Solutions for your business in Germany
We provide employment, and payroll solutions to support your ongoing as well as business expansion in Germany.
Employer of Record Services (EOR) in Germany
As the largest economy in Europe, Germany continues to be a popular destination for businesses to expand. We offer a wide array of professional solutions in Germany to help your business grow. Whether or not you have a legal entity in Germany, we will provide the customized solution your company needs.
We offer one-stop solutions to support your business’ HR and administrative needs. We have years of experience and therefore are fully knowledgeable of the constantly changing local laws and regulations in Germany. This way, you can focus on your core business needs without having to worry about complying with the local laws and regulations.
There are two options when expanding your business in Germany. You can either set up your own legal entity or you can use a Professional Employment Organization (PEO)/Employer of Record (EOR) which does not require a legal presence in Germany. An EOR or employee leasing solution is becoming more popular for small and medium-size businesses as it provides an easier and more flexible means of employment.
We will hire your employee on your behalf and assign them to work for your company full-time. This way, you do not have the burden of handling payroll, taxation, statutory benefits among other HR and administrative tasks. We will handle all these functions allowing you to focus on your core business needs.
Our service includes:
- Acting as an employer of record for your leased employees and assuming all associated in country liabilities
- Preparing and signing the employment contract directly with the employee
- Employee on boarding and off boarding process in compliance with local laws
- Complete payroll solution and statutory benefits administration
- Insurance cover for public liability
- HR consulting
- Personal income tax return for employees, if requested
Payroll & mandatory benefits Outsourcing in Germany
Payroll procedures vary from country to country. Therefore, it can be both time-consuming and expensive to establish an HR department to handle the payroll of employees.
This is why many companies are choosing to outsource their payroll processes. We will act as your HR department and handle all payroll calculations and procedures. We will offer a compliant customized payroll solution for your company which will ease the burden of navigating Germany’s payroll and taxation practices.
When working in Germany, it is the employer’s responsibility to withhold the employee’s personal income tax or Lohnsteuer from his or her salary each month. The German payroll practice follows a pay-as-you-earn (PAYE) system and is to be paid to the tax office known as Finanzamt.
Statutory benefits, also defined as fixed or mandatory benefits, are implemented by the government in order to increase an employee’s welfare.
In Germany, these benefits are referred to as social security. Our local experts will make sure your business is fully compulsory with all mandatory contributions in Germany. Germany’s social security scheme is comprised of four insurances: pension, unemployment, health, and long-term care.
It is compulsory that both employees and employers contribute to German social security and the employer is responsible for registering the employee with an insurance fund. The employer is also liable for the total payment and is responsible for withholding monthly contributions from the employee’s salary.
Our service includes:
- Registration of necessary company and personnel information for payroll calculation in the payroll software and system
- Monthly payroll processing
- Annual accounts, administration, and year statements