The legal requirements for payroll accounting for international employee assignments are currently growing steadily. At the same time, there is a desire for simple, efficient and cost-effective processing.
Employee satisfaction in the sensitive area of remuneration is an important entrepreneurial success factor in transfers, delegations and other short-term foreign assignments such as foreign business trips.
Our experts at WTS support
- employers
- payroll service providers
in all areas before, during and after payroll to ensure payroll tax and social security compliance at home and abroad.
The following points should be noted:
- Sustainable increase of your business success through a very practical approach, made possible by well-trained employees with broad and practical experience acquired through previous activities in international consulting firms, IT industry as well as in financial administration
- Deliberate refraining from performing annual audits (EU required separation of auditing and consulting for capital market oriented companies); thus we can guarantee our clients a conflict-free and thus future-oriented and long-term partnership.
Services provided by our WTS experts include:
Expat payroll services
For international employee assignments
- Process support both on a monthly basis and in the context of so-called year-end adjustments
- Determination of tax-free periods at home and abroad
- Tax allocation of the salary according to DTT/AAD in accordance with the guidelines of the German Federal Ministry of Finance (BMF)
After payroll
- Generation of salary statements for taxation abroad, (so-called foreign salary statements)
- Synchronization of domestic and foreign payroll by WTS experts or the global partners of WTS-Global
Generation of attachments N-AUS
Automated generation of annex N-AUS from salary data according to the tax-exempt wages according to DTT/AAD
Shadow payroll Inbounds /so-called permanent establishment travelers
- Inbound cases with economic employer in Germany
- Implementation and execution of shadow payroll accounting (shadow payroll accounting).
- Determination of the salary to be taxed in Germany
- Determination of the employee's personal tax liability including the application for all necessary forms (e.g. wage tax deduction certificate)
- Setup of the appropriate wage types in payroll accounting
Self-disclosures wage tax deduction
- Preparation of notifications according to § 41c € EStG
- Support during/after external wage tax audits
Compensation and disadvantage calculations
On request, execution of compensation and disadvantage calculations, e.g:
- Progression disadvantage compensation
- Tax equalization calculations
- Distribution of tax liabilities in the case of net wage agreements
Other payroll-related services
- Documentation of the above-mentioned calculations for the employee, at home and abroad, as well as for possible external payroll tax audits
- Consulting on all mobility topics related to payroll accounting, including payroll accounting processes as well as special features of your payroll accounting system in the case of foreign matters
- Certified SAP© or Datev experts available upon request
Digitization and automation
In addition to the above topics, the digitalization and automation of our clients' billing processes are the focus of our activities. These are in detail:
- Technical conception of global mobility IT solutions
- Consulting on IT processes between HR, payroll and foreign countries / tax consultants
- Collaboration in IT and payroll projects for employee assignments
- Offer of various SAP© add-ons for assignment-specific issues
- Offline interfaces for all common payroll systems for the provision of WTS services
Services abroad
Our portfolio is completed in selected countries by offering comprehensive services related to foreign (shadow) payroll accounting, including the necessary legal registration requirements. Our services include, among others
For employees:
- Assignment meetings with expatriates to explain the tax and social security consequences
- Assistance with registration to obtain tax and/or social security numbers abroad
For employers:
- Ensuring payroll tax compliance abroad
- Determination of the salary that is taxable abroad (proportionally, if applicable) according to national law (for taxation and contribution abroad), according to the salary data and periods of employment provided by the employe
- Execution of foreign (shadow) payroll accounting
- Transmission of payroll tax and social security notifications to foreign authorities
- Preparation and transmission of annual tax returns and applications for advance income tax payments
- Preparation of foreign income tax returns
- Advice on the tax optimization of salary components, in accordance with the respective national tax law
Preparation of tax returns for posted employees
Preparation and optimization of tax returns for posted employees in Germany and abroad ideally directly on the basis of the payroll statements prepared
