- Overview: Germany
- Global PEO and Payroll
- Global HR Compliance
- Work permit for hiring expats via PEO
- Expand without a company set up
- Contractor vs. employee: which is better?
Global Employer of Record in Germany
What Is a Global Employer of Record?
An organisation that allows employers to hire employees in other countries is the Global Employer of Record (GEOR). The global Employer of record service provider handles all aspects of the foreign employment process, from ensuring compliance with local labour laws to managing payroll and benefits and providing HR support.
As a business expands into new international markets, it may need to hire employees in countries where it has no physical presence. An EOR, or global employer of record, is a cost-effective and compliance risk-free way to add employees in new markets without having to establish an entity in a foreign country.
A Global Employer of Record is an excellent way for a business to shield itself from the administrative burden of HR. The most common GEO services include payroll, tax filing, benefits administration, and workers’ compensation coverage; however, other crucial functions include compliance monitoring, policy development, and training administration. A PEO provides its clients with invaluable flexibility and cost savings helping make the day-to-day management of your accounts payable much easier while saving you valuable time!
How Does a Global Employer of Record Work?
If you’re looking to do business in a foreign country, it’s essential to make sure you’re compliant with local payroll laws. This is where an Employer of Record (EOR) can help. An Employer of Record (EOR) can act on your behalf to manage local employee-related matters such as payroll, tax deductions, and onboarding of new hires.
An EOR can provide a registered entity for running a local, compliant payroll, managing payroll taxes, benefits, compensations, deductions, social insurance, and employee information. An Employer of Record can guide you on the host country’s required notice periods, termination rules, and severance pays, saving thousands of dollars in lawsuits while freeing up HR from repetitive tasks.
With a global EOR partner, you can ensure that your business operates smoothly and legally in your new country of choice.
Global Employment Services in Germany
Businesses in the process of expanding globally often face challenges when it comes to compliantly onboarding employees in foreign countries. In most cases, legal compliance requires the establishment of a legal in-country business entity, a complex, costly and time-consuming process that many employers are not ready to undertake in Germany.
To help your organization legally onboard and payroll a workforce in Germany, Acumen International offers a global employment solution via our Global Employer of Record (EOR) designed to help you circumvent the legalities of direct hiring, eliminating the need for you to establish a legal entity in Germany to conduct business there.
Global Employment Journey — 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|
Global EOR Helps Test Foreign Markets without Local Incorporation
As a business owner, you may feel overwhelmed by the tax implications of expanding your business overseas. However, new ideas exist to reduce complexity and ease the burden on busy entrepreneurs. In this article, we’ll explore some of the best ways to reduce the complexity of tax planning for international expansion.
If you’re thinking about using a Global Employer of Record (EOR) talent engagement model for your business, it’s becoming increasingly popular. Here’s how it works: a third-party company operates a local entity in each jurisdiction where it offers services. This can be a great way to comply with various laws and regulations.
Here’s how the Employer of Record arrangement works. A new business owner approaches a global EOR company with the intent of hiring a remote worker based in a different jurisdiction. Rather than the business owner having to establish a new company or register a branch in Germany, the employee can be employed by our local EOR company in Germany. All attendant costs associated with this arrangement are then charged to the client company for a fee. This can be a more efficient and cost-effective way of doing business for both the employer and the employee. Many start-ups like this idea because it gives them the flexibility to focus on getting their business up and running.
Global Employment Challenges Acumen Global EOR Helps Address in Germany
- Compliant hiring and payroll in 190+ countries
- Ongoing monitoring of legal, firing & firing regulations
- Tax & benefits guidance
- Continuous labour, tax, payroll, and immigration compliance monitoring & updates.
2. Risk Control
- Permanent establishment risk
- Worker misclassification risk
- Under-taxation risk
- HR & immigration compliance risk
- Intellectual property right risk.
3. Need for Local Incorporation
- Outsourced HR support upon new market testing
- HR arm upon global expansion
- Business in transition – M&As, close-downs.
