- Overview: Austria
- Work permit for hiring expats via PEO
- Global HR Compliance
- Global PEO and payroll
- Contractor vs. employee: which is better?
- Expand without a Company Set Up
Employer of Record (EOR) in Austria
What Is a Global Employer of Record?
A Global Employer of Record (EOR) is a company or service provider that hires employees on behalf of other companies and becomes the legal employer of record for those employees. This means that the Global EOR takes on all of the responsibilities and liabilities of being an employer, including compliance with local labor laws, payment of taxes and social security contributions, providing benefits, and managing employment contracts.
Global EORs are particularly useful for companies that are looking to expand into new international markets but do not have a legal entity or infrastructure in place to support hiring employees in those countries. By working with a Global EOR, companies can hire local employees quickly and compliantly without having to set up their own legal entity or navigate complex local labor laws.
In addition to handling the legal and administrative aspects of employment, many Global EORs also offer services such as payroll management, employee benefits administration, and HR support. This can help companies to streamline their international operations and focus on their core business activities while leaving the complexities of global employment to the experts.
Partner with Acumen Global Employer of Record, and let us help you ensure that your workforce is compliant and up-to-date across all jurisdictions.
Streamlining Your Global Expansion: The Advantages of Using a Global Employer of Record to Austria
1. Faster hiring a candidate in Austria
With the global economy shifting more and more towards technology, companies are looking for ways to keep up. One such solution is the EOR model, which allows companies to outsource work to distant locations without any overhead or bureaucracy. This is especially helpful for companies that need to fill positions quickly in multiple locations, as it eliminates the hassle of setting up local entities.
The EOR model can be an excellent solution for businesses that need to find and hire talented workers no matter where they are located. This can be especially helpful for companies with limited internal resources or infrastructure, as it eliminates the need to create an entity in each location. Additionally, the EOR engagement complies with global regulations, making it an ideal solution for businesses of all types looking for faster and compliant employment in Austria.
2. Test the Market with a Global EOR before Launching the Business in Austria
If you’re looking for a way to tap into the Austrian market, a global EOR might be the perfect solution. A global Employer of Record is an employee engagement where one company agrees to act as an employer for another company. This allows your company to test the waters without taking on all the associated risks and costs of establishing an entity in Austria. If things go well, the Employer of Record can arrange for its employees to work permanently from that location. So what are you waiting for? Start exploring this promising new market today!
The benefits of a Global Employer of Record (EOR) arrangement include:
- Cost savings. There are no additional expenses associated with setting up an entity or hiring staff until you decide it’s worth the cost.
- Increased flexibility. You can move quickly if necessary without dealing with lengthy lease agreements or other administrative matters that would slow down your growth plans.
3. Employer of Record: Avoid Expensive Fees and Long-Term Commitments
The Employer of Record offers a simple, low-cost solution for companies expanding their operations in a foreign country.
Companies can work with a local partner in their chosen country and utilize the services of an Employer of Record (EOR). This provides an alternative to setting up an entity or subsidiary, allowing companies to sidestep the administrative and financial burdens of establishing a legal entity.
The EOR (Employer of Record) will be responsible for all tax obligations and regulatory compliance requirements on behalf of your company in Austria. The EOR engagement also allows you to avoid additional costs associated with hiring local staff and other expenses such as office space and equipment rentals.
Partnering with an Employer of Record, you will retain complete control over your employees and business operations while benefitting from substantial cost savings and avoiding non-compliance risk.
4. Employer of Record: A Good Option To Getting Started in Austria Faster
An Employer of Record is an excellent choice for those looking to start working in Austria immediately. Using an Employer of Record, you can get started sooner than if you were waiting for your entity to become official in Austria. The Global Employer of Record will act as a legal employer of your workforce in Austria and handle payroll and benefits administration, tax filing, and all the necessary paperwork for your employees, making the employment process in Austria smoother and quicker.
