- Overview: Hungary
- Global HR Compliance
- Global PEO and Payroll
- Work permit for hiring expats via PEO
- Contractor vs. Employee: which is better?
- Expand without a Company Set Up
Global PEO and Payroll in Hungary
Gone are the days when businesses could not expand internationally as quickly as possible because of the barriers to global business like intricate local legislations or cumbersome and costly procedures of setting up a foreign subsidiary. Global Professional Employer Organization (PEO) – a modern international talent engagement model has provided a new and better way to go global by hiring a workforce overseas.
What Is a Global PEO (Professional Employment Organization)?
A PEO (Professional Employment Organisation) is an international employment service provider that allows you to outsource all the legal and administrative hiring complexities and ongoing payroll for your empyees in foreign countries. With a PEO by your side, your company can focus on finding and hiring the best talent without worrying about administrative hassles.
A professional employer organization (PEO) allows businesses to outsource specific tasks and processes related to employee management without establishing a locally registered entity in the target country.
A professional employee organization (PEO) provides hiring, payroll, and benefits management services to businesses of all sizes. When you work with a PEO, it becomes your Employer of Record for tax purposes, which allows you to save time and money on HR and payroll functions.
What Is Co-employment Model?
In a “co-employment” arrangement, with the help of a Professional Employment Organisation (PEO), the PEO takes on many traditional employment responsibilities. The employer retains complete control of their employees’ day-to-day management and business.
Large companies are increasingly choosing to partner with a PEO, a global employment service provider, to help them balance their workload and simplify the international hiring processes. The role of the PEO is to manage all administrative HR considerations related to your global employment journey, including onboarding and offboarding, payroll, benefits, and tax administration in Hungary. Plus, you’ll have better control over costs and can avoid non-compliance risks. A PEO has deeper expertise, is familiar with current immigration, tax, and labor laws, can identify employment and tax law issues before they escalate, and can provide expert guidance and recommendations.
What Services Does a Global PEO Provide in Hungary?
If you’re looking for a streamlined option for hiring employees, testing markets, and responding to growing business needs in Hungary, PEO/ EOR services could be right for you. With Acumen International Global PEO Services, we take on the burden of compliance so that you can focus on your business. We employ your selected candidates legally, following labor laws, so that you can get the talent you need quickly and without sacrificing quality.
A Global PEO can provide strategic guidance and services tailored to your company’s needs. These services can help your business grow safely and effectively. Here are some of the things a PEO can do for you.
- Human resources administration, including payroll, taxes, and benefits administration; employee training and development; recruitment; compliance training; background or education checks; time-keeping services;
- Regulatory compliance assistance, including payroll tax law and reporting requirements;
- IP protection and offboarding;
- Hiring and HR compliance services, helping you navigate through local regulations and avoid prohibited HR practices, including discriminatory job listings, Illegal criminal background checks, misclassified workforce, inaccurate payroll, and tax payments;
- Human resource support;
- End-to-end talent management, including recruiting, onboarding, engagement, performance management, and termination (upon employer approval);
- A PEO works with legal counsel to ensure that the company is up to date on all employment law matters. This includes discrimination, wrongful termination, sexual harassment, whistleblower protection, non-compete agreements, severance agreements, and any other changes in the law.
Achieve 100% HR Compliance with a Global PEO in Hungary
It has never been more important for businesses to have a comprehensive compliance strategy. The volatile employment environment means that there are always new laws and regulations to worry about, and responding to them can be burdensome and overwhelming. To protect your company from costly penalties and reputational damage, you need to have a strategy in place that is aligned with regulatory requirements. Global workforce management should be tailored specifically to the needs of your business. Misalignment of benefits, hiring practices, and other HR practices can lead to costly penalties, litigation, and loss of reputation. A tailored approach reduces risks and enables you to stay ahead of the curve in an ever-changing employment market.
Acumen International can help you streamline the hiring process in Hungary with our customized all-in-one Express Global Employment solution. This unique solution can save you time and up to 70% on expansion costs, making it easy for you to extend your business into new markets without hassle. Our all-in-one solution includes comprehensive payroll, benefits, tax administration, and compliance support, making it a breeze to get started in new countries – no matter how complex the process may seem.
Professional Employer Organization (PEO) in Hungary: Comprehensive and Immigration Consulting
The immigration process can be a long, arduous one. Many employers become frustrated with it. The employer needs to fill out several forms promptly; the employee trying to secure employment will have to provide documents proving eligibility and authorization for the job. As there are several steps, it’s easy for something to be missed or overlooked.
There are many hoops that foreign employees have to jump through to secure a work permit. The process is often rigorous and difficult to navigate, especially for those unaware of the required documents and information.
That’s where Professional Employment Organizations (PEO) come in. The PEO partner can provide you with help and guidance through immigration. Acumen International PEO can play a bridge between the employee and the employer with their comprehensive immigration and compliance services across 190 countries.
A PEO (Professional Employment Organization) can oversee the entire process from start to finish and act as an intermediary – relieving both parties from having to worry about details such as paperwork and deadlines. This makes it easier for employees since they don’t have to worry about obtaining business visas and work permits for their workforce; the PEO company takes all the tedious paperwork. For employers, it relieves them from the headache of hounding their employees about missing information or securing visas in time; PEO companies handle all this on behalf of their clients.
