What do the €200 setup fee and €50 monthly fee include?
The one-time €200 fee covers the initial setup of your foreign company for the German employer infrastructure required to run payroll and social-security reporting. This includes collecting and reviewing the required company information, preparing the employer registration workflow, coordinating the relevant German social-security registration steps and setting the company up for German payroll. The €50 monthly fee per employee covers ongoing German payroll processing, social-security calculations and filings, employee payslips, employer contribution calculations and recurring payroll reporting. Additional tax-advisory services such as employee income tax declarations or permanent-establishment assessments are separate services.
Which software is used for payroll accounting?
German payroll is handled locally as part of HireGermany’s ongoing employer service. Payroll processing is carried out using DATEV.
Can the employee pay the HireGermany fees?
Yes. The employee can cover the HireGermany fees personally. If the service is invoiced directly to an employee in Germany, German VAT is added where applicable. For a German private customer, the standard VAT rate is currently 19%.
Do you provide German employment contracts?
No. HireGermany does not provide or review employment contracts and does not offer employment-law advice. If you need support with a German employment contract or other employment-law questions, we can recommend a qualified German employment lawyer.
Can a foreign company hire directly in Germany without setting up a German company?
HireGermany can work for EU and non-EU companies that want to employ someone in Germany directly through their foreign company. Whether the setup is appropriate depends on the company's existing German presence and the employee's activities in Germany. You can hire directly through your foreign company without first incorporating a German UG or GmbH. Whether your activities create a German permanent establishment is a separate tax question.
How long does employer registration take?
A typical registration window is around 3–7 weeks, depending on processing by the German authorities. If the employee starts before all registration details are available, provisional payroll can be prepared and then finalised once the registrations are complete.
How do wage tax and social security work with HireGermany?
In the standard HireGermany setup, German wage tax is not withheld through payroll. German social-security contributions are still calculated and deducted because the employee works in Germany, subject to applicable cross-border and posting rules. This is why our calculator shows Employee Pay (Net + Income Tax): gross salary minus employee social-security contributions, before the employee's personal German income-tax payments. The employee generally pays German income tax directly through advance payments and/or the annual income-tax declaration.
Is HireGermany an Employer of Record?
No. With an EOR, a third party generally becomes the local employer. With HireGermany, your own company remains the employer and we build the German payroll and social-security infrastructure around that direct relationship.
Could the German employee create a permanent establishment for us?
Potentially. The answer depends on the employee's actual role, authority, working arrangements and the activities carried out in Germany. This is not merely a payroll question. Our German Certified Tax Advisors can assess the German tax implications and permanent-establishment risk alongside the employer setup.
What does statutory accident insurance (Berufsgenossenschaft) cost?
Statutory accident insurance is an additional employer cost and is paid entirely by the employer. It is calculated separately and is typically charged annually. The exact contribution depends on the responsible Berufsgenossenschaft, the employer's industry and its risk classification, so it is not included in the calculator total. For many office-based businesses covered by the VBG, the contribution is typically around 0.2%–0.4% of gross salary. As a practical example, at €5,000 gross salary this is often roughly €10–€20 per month. Other industries and Berufsgenossenschaften can differ materially.
Can you act as our authorised representative in Germany pursuant to Section 28f (1b) SGB IV?
The setup includes acting as the employer’s representative in Germany solely for the payroll-record obligations under Section 28f (1b) SGB IV. No broader legal, commercial or general representation of the employer in Germany is provided. In particular, we do not act on behalf of the employer outside the payroll/social-security scope, also to avoid creating any unnecessary permanent establishment implications.
Who is behind HireGermany?
HireGermany is a TaxGermany product backed by German Certified Tax Advisors. Employer registration, payroll and tax-related questions are handled within our German tax advisory infrastructure.