Global Employment Services — Recruitment. Onboarding. Management. Retention. Termination
Compliance and legal guidance at every step of the Global Employment Journey. 24/7 local support.
2. Global Mobility
5. Payroll Administration
6. Working Time & PTO Processing
7. Benefits Administration
8. Tax Administration & Reporting
|Talent skilled in highly-specialized areas||Employee Work Visa and Work Permit sponsorship||Health checks||Employment Agreement drafting||In-country registration with statutory bodies||Working hours||Mandatory Benefits||Tax Reporting frequency and requirements;||Employment agreement termination:|
|Executive search||Dependent Visa||Criminal record checks||Compliant worker onboarding on your behalf||Day-to-day payroll management||Overtime||Health insurance||Employer taxes & contributions||Dismissal – by the employer|
|Contingency workforce||Visa extension||Background checks||Account setup in the payroll and HR system||Monthly pay slips or other pay frequency||Public holidays||Workers’ compensation||Employee taxes & contributions||Resignation – by the employee|
|Application for a sponsor license for a foreign national||Education checks||Employee data entry and records maintenance||Accruals||Annual leave||Unemployment insurance||Withholding tax||Termination by mutual agreement|
|Relocation assistance||Managing probation periods||Allowances||Parental leave||Voluntary Benefits||Local tax payments and reporting to local authorities||Notice period handling|
|13th and 14th salary||Sick leave||Share plans for executives||End of financial year reporting||Final settlement & severance payments|
|Additional leave||Bonuses & Equipment provision||De-registration with statutory bodies|
|Expenses reimbursement & business trip processing|
|Health insurance, dental treatment|
Payroll Management in Austria
Acumen International’s global payroll solution in Austria is the perfect way to avoid the hassle of setting up a local legal entity and dealing with complex labor laws. This solution allows you to focus on essential business tasks while Acumen takes care of all the payroll details. Additionally, setting up a local entity can be expensive, and maintaining it can be even more costly. With our global payroll solution, you can avoid these headaches and costs.
When setting up payroll in Austria, having an employment contract is a legal requirement in this country. It should have all the details of the employee’s responsibilities, taxes, compensation, perks, grievance and disciplinary procedures, and even termination and immigration requirements if required.
An employee offer letter in Austria should always have the salary and compensation amounts listed in local currency instead of a foreign currency. The legal needs for an employment deal in Austria are essential, and most such contracts are more comprehensive than the law demands. The provision of such an employment contract should be made per the recommendations of a Professional Employer Organisation in Austria.
Payroll and Tax Considerations in Austria
- There is no statutory minimum wage in Austria. However, collective agreements must stipulate a monthly minimum wage of at least EUR 1,500.
- Oral employment agreements are legal, but employers must provide a written employment summary with all essential aspects of the work.
- Employers must pay a severance allowance when a contract is terminated. During employment, the employer must pay 1.53% of the employee’s gross salary to a severance payment fund.
- The retirement age is 65 for men and 60 for women if they have paid insurance contributions for 180 months (15 years)
- There is compulsory social insurance coverage.
- Both employers and employees contribute to social security.
- Foreign workers who are not nationals of the European Economic Area (EEA) or Switzerland need a work and residency permit.
Maximizing Your Global Expansion Strategy with a Global Employer of Record in Austria
Here is a table outlining some common challenges businesses face when expanding globally and how Acumen Global Employer of Record can help address them.
