Question to Ask When Hiring An Employer Of Record in Germany

An Employer of Record Germany is a bridge between the employee and the client company when the latter decides to expand to Germany with no existing footprint. Outsourcing employer of record services in Germany can be a bit overwhelming though. Having all the information on how PEO in Germany works, what are the advantages, what questions you need to ask and how best to decide which PEO firm you should hire for work would help you make a better decision and less stressed transition.

 


Benefits of using an Employer of Record?

-      The EOR takes up all the legal responsibility and manages your payroll, tax and immigration  in the host country thus giving you the much needed bandwidth to take care of expansion without running any compliance risks.

-      An EOR also hires international talent, performs background checks and other administrative tasks that helps companies in ramping up the operations faster.

-      EOR is also a convenient and cost-effective option especially for the firms that do not have the corporate infrastructure to manage local payroll, tax and immigration.

 

Question to Ask

What are my alternatives if I choose not to use an Employer of Record?

You can have in-house resources go abroad and set up everything from scratch after understanding the processes and legalities of the country but that is a time consuming process, one that is likely to be expensive and full of risks.

The best option is to hire a PEO which will work well as it can take care of your hiring needs once the firm is set up in addition to taking care of all the administrative tasks from payroll to taxation to day to day activities.

How do I choose an Employer of Record provider?

Work with a firm that you feel most comfortable with. Don't rush into the selection process and make a list of potential firms. Set up a meeting and also talk to the team that will be taking up your work once you finalise a firm as you will be dealing with them on a daily basis so it is good to find synergies.

 A few questions you can ask these firms in a meeting are as follows:

-      Do they have operations in the area you are trying to set up your company in?

-      Do they have any case study on their experience with similar business owners in your industry?

-      Do they have any plan of action for your particular situation, no particulars just broad steps?

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