The concept of partnering with a local professional payroll provider in connection to employment, especially in Germany, should always be taken into consideration to avoid any unforeseen legal liabilities to government authorities.
The most common challenge is how to deal with international offices especially when the company´s headquarters is situated abroad. Aside from the aforementioned challenges, there might be some possibilities of uncertainties or confusion with regards to German laws and regulations given the language barrier or other bureaucratic considerations.
As a response to the challenges in terms of payroll, Consultinghouse registered Yocudas as an employing company to the German social security- and tax system. After that, the application of German payroll tax number was also done. Once the company was set-up in Consultinghouse´s HR system, then the same process was applied to their employee. At this phase, bureaucratic functions were executed in general and specific levels- namely that of the company and the employee.
In effect, the employee has also been registered to the German payroll and social system- in order to obtain a German payroll tax number as well as to be registered in the HR system. Since their specific employee changed the residential address, eventually Consultinghouse guided Yocuda to update payroll information sheet with the correct authorized information and bank details and submitted the necessary documents to the authorities.
To ensure that Yocuda received the complete payroll solutions, Consultinghouse has also been processing the monthly payroll slips of Yocuda by providing direct translations in either English or German language and these are also prepared in PDF format and distributed, when requested. The generation of withholding tax returns, monthly report to all social securities, and monthly report to insurance companies were taken care of by Consultinghouse.
Furthermore, the monthly monitoring and distribution and of money to employees, tax authorities, and insurance companies were included in Consultinghouse´s scope of responsibilities. To avoid any miscommunication, Consultinghouse provided a single point of contact to Yocuda.
