Payroll Services for Employers Based Outside of Germany

As you, the employer, are not located in Germany, you could actually just lay back and relax. You are not inside the Germany system. You have no rights or duties inside Germany. However, this will put a great burden on your employee. Your employee will have to take care of paying the health insurance and save the "payroll tax" from his income. This is not an insignificant temptation! When neither the income tax nor social security is paid, this is commonly called "tax evasion". We have developed an approach between what a German employer has to do and no service at all.

My services for payroll for foreign employers will typically include:

    • determining the tax advances as if on normal payroll,
    • determining the health insurance premiums,
    • determining the employer's co-payments,
    • opening a special escrow account for this one person,
    • receiving the gross salary and employer's co-payments into this escrow account,
    • after informing the health insurance, forwarding received funds to the relevant agency,
    • withholding the "payroll tax" in the escrow account,
    • forwarding net salary to employee,
    • forwarding social security premiums to the relevant authorities,
    • processing the monthly payroll for any and all employees,
    • providing you with a pay list,

 

Special services will be:

  • providing an escrow account for joint payments,
  • t.b.a.

Costs for Payroll

The costs for standard running payroll are generally € 20 / month and employee. The service of an escrow account will cost a setup fee of € 20 and a transfer fee of € 2 per month and employee.