Employers located abroad

In the European Union, employees who work in a Member State are subject to the social security system of that particular Member State, regardless of the country in which the employer is located.

This is based on Article 21 (1) of the EU Implementing Regulation (EG) 987/09, which means that a foreign employer must apply for social insurance for his employees in Germany and pay contributions as if the company had its registered office in Germany.

From 1 January 2021, foreign employers without a registered office in Germany with employees who are liable for social security contributions in Germany must appoint an authorised representative in Germany, who must keep and retain compulsory remuneration records in German. This is to ensure that a review of the employer’s obligations under social security law is possible in Germany even if the employer is located abroad.

The authorised representative can present the remuneration documents to be checked according to § 28p SGB IV in his own business offices or in the business offices of the examining body. The inspection at the employer’s offices, which is required in certain cases (section 98(1) sentence 4 SGB X), is excluded if the authorised representative’s offices are integrated into his or her private sphere.


We would be happy to provide you with our payroll service for this purpose. Please feel free to contact us and we will provide you with a non-binding tender for your needs.



Quelle: LGP Löhne und Gehälter professionell 01-2021

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