Compliant Payroll Germany You Need To Know About A Lot
To set up a business in Germany, a company must register with all the applicable tax and the social security authorities. This may include applying for an employer number – an8- digit identifier for the address, name and the economy class of the company – whichis important for hiring the employees and registering them for the health and social insurance. The company should also apply for the statutory accident insurance and the dedicated tax number. It can take about 6 weeks for all these kind of registration info to be completely processed. The Employment Law Crucial for the successful operations in Germany is to understand the nuances of the employment law of the country. It defines a number of policies regarding the payroll Germany. For example, the law says that all the employees have the option of joining a work council, a union, or a collective labor agreement, which can decide the problems linked with working decisions, wages and working times. The law also defines the min. wages as €8.84/ hour though there are some special cases to this rule depending on the status, age or any other applicable collective agreements of the employee. The employment law of Germany also covers legal entitlement to time off- which is a minimum of 24 working days/year and its max. of 48 working hrs. / Week. In this time, the organization should set up bank accounts. Even though it is not compulsory to pay the employees from an in- country account, it is prudent for the employers to have at least one German account where government entities can send any re-imbursement payments. In reconciliation with their local work council and the global or local payroll providers, the organizations should also determine the place, the timing and the form of the pay slips and payments.
174 views • 11 slides
