Payroll Services - Germany
At Kanzlei Schnürch, we provide comprehensive payroll services for companies operating in Germany, supporting both local and international businesses. Our digital payroll solutions, based on DATEV eG systems, ensure full compliance with German payroll regulations while delivering efficient and secure processing for organisations with up to 500 employees.
From monthly salary calculations to tax filings and social security contributions, we manage the entire payroll process accurately and on time.
Full-Service Payroll Processing
Our payroll services include:
- Gross-to-net salary calculations
- Processing of employee benefits and allowances
- Wage tax and social security filings
- Coordination of income tax matters for employees of representative offices
- Communication with German tax authorities and social insurance institutions
- Ongoing payroll reporting and documentation
- Payroll corrections and recalculations (e.g. changes in status or tax reassessments)
- Support in permanent establishment (PE) scenarios, including payroll tax assessments
- Integration of third-party systems (e.g. HR WORKS) for travel expense management
- In-house support for internal payroll teams or temporary cover
- International payroll: coordination with IR Global partners with a single point of contact
- Support during wage tax and social security audits (including euBP audits)
We ensure that payroll is processed in accordance with German employment and tax regulations, reducing risk and administrative burden for your business.
Our systems also support the requirements of electronically supported tax and social security audits (euBP), which are typically conducted at regular intervals.
Shadow Payroll for International Assignments
For companies with employees working across borders, shadow payroll may be required. Shadow payroll ensures that employees on international assignments are taxed correctly in the host country while maintaining payroll obligations in their home country.
We support businesses in managing complex international payroll structures, helping to prevent double taxation issues and ensuring compliance with German and international tax requirements.
This is particularly relevant for multinational companies with employees temporarily assigned to Germany.
Split Payroll & Economic Employer Considerations
Split payroll refers to the allocation of an employee’s remuneration between different jurisdictions, with payroll processed locally in each country to meet tax and social security obligations.
In Germany, this is often linked to the concept of the “economic employer,” which is a key factor in determining payroll tax obligations.
German tax authorities focus on economic substance rather than purely contractual arrangements. A company may be considered the economic employer in Germany if:
- It bears all or part of the employee’s remuneration
- The remuneration is attributable to the German entity under arm’s-length principles
- The employee is organisationally integrated into the German business
Where these criteria are met, payroll and tax obligations in Germany may arise. We provide clear, practical guidance on these matters, ensuring compliance while minimising regulatory risk.
Secure & GDPR-Compliant Payroll Management
Payroll involves highly sensitive personal data. We prioritise data protection and confidentiality by using secure, cloud-based systems, including DATEV Employee Online.
This allows employees to securely access payslips and tax documentation while ensuring full GDPR compliance and data security.
Digital payroll solutions also contribute to more sustainable processes by reducing reliance on paper-based documentation.
Support for International Companies in Germany
International businesses expanding into Germany often require structured payroll support to navigate local employment, tax and reporting obligations.
We work closely with multinational clients to ensure seamless payroll integration aligned with both German regulatory requirements and group-level processes. Where required, we act as a local partner within international payroll structures.
Frequently Asked Questions
What payroll obligations do companies have in Germany?
Companies are required to calculate and withhold wage tax, social security contributions and other statutory deductions, and submit filings to the relevant authorities on a regular basis, typically monthly.
What is shadow payroll in Germany?
Shadow payroll ensures that employees on international assignments are taxed correctly in Germany while maintaining payroll obligations in their home country.
When does split payroll apply?
Split payroll may be required where an employee is economically employed by a German entity, even if formally employed by a company in another jurisdiction.
Can you support international companies with German payroll?
Yes. We assist both Munich-based and international companies operating in Germany with compliant and secure payroll management, and can act as a local partner within global payroll structures where required.