law
  • Provide crew pay stubs
  • Answer captain and crew questions about payments
  • Provide employment verification letters

At crew contract end:

  • Create the departure report
  • Reconcile vacation and notice days to match the SEA

Fees

  • One-time set up fee of $2,000 per client.
  • $65 fee per payment regardless of the payment method or destination currency. (Check, ACH, Wire or Cash).

Payroll FAQ

  • Do we charge any fees for onboarding/offboarding of any crew?
    • No. There is no additional fee charged for onboarding or offboarding, either permanent or temporary crew. The only fee you pay is $65 per payment made.
  • Can I make a rush / emergency payment?
    • We are happy to make emergency payments on any normal banking day. All emergency payments outside of scheduled payroll will incur a rush fee of double the usual charge.
  • What is your usual payment schedule?
    • We run scheduled payroll batches mid-month and at month end. Any payments requested outside this schedule would be considered “unscheduled / emergency”.
  • When will the payment be in my crew’s account?
    • Crew normally receive their payments on the batch end date (as per contract) or before if the batch date was a bank holiday / weekend. We release payments the day before they are due in the crew accounts. Some international accounts may take two days to credit the funds to the recipient.
  • I didn’t receive the correct funds, what do I do?
    • Email accounts@luxyachts.com with a note saying what you were expecting to receive and one of our payroll specialists will confirm why we sent what we did. We only send what was approved by the employer and withhold taxes.
  • Is health insurance for crew members an additional cost?
    • Yes. We offer a range of health insurance options that you can sign up for. As a large crew employer, we receive rates and programs that most small yachts would not be eligible for.
  • Do you offer health insurance for yacht crew in the USA?
    • Yes, we have a range of health insurance plans available for worldwide healthcare including covering crew when in US waters.
  • Is the Payroll contract binding to a specific period of time?
    • No, the payroll contract can be terminated at any time with no penalty. We are confident of the quality of our services and don’t try to lock in our clients on punitive terms.
  • I would like to review my play slip, what should I do?
    • Once you are onboard, if you have any questions or concerns about your pay stubs please feel free to contact us on accounts@luxyachts.com.
  • Can you pay an Australian bank account?
    • Yes! We can pay to almost any bank account worldwide. For Australian accounts we ask for you to also send us the BSB number as a supplement to the normal details.
  • Can you pay a Mexican bank account?
    • Yes! We can pay to almost any bank account worldwide. For Mexican accounts we ask for you to also send us the CLABE number as a supplement to the normal details.
  • Can you pay a Canadian bank account?
    • Yes! We can pay to almost any bank account worldwide. For Canadian accounts we ask for you to also send us the five digit Canadian transit number as a supplement to the normal details.
  • Can you pay US Nationals with correct withholdings?
    • Yes! All our US crew are paid correctly and provided with an annual W2 for their tax withholdings. We also make state taxes as required based upon the crew member’s W4 address.
  • Can my US crew be paid with a 1099 as a subcontractor?
    • Yes! However, crew are rarely true subcontractors so our general guidance is to treat all crew as employees. Please speak with a payroll specialist for confirmation.
  • Do you employ the crew?
    • We can either act as your payroll agent with your company being the formal employer of record or we can employ the crew on your behalf through our Cayman Islands crewing company.
  • If Luxury Yacht Group employs the crew are their earnings considered foreign earned income?
    • Yes! If we hire your crew they are employed by our Cayman Islands entity and paid from that entity’s bank account. (Unless they are US Nationals / Green card holders in which case they are paid from our Florida based employment company) Foreign sourcing of income is important for crew who work on yachts that enter and cruise US waters to comply with their B1 visa rules.