If you intend to hire employees in Germany, it is necessary to clarify first of all whether the act of hiring results in the foundation of a stable organization. Generally, this is not the case when only one or two employees are hired, and when those employees do not have the authority to sign contracts on behalf of the principal.
If there is no stable organisation, the following tasks have to be carried out:
- An representative has to be appointed. He or she applies for a tax number at a German fiscal office. The tax number is used in order to handle the wage tax of the employees
- The representative has to register the employment relationship with the local tax office and the social insurance institution
- The following documents have to be provided on a monthly basis:
- The wage accounting for the employees
- The report for the social insurance institution
- The wage tax report for the fiscal office
- On the basis of the reports mentioned in point 3, the payments to the respective recipients have to be made