4. Employee Transfer
- From PEO to PEO
- From EOR to EOR
- From legal entity to legal entity
- Convert Independent Contractors to full-time employees.
5. All-in-one Solution
Acumen Global Employer of Record offers integrated global employment solutions under one roof and can replace multiple vendors, including:
- Payroll Company
- Employee Benefits Broker
- HR Consultants
- Background Checks Vendors
- IP Attorney
- Tax Advisor
- Translation service
- Legal Advisor
- Immigration Advisor
- HR Compliance Advisor.
6. Global Knowledge. Hyper-local Expertise and Support
- Faster time-to-hire with streamlined paperwork and communication
- One platform to onboard and manage all team members
- Streamlined global payroll
- Single source of truth for contracts and documents
- Dedicated customer service
- 24/7 local support
- Simplified hiring for Full-time employees and contractors
- Expertise with hiring and firing local and foreign workforce.
The highly developed economy and geographic location at the center of the European Union make Germany a cornerstone around which many businesses seek to build their European and worldwide expansion strategies.
Why Work with a Global Employer of Record in Germany?
Payroll taxes and service fees can be an enormous burden for employers. Many companies use a Global EOR (Employer of Record) to help with these costs. PEOs typically charge a percentage of the total payroll, including employee insurance fees. It can be challenging to determine the actual costs for these services, especially when some employer taxes are only paid on wages up to a certain threshold.
1. Single Global Service Agreement
A global PEO can cover all your international projects within a single contract and add new employees and services as you expand your global workforce in new countries.
2. No Required Minimums
We accept projects of any length with any number of employees.
3. Flexible Pricing — Pay As You Grow
At Acumen, we adjust your pricing based on the project employee number, whether you need to scale up or down.
4. End-to-end Global Employment Solution
We manage all your global services, including employment, recruitment, immigration, legal and global HR consulting, saving you valuable time. And Acumen International covers the cost and saves you the effort of finding and selecting local employment-related service providers.
5. Avoid Lawsuits in Germany
One way to limit your liability as an international employer is by working with a global Employer of Record in Germany. A Global Employer of Record (EOR) has the expertise and infrastructure to ensure that international companies operating in Germany follow local employment and tax laws. A Global (EOR) enables companies to minimize their risk by providing employment infrastructure, handling payroll, and managing other HR functions for their clients, so that the client can take more of a backseat approach when managing German and foreign employees.
6. Reduced Expenses
A global employer of record (EOR) will bundle the cost of payroll, benefits, and workers’ compensation onto one payroll. The EOR will also handle tax filing on your behalf. This means that you only pay one set fee per month for all services, which can save you time and money by preventing multiple invoices from being mailed to you.
7. Free Yourself From HR Hassles with a Global Employer of Record in Germany
When you partner up with a Global Employer of Record, you’ll have someone who’s always there to handle the small and large tasks that will come up in your HR department. You’ll never have to worry about filling out paperwork or managing new hires again—you can focus all your attention on growing your business. A Global Employer of Record will handle the HR headaches so you can concentrate on what matters: your business.
Acumen International – Your Single Point of Truth and Global Employment PEO Solutions Provider in Germany
- Immediate service coverage in 190 countries.
- Both a single point of contact and a dedicated account manager for your project for all target countries.
- A single contract for all in-country services (employment, immigration, legal, etc.)
- A single PEO provider assumes full responsibility for your international employees in multiple countries.
- Payments are made within the UK or to the UK bank company account.
- Fully compliant standardized procedures and reporting systems.
- Standard payroll breakdowns for all target countries.
- As soon as we receive your request for a project in any country, we will send you a payroll breakdown and offer within 2 working hours.
- Full 100% fee money-back guarantee for employee or contractor payment delays.
- Tailored and 100% compliant employment contract drafts.
