Doing Business in Germany with an Employer of Record
Expanding your company into Germany is a great business strategy, but have you been wondering as to how to turn it into reality?
This article might be able to alleviate
some of your worries.
Though Germany’s labor laws are not
daunting, their multiple tax regulations are a tad difficult to navigate around
as a newcomer. Then comes the expense of setting up an office, registering your
company, and hiring employees. But all these can be addressed in a single step
with sharp foresight- by hiring an Employer
of Record Germany.
A German Employer of Record will not only execute payroll and HR duties, but will also draft employee contracts, hire workers, file taxes, and more, at an exceptionally budget-friendly rate in a small time window. While hiring a Germany Employer of Record, the following points should be kept in mind.
· Authentic background with a stable financial condition to not end up as a liability.· Experienced in handling legal aspects and tax regulations to avoid disputes and late fines.
· Transparent about charges with no hidden costing.
· Robust Data security and IP protection to ensure the safety of employee data and confidential company information.
· Positive customer feedback and excellent referrals add a tag of quality service and ingenuity.
An Employer of Record Germany offers the
following services.
- Compliance with labor laws and timely tax filings:
The employment laws of Germany are not
that complicated, but it is better to avail the services of an experienced
German Employer of Record who knows the ins and outs of labor laws and makes no
mistake in hiring quality employees. There are several taxes that you need to
be aware of. Employers usually collect the Personal Income tax of employees
based on their annual income and then pay them their wages. Business owners
have to pay corporate tax at a rate of 15%. However, in cases of taxes like
social insurance, health insurance, and unemployment insurance, both employers
and employees contribute.
- Execution of payroll and employee benefits:
From making timely payments, keeping a
check on minimum wage, issuing proper payslips, to making employees not work
more than 48 hours a week, paid leaves, 13th-month salary, and more,
a Germany Employer of Record executes each task flawlessly. Employers of Record
also provide National and local holidays according to the work calendar of your
German employees to maintain a flawless relationship of professionalism and
satisfaction between them and your company.
- Upholding a transparent and happy bond:
An employer of Record protects your
company from spending unnecessary amounts by providing expert guidance and
saves you from being scammed. By generating precise and punctual payroll along
with proper employee benefits, they guarantee the well-being of your employees.
This, in turn, upkeeps a beautiful and respectful bond between your company and
your German branch.
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