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Payroll Service Process

Set Up Your Vessel for Payroll:

  • Send Luxury Yacht Group a copy of the ship's registry.
  • For KYC requirements, please submit a copy of the passport for the beneficial owner. (Depending upon nationality, subsequent information may be required about sources of wealth, but for US and EU passports, no further information is generally needed.)
  • We will generate a payroll services agreement which must be signed by an authorized representative of the owner entity.
  • Discuss crew seafarer contract defaults. We'll be happy to go over industry norms, and the pros and cons of each.
    • Employer (vessel's legal entity or one of the Luxury Yacht Group companies)
    • Vacation time accrual
    • Notice periods
    • Payroll frequency
    • Confidentiality clauses
    • Any vessel-specific customizations
    • Health insurance (optional)
    • Off-boarding requirements
  • Luxury Yacht Group distributes onboarding and off-boarding templates to the captain.
    • Crew Arrival Form
    • SEAs (Seafarer's Employment Agreements)
    • Crew Departure Report

Ongoing Payment Batches:

  • Luxury Yacht Group confirms upcoming payroll needs with the captain.
  • Luxury Yacht Group submits a funding request to the family office / owner.
  • Upon receipt of funds, Luxury Yacht Group makes global payments to crew with withholdings as required by applicable law.
  • Luxury Yacht Group provides crew paystubs.
  • Luxury Yacht Group answers ongoing captain and crew payroll questions.
  • Luxury Yacht Group provides employment verification letters upon request.

At Crew Contract End:

  • Luxury Yacht Group creates the departure report to facilitate the off-boarding process.
  • Luxury Yacht Group reconciles vacation and notice days to match the SEA.
  • Luxury Yacht Group processes final paycheck and tax documents as appropriate.

Fees:

  • One-time set up fee of $2,000 per client/vessel.
  • $65 flat fee per crew payment regardless of the payment method or destination currency (check, ACH, wire or cash).

Payroll FAQ:

  • Does Luxury Yacht charge fees for onboarding/off-boarding of any crew?
    • No. There is no additional fee charged for onboarding or off-boarding either permanent or temporary crew. The only fee 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 2x the typical 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 payments".
  • 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 is 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.
  • Is health insurance for crew members an additional cost?
    • Yes. We offer a range of health insurance options for both US crew and non-US crew on vessels within and outside of the United States at additional cost. As a large crew employer, our volume enables us to pass on very competitive rates and insurance plans that most yachts cannot access.
  • How long is the payroll services contract binding? Is there a termination penalty?
    • The payroll contract can be terminated at any time without penalty. We are confident of the quality of our services, and we do not lock our clients into long-term contracts.
  • I am a crew member, and I am not sure if I received the correct funds. What do I do?
    • Email payroll@luxyachts.com with a note explaining your question and one of our payroll specialists will confirm details.
  • I have questions about my paystub; what should I do?
    • Once you are onboard, if you have any questions or concerns about your paystub, please contact us at payroll@luxyachts.com, with the name of your vessel in the subject line. We'll be happy to help.
  • How do payments to international banks work?
    • We can pay via 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.
    • For Canadian accounts we ask for you to also send us the five digit Canadian transit number as a supplement to the normal details.
    • For Mexican accounts we ask for you to also send us the CLABE 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 W-2 for their tax withholdings. We also make state tax payments as required based upon the crew member's W-4 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 crew payroll company.
  • If Luxury Yacht Group employs non-US 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 a Cayman bank account. Foreign sourcing of income is important for non-US crew who work on yachts that enter and cruise US waters to comply with their B1/B2 Visa rules.
    • If the crew are US residents (including Permanent Residents/Green Card) they are paid via our Florida-based employment company.