The length of time it takes for an employee to receive a visa or work permit depends on several factors, including how quickly you can partner with an experienced and reliable global PEO company, what type of visa or work permit you need and what country you are coming from.
A Global PEO can be an affordable and efficient solution for businesses needing to employ professionals in multiple countries or locations. With our global network of offices, we can quickly bring new employees on board and ensure all staff is fully compliant with visa and immigration requirements.
Acumen International PEO solution can help you employ representatives from your home country to manage the launch of your product in the local market. You can also use our specialists to undertake projects of any complexity or duration. If it turns out that the market is not viable, you can easily withdraw without losing much money.
Global Payroll Administration and Tax Filing in Hungary
The challenge of managing payroll when operating globally is magnified when team members are not based in the company’s core country. When hiring through Acumen’s PEO services, workers are paid directly, and the employer has complete control over the global workforce.
Since 2000, Acumen International has served as an international PEO and payroll service provider in Hungary. With our solution, you can either expand your international reach or attract the brightest global talent for your projects while leveraging our company’s global infrastructure instead of setting up your own. No matter where you need a global employment solution, we hire the employees of your choice on our locally compliant payroll while transforming international payroll into a simple monthly invoice for you.
The advantages of using Acumen Global PEO include streamlined pay processes and lowered administration costs.
Acumen International PEO will:
- manage global payrolls
- calculate and file employee taxes
- provide in-country legal entity
- support your team with in-country administrative HR tasks
- pay out as single or group payments – seamlessly and promptly.
5 Reasons to Partner with a Global PEO and Payroll Service Provider
1. Save Time when Expanding to Hungary
When it comes to tax and compliance, outsourcing your international payroll to a professional employer organization can be invaluable. Working with a PEO can avoid tax and non-compliance risks while reducing the time and effort required to calculate overtime, paid time off, and employer taxes. Furthermore, by working with a global PEO, you can ensure that your international payroll is done correctly and on schedule, minimizing potential errors or problems.
2. Shared Tax Liability
Taxes are an inevitable part of doing business in Hungary. Payroll management can bring your attention to employees’ tax deductions and withholding notices. Tax compliance should be taken seriously. With payroll support from your PEO solution, you can rest assured that the tax or labor authorities won’t suddenly come knocking at your door for misfiling or oversight. Acumen International PEO and payroll service provider protect you from costly tax liabilities across multiple foreign jurisdictions, including Hungary.
3. Higher employee retention in Hungary
With PEO, you achieve higher employee retention, happier employees, and greater compliance with government labor laws. Your employees and independent contractors expect timely payments. Delays in payroll payment will cause employees to lose faith in the company and your management, prompting them to seek a new job. Delayed payments are guaranteed to increase turnover rates and morale among even the most loyal employees, who can become less productive as they await their due payout.
Acumen International’s global PEO and Payroll solution is designed for the most globally-distributed companies. We are committed to understanding your needs, protecting your brand, and providing convenient solutions that fit any budget.
4. Global Payroll Calculator: Accurate Global Employment Cost Estimation
Acumen International offers the Global Payroll Calculator to help businesses understand the compliance requirements for conducting business in a new country. Acumen’s research team tracks developments in 190 countries around the globe. It provides up-to-date data on local regulations related to tax, payroll regulations, benefits, hiring practices, compliance requirements, and other labor-related factors that impact an employer’s bottom line. This valuable information makes the Global Payroll Calculator an invaluable tool for businesses looking to expand internationally.
Global Payroll Calculator helps companies reduce labor costs by providing up-to-date information on hiring, compensation, and tax requirements. It is also an ideal tool for quickly locating employees in any country.
5. Easy billing and Centralized Payroll Management with a Global PEO
Failure to properly accommodate payroll in a business’ global expansion can have devastating consequences. Payroll is critical to any business, providing an accurate way to account for employees’ time on the job. A global PEO and payroll company can provide an integrated experience that reduces the time needed to onboard and offboard employees and the amount of friction involved in paying them. This is important for saving time and ensuring accuracy and compliance with tax and social security laws.
Mitigate Employee Misclassification and Non-compliance Risks with a Global PEO
Employing staff is risky. Employing someone as a contractor might be considered an employee by the tax, employment regulators, or courts. This could mean severe penalties and liabilities for your business. You can avoid or mitigate these risks using our global PEO in Hungary. If you are a service company that provides services to clients in different countries, using our PEO service could be an efficient way to reach out to your client base worldwide.
A global payroll solution in Hungary through Acumen International is also a great way to skip the hassle of setting up a legal entity or figuring out local labor laws. It allows you to focus on key business tasks. Moreover, setting up an entity might be expensive, not to mention its maintenance, which may even cost more.
With our global network covering 190+ countries, Acumen International has become your reliable global expert in local employment in Hungary and worldwide. With our deep understanding of Hungary’s labor rules and regulations, you can trust that your global workforce satisfies all local tax, social security, and immigration requirements.
By using our international employment outsourcing solution in Hungary, you can mitigate risks of employee misclassification and/or non-compliance. If you are a service company serving clients that employ a global workforce, you might want to use our global PEO service as an efficient tool to extend your offering to your clients.