|Complying with local labor and tax regulations in multiple countries||A Global EOR provider can ensure compliance with local laws and regulations, handle payroll and taxes, and provide HR support.|
|Lengthy onboarding and offboarding processes||A Global EOR provider can streamline the onboarding and offboarding process, saving time and resources.|
|Providing employee benefits in different countries||A Global EOR provider can help businesses navigate the complexities of providing benefits in multiple countries and provide access to international benefits programs.|
|Managing multiple global employment service providers||A Global EOR provider can act as a single point of contact for all employment-related services, simplifying the business process.|
|Lack of institutional knowledge in foreign markets||A Global EOR provider can provide local market expertise and support, helping businesses navigate cultural and business differences.|
|Ensuring proper immigration and relocation support for expatriate employees||A Global EOR provider can provide immigration and relocation support, including visa sponsorship and securing work permits.|
|Protecting intellectual property rights in foreign markets||A Global EOR provider can provide legal support and guidance on protecting intellectual property rights in different countries.|
|Dealing with business transitions, such as mergers and acquisitions||A Global EOR provider can help manage the HR aspects of business transitions, including converting contractors to full-time employees and handling employee offboarding.|
These are just a few examples of businesses’ challenges when expanding globally and how a Global EOR provider can help address them. By partnering with a Global EOR provider, businesses can focus on their core operations while leaving the complexities of global employment management to the experts.
Global Payroll Calculator
In today’s global market, companies are competing for top talent on a global scale. To make informed decisions about talent acquisition and develop a strong and cost-effective talent strategy, it is essential to have access to accurate and reliable compensation data across multiple countries. This is where the Global Payroll Calculator (GPC) by Acumen International comes in. GPC simplifies and streamlines payroll planning, providing greater visibility into the global employment tax and compliance intelligence and allowing you to know the exact costs associated with recruiting, developing, and retaining top talent.
- Make Better Talent Decisions: With GPC, you’ll gain valuable insights into the global talent market, allowing you to make informed decisions about talent acquisition and develop a strong and cost-effective talent strategy.
- Streamline Payroll Planning: GPC simplifies and streamlines payroll planning, helping you to know the exact costs associated with recruiting, developing, and retaining top talent and providing greater visibility into and a better understanding of the global employment tax and compliance intelligence.
- Optimize Global Mobility Programs: GPC can help you plan and optimize your global mobility programs, enabling you to attract and retain talent in a competitive marketplace and combat global employment overspending.
- Benchmark Global Pay Practices: GPC allows you to explore and benchmark pay practices in the global marketplace, guiding what to pay your top talent and how to hire top-performing employees while maintaining a diverse workforce.
- Improve Data-Driven Decision-Making: With GPC, you’ll have access to comprehensive data on compensation programs, talent acquisition strategies, and other factors, allowing you to make data-driven decisions and stay ahead of the competition.
Sample Employment Tax Calculation
Employ Your Selected Workforce in Austria via Global Employer of Record (EOR)
Acumen’s Global Employer of Record (EOR) solution was designed to help international companies like yours expand their global reach and engage the brightest global talent for their projects. Employer of Record (EOR) solution in Austria offers an efficient and inexpensive alternative to direct hire.
As an Employer of Record services provider, Acumen International helps businesses legally engage and pay they are selected highly skilled professionals in Austria. Businesses desiring to hire local employees should be prepared to pay competitive salaries to attract and retain the most qualified candidates.
Acumen International offers a comprehensive global Employer of Record solution to handle all payroll details while ensuring full compliance with in-country labor and taxation laws.
Spotlight on Austria
Austria (the Republic of Austria) is in southern Central Europe, north of Italy and Slovenia. It consists of nine federated states. Austria has been a European Union Member since 1995.
- Capital: Vienna.
- Population: 9.1 million people in Dec 2022. Nearly two-thirds of the populace lives in urban areas.
- Labor Force: 4,689,420 in 2021.
- Industries: Top industries in Austria are construction, machinery, vehicles and parts, food, metals, chemicals, lumber and paper, electronics, and tourism.
- Trading partners: Austria’s top import/export partners are Germany, the United States, Italy, Switzerland, and Germany, Italy, and Czechia, respectively.
- Local currency: Euro.
- Minimum wage: There is no minimum wage in Austria. The minimum salary is set by collective agreements depending on the sector one works in.
- 13/14 salaries: There are 13th and 14th salaries in Austria – the holiday bonus is paid out in June, and the Christmas bonus is paid out in November.