Before initiating payroll services with Remote in Germany, please review this checklist to ensure your business has completed all necessary registration steps. This will help streamline the process and avoid any potential delays.
Mandatory Items
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Has the company registered with the Commercial Register (Handelsregister) and the Local Trade Office (Gewerbe-und Ordnungsamt)?
The Handelsregister is Germany's official business registry where companies must register their information. This includes the company name, legal form, registered office, management board members, share capital, and significant company changes. Visit the official website -
Has the company registered for a Company Number (Betriebsnummer)?
A Betriebsnummer (company identification number) is a unique eight-digit number required for social insurance purposes to identify you as an employer (Arbeitgeber). -
Has the company registered for Social Security (Sozialversicherung)?
Sozialversicherung (social insurance) is a mandatory insurance system in Germany that protects citizens from financial risks. Employers must register with the social security system and obtain an employer identification number (Arbeitgebernummer) from the relevant authorities. Registration includes statutory health insurance, pension insurance, unemployment insurance, and long-term care insurance. -
Has the company registered for Income Tax (Lohnsteuer)?
Income tax registration is mandatory for all companies in Germany. This registration provides your company with a tax ID number, establishes legal status, and enables tax compliance and government services access. Employers must register each new employee with the tax office (Finanzamt) by using their tax identification number (Steuer-ID) and relevant information. This registration ensures the correct tax class (Steuerklasse) is applied. -
Has the company registered with the Employer's Liability Insurance Association (Berufsgenossenschaft)?
All employers in Germany must register with this association. It provides essential insurance coverage for workplace accidents and occupational illnesses.
Conditionally Mandatory (Based on Employee's Existing Social Security Coverage)
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Has the company registered for statutory health insurance (HI)?
Statutory health insurance (Gesetzliche Krankenversicherung or GKV) is mandatory for employees in Germany whose earnings fall below a specified income threshold. This insurance system covers the majority of the country's residents. Visit the official website for more information.
Industry-Specific Requirements
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Collective Bargaining Agreement
While companies in Germany without a company agreement are not required to have a national collective bargaining agreement, they must still comply with legal minimum standards set by labor laws and may be subject to industry-wide collective bargaining agreements. A collective agreement—a contract between employers and unions—can involve either a single employer or an employers' association representing multiple employers in a sector. These agreements establish the rights and obligations of both employees and employers, covering working conditions such as wages, salaries, special payments, working hours, and holiday entitlement. Through these agreements, employees gain several advantages, including higher money, enhanced job security, and additional free time and holiday days.
Recommended Best Practices
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Have all internal company policies and agreements been established?
To set up your company for success and ensure smooth payroll processing, we kindly request your company policies. This includes crucial information like leave policies and standardized procedures for payroll processing to ensure consistency and accuracy in all calculations, deductions, and benefits. Visit the official website to read more.
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