Employ Candidates Compliantly in Hungary

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  1. Overview:Hungary
  2. Global HR Compliance
  3. Global PEO and Payroll
  4. Work permit for hiring expats via PEO
  5. Contractor vs. Employee: which is better?
  6. Expand without a Company Set Up
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Employer of Record (EOR) in Hungary

What Is an Employer of Record?

A Employer of Record is a third-party expert global employment contracted by a client company to provide fully compliant international employment services. This means that the Employer of Record assumes all the core responsibilities of an employer as specified under the applicable laws in a specific country or a set of operations. An Employer of Record is generally responsible for payroll and benefits administration, ensuring that all necessary tax withholding or deductions are made, and meeting other compliance obligations of employers in a particular country of operations. Employer of Record solution is usually more cost-effective and compliant than setting up a local legal entity or subsidiary overseas.

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What Services Does an Employer of Record (EOR) Provide?

An Employer of Record Can Handle Tax Reporting in Hungary

The Global Employer of Record is a risk-free and compliant tax reporting solution allowing employers to comply with tax obligations in multiple local jurisdictions. The Employer of Record is a strategic alternative to setting up local entities and paying local employment taxes and charges (payroll tax, social security contributions) in multiple countries worldwide. The onboarding of your international employees via EOR engagement takes simple steps; in most cases, it can be achieved within a couple of days, with no local entity setup costs and compliance risks.

Payroll Administration with an Employer of Record (EOR) in Hungary

The Global Employer of Record processes the payroll across your multiple jurisdictions, which includes managing necessary tax withholdings and deductions, mandatory and voluntary benefits administration, expense reimbursements and PTO (maternity, paternity, and sick leaves) entitlements to ensure full compliance with tax laws in Hungary and company regulations. The payment method and cycle will follow the client company’s requirements to comply with Hungary’s legal codes.

Fully Compliant Social Contributions via Employer of Record (EOR) in Hungary

Compliance with payroll and social contributions laws in Hungary is complex and can be affected by changes in the law. The Global Employer of Record ensures 100% compliance as an international employment expert. Some tax issues, such as how to treat options granted to foreign employees, are particularly challenging. As an experienced compliance expert, an Employer of Record understands the ins and outs of payroll and social contributions law, leaving them immune to any non-compliance issues.

Employer of Record (EOR) in Hungary: Comprehensive Service Portfolio

With affordable packages and budget-friendly rates, Acumen International can offer secure, efficient global HR services to manage Global Payroll, HR & Benefits Administrations for businesses that need international talent but don’t have the resources or skills to handle it themselves.

Our full-service management solutions — from legal talent employment to benefits management, from compliance to payroll and taxation — are tailored around each client’s specific needs.

Acumen International’s unique and integrated approach allows us to offer a comprehensive array of EOR functions, including:

  1. Processing Immigration requirements
  2. Visa applications & extensions
  3. Work permit sponsorships
  4. Streamline onboarding, benefits, payroll, PTO
  5. Local labour law compliance
  6. Audit-proof compliance requirements
  7. Employee benefit management
  8. Handling employment contracts, terminations, and compensation
  9. Processing medical insurances and benefits
  10. Payroll, including year-end tax statements
  11. Relocation services & housing
  12. Benefit management
  13. Special needs or requirements  
  14. Multi-country employment without limitations
  15. Handling contract worker and ex-pat workforce management
  16. Compliant employment or termination within 72 hours.

Avoid the Risk of Employee Misclassification with an Employer of Record in Hungary

Some companies may be tempted to avoid employing full-time employees and instead engage them as independent contractors. This can be risky, however, as if the tax or employment regulators or courts deem the true nature of the professional’s engagement to be employment, a company could have severe penalties and liabilities. For example, if an employee is considered an employee, an employer will have to back pay those workers’ social security and other taxes. The Employer of Record engagement helps reduce the risk of misclassification and avoid fines and penalties.

Employer of Record solutions can help businesses comply with labor law regulations that classify workers as independent contractors rather than employees. This can be a cost-effective and 100% compliant solution in industries where full-time would otherwise illegally be classified as contractors.

