6 Best Practices Of Payroll In Germany, Every Company Should Have


Payroll in Germany is one of the most important tasks. Not only is it usually the biggest expense of your company, it goes to one of the most crucial parts of your company - your team. Hiring a Payroll Company in Germany is a great move but having some best practices in your company can help keep your finances on track and keep your employees happy and satisfied. Below is a list of some of best practices that we recommend to our clients:
Go Completely Digital
1. Go Completely Digital

It is a good practice to keep all records associated with an employee for at least three years. In Germany these records even have to be kept for 10 years. This is a lot of paper. Digital documentation is a great way to keep all records at one place. If you are connected with a firm, you do not have to worry about this yourselves, but you still can make sure that all the records are neatly created on a digital platform. Not only are the records are more accurate but also more easily searchable.
Be Transparent
2. Be Transparent

Too often, employees are not very comfortable talking about the payroll system in their company. Payroll should never be a mystery as this corresponds to unanswered questions. Maintaining a transparency about your payroll process is the key to deal with this issue. This would help create a feeling among your employees that everyone at the organisation has a good understanding of their responsibilities. So make sure, that your payroll process is available for all employees to review. This not only helps create a common ground but also a scope for improvements in future.
Confidentiality Is Still A Must
3. Confidentiality Is Still A Must

Having a transparent Payroll process can go a long way in forging a relationship with your employees. At the same time, information like employee’s salaries, banking information and Social Security Numbers must always remain confidential. Having an expert firm on board can help you organize this information into a digital database which is fully secure and most unlikely to get compromised.
Classification
4. Correct Classification

The major problem in payroll arises when the employees fall into a wrong classification. This requires some caution. There are generally two types of employees in a company - the exempt and nonexempt employees. The difference between the two can be confusing at times and having an expert firm can greatly help in such situation. They not only help you keep a track of employee classification but also make it easier to record their hours.
 Tax On Time
5. Tax On Time

This practice will help ensure a seamless payroll process in your company. Provide important tax information to your employees so that they could get their refund process started. This could get tricky in the case of contractors as they would be the first to become impatient in case the documents get delayed. Having an expert firm onboard would help ensure that all the paperwork reaches your employees on time.
Get Up To Speed
6. Get Up To Speed

Every employee brings with him a truck load of paperwork and formalities. It can be a bit time consuming and overwhelming to get all the formalities completed. Having a speedy process in place could go a long way as it not only creates a great first impression of the company but would also get the actual work started in less time. Having an expert company to help you with this would not only make the process speedier but also seamless with the least strain. Equipped with the latest technology, the expert firm would help you achieve all the best practices in no time.
Location: Germany

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