- Overview: Austria
- Global HR Compliance
- Global PEO and payroll
- Work permit for hiring expats via PEO
- Expand without a company set up
- Contractor vs. employee: which is better?
Global PEO and Payroll in Austria
Getting your business up-and-running in Austria can be challenging, especially if you do not speak the native language. Establishing your own business entity in Austria is an option to be considered as you expand abroad. But before you invest valuable resources in setting up business in Austria, you should be fully aware of the risks involved.
Acumen’s Global PEO and Payroll solution was designed especially for companies like yours, to smooth the way for quick, easy and risk-free business operations in Austria, without having to establish a legal business entity.
Acumen International – Your Professional Employer Organization in Austria
Navigating the Austrian legal system and adhering to regulations governing employment and taxation can be challenging for businesses, especially if you are not a native Austrian speaker. Partnering with Acumen International as a global Professional Employer organization (PEO) provides you with the local knowledge and support you need to conduct business in Austria without concern for legal and compliance risks.
Whether you represent international client companies or you are taking your own business operations abroad, Acumen International’s Global PEO and payroll service allows you to hire and payroll local and expat employees in Austria. With Acumen in your corner, you can quickly and easily onboard and compensate your employees without risk of legal repercussions.
International Global Payroll and Taxation in Austria
Employment related taxes
Personal Income tax (PIT). All individuals resident in Austria are subject to Austrian income tax on their worldwide income, including income from trade or business, profession, employment, investments, and property. Non-residents are taxed on income from certain sources in Austria only. Non-residents are subject to income tax on Austrian-source income at normal rates.
Corporate income tax (CIT). Corporations (i.e., limited liability corporation [GmbH], stock corporation [AG]) are subject to unlimited taxation in Austria of their entire (domestic and foreign) income if they have their legal seat or place of effective management in Austria. A non-Austrian corporate tax resident (with neither a legal seat nor place of effective management in Austria) is subject to limited taxation on certain sources of income in Austria.
Payroll Cycle in Austria
In most cases remuneration is transferred to a salary account on the last day of the month or on the first day of the following working month. In some cases, workers receive their wages weekly in cash.
Taxes, social insurance contributions and other deductions (e.g., union contributions) are deducted from gross pay and withheld by the employer, who then transfers them to the relevant institutions (finance office, social insurance institution, etc.).
The payroll period pursuant to most CBAs (collective bargaining agreements) for salaried employees is the calendar month.
13th salary in Austria
It is customary to pay 13th and 14th salaries in Austria. The annual salary is paid in 14 equal payments. The 13th and 14th payments are paid out in June and November.
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How Acumen’s International PEO and Payroll Service can Benefit Your Business in Austria
Compensating your local and expat workforce in Austria and closely adhering to Austrian taxation requirements can divert your attention and resources from activities that help your business grow. A reliable global employment solution like Acumen’s Global PEO and Payroll service can take a substantial burden off your shoulders so you can focus on running your company.
Outsourcing the administrative and compliance tasks involved in employee payroll is one approach, but we have a better solution. Acumen International offers a global PEO and payroll solution that goes beyond outsourcing. We hire and compensate your global workforce on your behalf, and take care of all the details of payroll while ensuring full compliance with Austrian labor and taxation laws.
It is important to note that Acumen does not provide international global payroll services as a standalone solution, but only as a part of our global PEO and Payroll solution.
Our comprehensive global PEO and payroll services are just some of the benefits of partnering with Acumen International. We make it easy for you to achieve your business goals in Austria by officially employing and compensating your best selected global talent – both locals and expats – without concerns for legal and compliance risks faced by global employers.
Disclaimer: Any of the above information is subject to changes imposed by Austrian laws. To get the latest updates on taxation in Austria and in 190 countries worldwide, contact Acumen’s team of global employment experts.