Austria is a central European country with a notable history and many mountainous villages. Planning an expansion to this country will be exciting for your company, but it also comes with its share of challenges. One of those challenges is setting up your Austria payroll. You have to decide among your Austria payroll options, learn the country’s employment compliance laws, and continue to run your parent company at home.
G-P is here to make your expansion easier through Austria payroll outsourcing. We’re a global PEO that uses our existing subsidiaries around the world to make expansions productive, successful, and fast. When you work with us, you won’t have to worry about compliance or how to add employees to your payroll — you can simply focus on growing your company.
Taxation Rules in Austria
Austria has extensive taxation policies for people who are self-employed or in paid employment. Employers and employees both contribute to these funds at various rates:
- Pension insurance: Employers contribute 12.55%, employees contribute 10.25%
- Accident insurance: Employers contribute 1.3%
- Health insurance: Employers contribute 3.78%, employees contribute 3.87%
- Unemployment insurance: 6% split equally among employers and employees
- Others: Employers contribute 0.85%, employees contribute 1%
Employees may also have to make contributions to a trade union or religious community, such as a church tax. Employers deduct these payments right from employees’ pay.
Austria Payroll Options for Companies
You have four different Austria payroll options to choose from:
- Internal: Large subsidiaries that will operate in Austria long-term can choose to run an internal payroll. Doing so requires a much larger HR staff and the budget to hire and train new employees.
- Remote: Some companies may already have their own remote payroll out of the parent company. You can add your subsidiary’s employees to that payroll as well, but they’ll have their own tax laws and regulations.
- Austria payroll processing company: Working with an Austria payroll processing company can help outsource your payroll, but you’ll still be responsible for all compliance-related to payroll.
- Austria payroll outsourcing: Finally, you can work with G-P for Austria payroll outsourcing services. We’ll add your employees to our locally compliant payroll to outsource both compliance and compensation.
How to Set Up a Payroll in Austria
If you decide to set up your Austria payroll yourself, you need to establish a subsidiary first. Completing this step can take weeks or months depending on your subsidiary’s location and structure. Fortunately, G-P can use our Employer of Record solution to help you start working faster. We’ll outsource your payroll and take all compliance matters on so that you can focus on running your new company location and maintaining your parent company.
Termination can often be tricky in a foreign country. We recommend outlining entitlement and termination terms in an employment contract before hiring employees and choosing your Austria payroll solution. Termination requires advance notice depending on how long the employee has worked for your company. Employers are also required to provide severance pay.
Payroll Processing Company in Austria
G-P offers Austria payroll outsourcing services to help you expand quickly. Contact us today to learn more.