Germany Payroll Services

At Bradford Jacobs, we navigate the administration of the German payroll system for you. We do the work, so you do not have to.

Germany Payroll

When expanding into a new country, you may encounter some challenges regarding payroll, but allow us to take the reins and answer any of your questions and concerns with our trusty guide on payroll for Germany.

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How We Can Help You

At Bradford Jacobs, our Employer of Record (EOR) platforms provide reliable solutions for companies wishing to establish their presence in the German economy. From the first steps of setting up operations to ensuring compliance with the local payroll laws and regulations, we offer dedicated Germany Payroll solutions that can be personalized to your requirements.

We aim to make global expansion easy. At Bradford Jacobs, we navigate the administration of the German payroll system for you, and we also make the returns and associated payments for income tax and social security contributions directly from our payroll system to the local tax authorities. We do the work, so you do not have to.

Businesses in Germany have access to a variety of payroll options, depending on their needs:

Remote payroll – Businesses may choose to operate under a single payroll system for all employees, by adding employees in Britain to your parent company’s payroll. However, employees in Germany have to operate under different regulations, which can cause confusion.

Internal payroll – You may also operate payroll out of your subsidiary, especially if you are committed to growing your company’s presence in Germany. However, this does require hiring a dedicated HR staff that understands the local employment and compliance laws.

Germany payroll processing company – If you are keen on outsourcing, working with a German payroll processing company will help in your payroll process – but not compliance.

Germany payroll outsourcing – An option that solves both payroll and compliance needs – working with a company like Bradford Jacobs. We can handle both your payroll and compliance for all your employees in Germany. We take the stress of administration off your shoulders so you can focus on what you do best.

In Germany, payroll regulations change frequently, and corporation may risk penalties or sanctions if they do not comply. Bradford Jacobs’ payroll services provide what you need – ensuring you stay up to date with the rules. We make filings and associated payments for wage tax and social security contributions directly from our payroll system to the relevant authorities. Our role includes:

  • Registering with the German Tax Office
  • Registering with the Social Security Organization (Sozialversicherungen)
  • Creating employment contracts and ensuring their compliance to local employment laws
  • Calculating employees’ monthly salary and sending them their pay slips
  • Researching for any available tax incentives
  • Corresponding with the involved parties
  • Submitting employees’ or employer’s wage tax returns and national insurance forms
  • Creating and submitting your company’s annual accounts, administration, and year-end statements
  • Creating payment schedules for wage tax, national insurances, and net wages
  • Ensuring proficient personal income tax returns for you and your employees
  • and more!

It is easy to see why outsourcing payroll a popular practice for many employers in Germany. It saves money, time, and guarantees that your employees are paid, tax returns are filed, and social security obligations are fulfilled in full and on time. Bradford Jacobs provides the complete service to remove the anxiety and stress from your administration.

The requirements for setting up payroll in Germany will depend on how you establish your presence in the country. If you would like to set up your business as a subsidiary, you will need to have your subsidiary established first – but this can take some time, depending on where you incorporate as well as the entity type you choose.

To start processing payroll in Germany, you will also need:

  • An employer tax number
  • An employer company number with the Employment Agency (Betriebsnummernstelle)
  • Statutory accident insurance (Berufsgenossenschaft)
  • Registration for VAT
  • A local bank account
  • A File Transfer and Access Management System (FTAM)

These registration processes can take up to six weeks. It is not mandatory for subsidiary companies to have an in-country bank account, though this is advisable. Companies with local bank accounts can benefit from reimbursements from the government or tax authorities.

Payroll should be set up by the employer to make employee payments through a File Transfer and Access Management (FTAM). This enables the employer to authorize bank-releasing payments to all employees, including health and social insurance.

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