Providing Yacht Crew Leasing & Employment while leveraging Cayman Island jurisdiction.
Over the years, I have watched as the complexities of managing yacht crew grew to be more and more intricate. Slowly, Yacht Crew Management began to take up the bulk of time at Fairport Yacht Support and other Yacht Management companies as Social Security and Tax laws evolved, and the MLC convention was put into place. It was at that time that an idea was hatched; develop a company that takes the liability away from the owner and puts it onto the company. Previously, crew were typically employed by the owning entity of the yacht with the Management Company acting as an agent for the payroll. Often the payroll was sent from US based bank accounts, promoting the potential of employment disputes to the US judicial system or the Jones Act. Non-US crew are also exposed to US immigration and Visa problems when paid out of, or into, a US based bank. Professional Yacht Crew has the solution. Professional Yacht Crew (PYC) Cayman morphed both concepts of traditional payroll and offshore accounts by establishing a new Segregated Portfolio Company (SPC) in the Cayman Islands. This company has no assets or links to any company or individual. That Segregated Portfolio Company (SPC) becomes the employer and leases the crew back to the Owner. This concept allows for the crew to be covered by US tax laws, MLC requirements, and be protected by the vessel’s P&I policy,whilst allowing the Owner to be protected from frivolous litigation and crew complaints. Professional Yacht Crew Leasing has been vetted and approved by the industry’s leading maritime Attorneys.
We look forward to offering you our one-of-a-kind solution. Best regards, Graeme Lord
+1-954-980-0902 gl@pyccayman.com
Testimonials from our valued clients
“PYC did such a great job for us….and relieved a lot of stress on me personally” - Captain 50M Yacht
“You turned a very dire situation into a very pleasant one” - Owner
We don't follow industry standards. We define them.
Background
Solution
The intricacies of employing crew has only been intensified as yachting has evolved. From the Maritime Labour Convention, to tax laws, to manning requirements. Professional Yacht Crew provides you with the international solution to employ your crew and give them the benefits they have earned yet mitigates your insurance liability.
Professional Yacht Crew is a Cayman Islands entity that is a multi-faceted alternative to traditional payroll services which would employ the crew. Under this structure the crew are employed through a Segregated Portfolio Company and leased back to the yacht. If your vessel is a commercial vessel, all of the legal requirements of the Maritime Labour Convention are provided to the crew including all crew health benefits, crew leave, monthly pay stubs and repatriation. Payroll is processed efficiently and timely from our Cayman office.
General Info
● Professional Yacht Crew has a dedicated staff in George Town, Cayman Islands and has full control of the business without subcontracting any of our responsibilities. Our procedures meet all the Maritime labor Convention (MLC) requirements along with the European General Data Protection Regulations (GDPR). ● PYC has a dedicated bank account with Cayman National Bank from which the crew are paid. Everything is administered through PYC in the Cayman Islands ● Cayman Islands is also the jurisdiction for any legal issues. ● PYC is added as additional insured under the yacht’s P & I insurance for which there is generally no additional charge. PYC assumes all responsibilities for the crew as the employer. In the event of a crew sickness, injury or fatality the crew medical insurance and P & I will respond, should that not be sufficient the PYC Segregated Portfolio Company (SPC) would be dissolved and the next PYC Segregated Portfolio Company (SPC) would become the employer. Creating a new Segregated Portfolio Company (SPC) takes about two days. ● Each Segregated Portfolio Company (SPC) is named by the order in which they are created – for example PYC1, PYC2, PYC3, which would be the crew employer on the crew agreement. ● PYC assumes the burden of Monthly and Annual reporting to the IRS. Each Segregated Portfolio Company (SPC) has their own dedicated IRS issued EIN and all crew subject to US taxes are issued W-2 and W-4s. All crew are treated as employees, as opposed to subcontractors, per the IRS 20 questions. We provide monthly, quarterly and annual IRS reporting as well. ● Professional Yacht Crew works closely with Fairport Yacht Support, who provides all other Yacht Management services from their US based offices.
The Implementation Process
1. Phase 1 is creating the Segregated Portfolio Cell (SPC). This takes less than 2 working days. Phase 2 is to have our Crew Compliance department set-up each crew member with a vessel-specific link to applicable forms and required templates. This link takes two days to 2. create, once the necessary and preferred document requirements are established. 3. Phase 3 is to collect documents required to establish a bank account. Including Cayman National Bank’s due diligence, this process usually takes from four to six weeks. We use our dedicated Escrow account to process crew payroll in the interim.
Crew Advantages
Highly Qualified and Verified Crew
Our PYC crew members are carefully selected through an exclusive, invitation-only process. All crew members undergo continuous training (including cyber) and come with top references.
Top Tier Medical Insurance
○ PYC is proud to offer our crew the best medical plans available through our exclusive partnership with Cigna’s International Employee Assistance Program. All PYC crew have access to the a wide variety of health benefits made accessible through our Cigna Wellbeing app that includes Global Telehealth 24/7.
Comparison between Traditional Crew Payroll and Crew Leasing
Liability
Jurisdiction Crew
MLC Approved
Crew Benefits
Safe Manning
Payroll
Company Location
Employed By
Traditional
Owner’s Insurance
Varies. Depends where Crew member files claims - leaving the owner’s liability open to countries with known high lawsuit payout
Fully satisfied as required by MLC and each country’s specific laws Fully satisfied as required by MLC and each country’s specific laws
Captain verifies
Standard accounting practices efficiently reported and paid punctually monthly
Varies
Owner
✔
Professional Yacht Crew
Cayman Islands
Company verifies before crew is hired and on board
Standard accounting practices efficiently reported and paid punctually monthly
Cayman Islands
Professional Yacht Crew and then leased back to Yacht Owner
✔
Fee Schedule Fee Schedule
Bank and Wire Template Setup fee to be charged at the initiation of the first Payroll Employment fee - Per Crew Member - A monthly Service Fee to be charged for Crew Administration, Payroll, and Management
$2,000 One Time Fee
4 to 7 Crew Members
$400 Per Month
8 to 16 Crew Members
$350 Per Month
17 to 25 Crew Members
$300 Per Month
26 to 40 Crew Members
$250 Per Month
41 plus Crew Members
$150 Per Month
New Hires - One time Setup Charge for each additional Crew Member Maintenance Fees - Annual Bank Account Maintenance fees to be charges on each anniversary
$150 Per New Hire
$1,000 Per Year
Strathvale House 2nd Floor 90 North Church Street George Town, Grand Cayman Cayman Islands
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