With Acumen in your corner, you can quickly and easily onboard and compensate your employees without risk of legal repercussions.
|Our Global PEO&Payroll||Client|
|Employment risks mitigation|
|Tax compliance & payroll processing|
|Incorporation costs||no need for own
|Coverage||190 countries||190 countries|
Ready to get started? Request a quote!
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.
Spotlight on Germany
Germany is strategically at the heart of Western Europe, a founding member of the European Union, and a federal republic with a mixed economic system based on private freedom combined with centralized economic planning and government regulation. Germany is one of the world’s most global economies and one of the three leading trading nations.
- Location: Germany is a European country between the Alps to the south and the Baltic and North seas to the north. It shares borders with nine countries: Austria, Czechia, Netherlands, Poland, France, Switzerland, Belgium, Denmark, and Luxembourg.
- Capital: Berlin.
- Population: with a population of 79,903,481 according to 2021, Germany is the most populous country in the EU and the world’s 19th-most populous country.
- Labor force: Germany’s labor force is estimated to be around 43,38 million. Germany benefits from a highly skilled labor force but faces significant challenges to sustained long-term growth through low fertility rates and a significant increase in net immigration.
- Position on the World Bank’s Ease of Doing Business index: DB 2020 Rank is 22 out of 190.
- Position in the global marketplace: Germany has the largest economy in Europe and the fifth-largest economy globally.
- Most developing industries: Germany is one of the world’s producers of iron, coal, steel, cement, chemicals, electronics, machinery and machine tools, vehicles, textiles, food, and beverages.
- Main trading partners: Germany is a leading exporter of vehicles, machinery, chemicals, and household equipment. The main export partners are Austria (5 percent of total exports in 2019), China (7 percent), France (8 percent), Italy (5 percent), the Netherlands (6 percent), Poland (5 percent), the UK (6 percent) and the US (9 percent). The main import partners of Germany are Belgium, with 6 percent of total imports in 2019, China (8 percent), Czechia (5 percent), France (7 percent), Italy (6 percent), the Netherlands (9 percent), Poland (6 percent), and the US (5 percent).
- Local currency: the national currency is the Euro (€, EUR).
- Minimum statutory salary: introduced in 2015, the gross minimum wage amounts to 9.60 euros per hour worked in 2021.
- Thirteenth salary and other additional remunerations: extra payment given to employees in the form of the 13th salary is paid for ongoing work at the end of a calendar year. Christmas bonus is usually paid with the November salary.
Employ Selected Workforce via Acumen Employer of Record (EOR) in Germany
As a Global Employer of Record services provider, Acumen International helps businesses to legally engage and pay their selected highly skilled professionals in Germany.
Businesses desiring to hire local employees should be prepared to pay competitive salaries to attract and retain the most qualified candidates. Acumen International serves both end employers and service companies representing international clients as a global employment organization.
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
Acumen’s Employer of Record / EOR service in Germany offers an efficient and inexpensive alternative to direct hire. Our employer of Record solution allows companies to operate in Germany and in 190 international markets where we serve our clients without registering as a local business entity.
Legally onboard and payroll employees in Germany via Acumen Global Employer of Record (EOR)
Acumen’s EOR global employment solution helps businesses overcome legal challenges by hiring and compensating their local and ex-pat workforce in Germany on their behalf risk-free and cost-effectively.
If you want to reinforce your internal team with the expertise of Germany-based global talent, or if you have already selected a local candidate to work for you remotely and in full legal compliance in Germany, our global EOR solution is the ideal choice for you.
You can trust Acumen to handle your workforce management’s global employment and HR details in Germany to ensure full compliance with German employment laws.
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.
In addition to legally onboarding local citizens, we can organize work permits and business visa sponsorship for your expatriate team via our Global Employer of Record and employ them on your behalf once legal permissions have been attained.
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 employment in Germany and 190 countries worldwide and compensation of your local and expatriate employees where we serve our international clients.
Reduce risks while expanding your business without establishing your legal entity in Germany. Leave it to Acumen to hire and compensate your employees on your behalf, so you can focus on growing your business.