We can help you with administration and solutions in Germany
If you send employees to Germany who stay in Germany for more than 183 days in a calendar year, you are liable as a company in Germany to pay payroll tax for these employees. This obligation to pay payroll tax also applies in the case of temporary assignment of employees to Germany (so-called “staff leasing”), whereby the obligation to pay payroll tax arises from the first day of the temporary assignment of the employee.
In order to calculate the relevant payroll tax, you must have your employees’ wages processed by a German tax consultant in order to calculate the German payroll tax amount, which you can then pay to the German tax authorities. You have the same obligation if you employ German employees or if your domestic employees are insured by a German insurance company. With the help of our German tax advisor, we will process your employees’ wages and inform you of your further obligations in Germany.
Frequently asked questions
When am I obliged to process wages according to German regulations?
If you send your employees to work in Germany and these employees exceed 183 days in a calendar year in Germany, you are obliged to pay German payroll tax for these employees and therefore have your payroll processed by a German tax advisor.
Do I have to have payroll processed in case of staff leasing?
If you lease your employees on the basis of a German employee staff leasing permit (Arbeitnehmerüberlassung – AUG), you are obliged to pay German payroll tax for the employees from the first day of the staff leasing and therefore have your payroll processed in accordance with German regulations anyway.