Payroll Outsourcing in Germany

Germany Payroll Service

No matter where you need it, our team of local experts at GlobalPEO will manage all of your foreign payroll operations. We get it; coordinating payroll is challenging enough on its own, and can become a logistical nightmare once multiple languages, rules, and regulations are involved. We are proud to streamline the experience to guarantee compliance and make your global expansion into Germany a breeze.

Learn how Germany’s laws and regulations surrounding taxes will impact your hiring and payroll processes. 

Depending on the size of your business and your specific needs, GlobalPEO offers a variety of payroll solutions to make sure you’re covered with full compliance, no matter what. 

In order to set up payroll services in Germany, you will either need to set up a subsidiary of your own, or work with an International Payroll company like us here at GlobalPEO.

When setting up an employment contract in a foreign country, there are unique rules and regulations you must follow to ensure full compliance. Learn more about the specific terms that are required for all contracts in Germany. 

Germany Payroll Outsourcing Benefits

Simplified Payroll Solutions

We make managing payroll easy by handling all of the administrative and HR duties directly with the employee so you can focus all communication on the work itself. ​

Punctual Payment Delivery

From employee paychecks to severance and benefits, all payments are processed on-time and always delivered to your employees on the scheduled date.

Established Legal Presence

By having our own entity located in Germany, we have local HR gurus ready to ensure complete compliance with local legal, financial, and cultural regulations

Germany's Taxation Laws & Regulations

Germany currently ranks 114th in the worldwide rankings for ease of opening a new business. If opening a business or subsidiary of your own, we suggest hiring a local tax advisor to assist with the complicated tax filing laws and registering your company with full compliance to German Law. 

You will be required to the German Social Security System, which is consists of Health Insurance, Nursing Care Insurance, Unemployment Insurance, Pension Insurance, and Accident Insurance. 

Payroll Options in Germany

Depending on the size of your company, you can choose between a two primary payroll options to find one that best fits your needs.

Option 1 – Set Up Your Own Subsidiary

Large companies will sometimes decide to handle their foreign employee payroll process on their own. In order to do this, you will be required to set up a subsidiary, register your business in Germany, and have a deep understanding of the country’s taxation, withholdings, benefits, and other local payroll conditions.

Option 2 – Work With an International PEO

When you work with GlobalPEO, our Payroll solutions make things easy by handling all of the administrative and HR duties with the employee. This frees up your business and foreign employees to focus all of your communications on the work itself.

How To Set Up Payroll In Germany

Before you can begin hiring foreign employees, you are legally required to either set up an entity in Germany or work with an International PEO  If you decide to operate your employee payroll on your own, you will need the following documentation: Passport, Residence Permit/Visa, Tax ID number, social security number, and the employee’s banking details for electronic transfers. 

Entitlement & Termination Terms For Germany

Your employees working in Germany are entitled to certain benefits and termination notices that should be stipulated in their original employment contract. These conditions should include employee vacation time, sick leave, and additional entitlements that can be negotiated individually. 

The process of terminating employees working in Germany can be highly complicated.  If there is a “termination for cause,” then an employee may be dismissed immediately. However,  proving cause can be challenging as the German government often sides with the employee in the case of a dispute.

From providing quick and effective payroll solutions to creating great relationships with your foreign employees, GlobalPEO gives you a top tier International Payroll service at a value unmatched in the industry. With services starting at just $400 per employee, your business can enjoy the benefits of having an expert payroll team without breaking the bank.

Why Choose GlobalPEO?

Global expansion is a great step for your business – and now it’s easier than ever. Setting up your own entity in each country where you wish to operate can be expensive, complicated, and requires deep knowledge of the specific rules and regulations. Let GlobalPEO take care of everything. From International PEO & EORGlobal Payroll and International Recruiting  we deliver our exceptional services at an affordable price.