As of the beginning of 2021, employers without a registered office in Germany must appoint an authorized representative if they employ staff subject to social security contributions in Germany. This authorized representative is responsible for ensuring that the remuneration records are properly kept and archived. For the purposes of social security, the registered office or residence of the authorized representative is considered to be the employer’s place of business.
The regulation is intended to ensure that the auditors of the German pension insurance and other supervisory bodies have access to wage and salary records even if an employer is not present in Germany.
The new regulation goes into effect on January 1, 2021 (through § 28f para. 1b SGB IV).
Paychex may act as your proxy
Paychex has a lot of experience in handling payroll accounting for employers not based in Germany, such as from the USA. We know the necessary formalities and will take care of managing your payroll account, even for temporary construction work.
We are happy to offer our customers in such cases the option of acting as an authorized representative on their behalf. Get in touch with us!