At the initial stage of the company formation in Germany, you may encounter several local features and requirements applicable in payroll reporting. In addition to income tax, the tax duties of company employees include paying church tax and solidarity tax. The amount of taxes is deducted from the employee's income and should be reflected in the company financial statements and in the employee's income statement. Employer is responsible to pay health insurance tax, unemployment insurance and pension fund contributions.

Since the German government-imposed responsibility on the employer for possible errors in payroll reporting, many companies prefer to use the services of third-party service providers in order to reduce liability risks and costs.

VEGO Consult could find for you right solution related to payroll reporting (including registration of taxes on medical, social insurance etc.), leaving you with complete control.