- 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
Global Employer of Record (EOR) in Austria
What Is a Global Employer of Record?
Global Employer of Record (EOR) in Austria comes in handy when businesses expanding globally face many challenges when properly onboarding employees in foreign countries. In most cases, compliance with local laws requires establishing a legal entity in the country where the business operates. This process can be costly, time-consuming, and potentially undesirable for many employers. With Acumen International by your side, you can easily manage your global employment and HR needs without worrying about the complexities involved. 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.
Employer of Record – The Best Option for Expanding Your Business 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 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 looking to expand 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, as it allows companies to sidestep the administrative and financial burdens involved in 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 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.
What Services Does a Global Employer of Record (EOR) Provide?
The Employer of Record usually handles human resources-related issues regarding the global workforce. These issues include but are not limited to:
- Payroll and benefits management;
- Compliance with local tax rules (file & deposit) of the country where the EOR company is located;
- Handling employment contracts:
- Background, education, and other checks;
- Onboarding and termination processes, as well as employee’s compensation;
- Arranging visas and work permits for employees;
- Ensuring the working process is organized under local labor laws;
- Processing workers’ medical insurance and other benefits (day-offs, bonuses, and more);
- Process maps, employment guides, and other documentation.
Payroll 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 minimum wage of at least EUR 1,500 per month.
- 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.
Employ your Selected Workforce in Austria via Acumen’s Employer of Record (EOR) Solution
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 global PEO and payroll solution to take care of all payroll details while ensuring full compliance with in-country labor and taxation laws. Click here to get more information about Acumen’s Global PEO and payroll service in Austria.
Legally Onboard and Payroll your Employees in Austria with Acumen’s Global Employment Solution
Acumen’s Global employment services are designed 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 global markets without legal and HR compliance risks
- Local support for international clients and their ex-pat employees
You can trust Acumen to handle your workforce management’s global employment and HR details in Austria to ensure full compliance with in-country employment laws. Reduce risks while expanding your business without establishing your legal entity in Austria.
Our Global Employer of Record service prepares all necessary contracts for the employment relationship. After signing the contracts, the employee can be registered for social security. The registration for social security must be done before the employee starts working. Once the employee has registered for social insurance, the onboarding process is complete, and the employee can start work.
Leave it to Acumen to hire and compensate your employees on your behalf, so you can focus on growing your business.
In addition to legally onboarding local citizens, we can organize work permits and business visa sponsorship for your expatriate team via our Employer of Record and employ them on your behalf once legal permissions have been attained.
With Acumen, you can rest assured that all legal requirements are met for compliant hiring and compensating your local and expatriate employees in Austria and 190 countries worldwide, where we serve our international clients.
Spotlight on Austria
Austria (the Republic of Austria) is situated in the southern part of 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: 8,884,864 in July 2021. Nearly two-thirds of the populace lives in urban areas.
- Labor Force: 3,739 million in 2020.
- 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.