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Engage an Employer of Record to Hire in Hungary Today

Employer of Record (EOR) in Hungary: Legally onboard and payroll employees via Acumen

Acumen’s EOR global employment solution helps businesses overcome legal challenges by hiring and compensating your local and international workforce in Hungary on your behalf risk-free and cost-effectively. Our global Employer of Record solution is the perfect choice for businesses looking to reinforce their internal team with the expertise of talented Hungary-based professionals. Suppose you are searching for a reliable way to hire international talent or have already selected an exceptional local candidate to work remotely and comply with Hungarian law. In that case, Acumen’s EOR solution is your ideal choice.

Our Global Employer of Record (EOR) solution can help international companies like yours expand their global reach and engage the brightest global talent for your projects. You can trust Acumen International to help you manage your workforce in Hungary, ensuring full compliance with local employment laws. We can employ local citizens in Hungary, and through our Global Employer of Record, you can get the most out of your expatriate team.

Partner with Acumen International, and let us help you handle your global employment and HR needs. With Acumen, you can rest assured that all legal requirements are met for compliant hiring and compensating your local and expatriate employees in Hungary and 190 countries worldwide.

Reduce risks while expanding your business without establishing your legal entity in Hungary. Leave it to Acumen to hire and compensate your employees on your behalf, so you can focus on growing your business.

Trust us to handle the global employment and HR side of your workforce management in Hungary, so you are sure that none of these nuances is missed and that your employees are employed and payrolled properly and compliantly on your behalf.

Employ your Selected Workforce via Acumen Employer of Record (EOR) in Hungary

As a Global Employer of Record services provider, Acumen International helps businesses legally engage and pay their selected highly skilled professionals in Hungary.

Acumen International is a leader in global employment services with over 20 years of experience and is certified as a Professional Employer Organisation (PEO). Acumen International helps businesses manage their operations across borders through its innovative solutions, including Employer of Record (EOR) and PEO.

Typically, the employer owns the risk for employment taxes, wage compliance, and employee benefits for employees assigned to work in a foreign country. Acumen International’s Employer of Record (EOR) in Hungary allows employers to outsource these responsibilities while maintaining control over their global workforce. This allows businesses to retain ultimate authority over their workforce while having access to a trusted partner who can support them with payroll, tax, and employee benefits administration. Companies reduce costs by outsourcing payroll and tax administration and simplifying their human resources efforts.

Businesses hiring local employees should be prepared to pay competitive salaries to attract and retain the most qualified candidates. Acumen International serves end employers and service companies representing an international client as a global employment organization.

Acumen’s Global employment services are intended to provide our clients with professional assistance to meet their global HR needs, such as:

  • Global talent acquisition and retention
  • Global expansion to help you quickly enter new international markets without legal and HR compliance risks
  • Local support for international clients and their ex-pat employees

Acumen’s Employer of Record (EOR) offers an efficient and inexpensive alternative to direct hire in Hungary. Our employer of record solution allows companies to operate in Hungary and 190 international markets where we serve our clients without registering as a local business entity.

Acumen International offers a global PEO and payroll solution to take care of all payroll details while ensuring full compliance with Hungary’s in-country labor and taxation laws.

Spotlight on Hungary

Hungary is a country in Central Europe that joined the European Union in 2004. It borders Slovakia, Ukraine, Romania, Serbia, Croatia, Slovenia, and Austria. Hungary has not yet joined the eurozone and maintains its currency.

  • Capital: Budapest.
  • Official language: Hungarian.
  • Population: 9,728,337 (July 2021).
  • Labor force: 4.414 million (2020).
  • Local currency: Forint (HUF).
  • Minimum statutory salary: Hungary maintains a national minimum wage system. In 2021, within the EU member states, Hungary had one of the lowest national minimum wages, with a total of only 442 Euros per month as the absolute minimum employers are legally obliged to pay their employees.
  • Developing industries include food processing, pharmaceuticals, motor vehicles, information technology, chemicals, metallurgy, machinery, electrical goods, and tourism.
  • Export/import partners: Hungary has strong trading relationships with Germany, Romania, Italy, Slovakia, China, Poland, Austria, Czechia, Italy, and the Netherlands. Hungary exports cars, vehicle parts, packaged medicines, spark-ignition engines, video displays, and broadcasting equipment. Import commodities include integrated circuits and crude petroleum.
  • 13th salary: About 13% of Hungarian employees receive a 13th-month wage. It is not to be confused with the end-of-year bonus, based on personal performance and the company’s performance in the given year.

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