Employer and Payroll Registration: Hiring Staff in a New Country

Hiring people in a new country brings obligations. Your company normally has to register as an employer, withhold tax from pay and make social contributions. The authorities and the rules differ by country, and so does what counts as an employee.

What registering as an employer means You tell the tax authority and the social security body that you will employ people. You receive an employer number or payroll account. From then on you deduct tax and contributions from pay, add your own contributions where they apply, and file regular payroll returns.

Before you hire Check the minimum pay and the rules on contracts and working hours. Find out what insurance is required, such as workers compensation. Work out whether the people you want to hire are employees or contractors, because the rules differ.

Payroll in practice Most countries expect payslips and regular reports. Many companies use a local payroll provider so that deadlines are not missed. Keep records of every payment, because the authorities can ask for them years later.

Tips Register as an employer before the first payday, not after. Ask the authority named on your country page which forms you need. Speak to a local accountant if you are not sure about contractors.

These are general guides, not legal advice. Rules differ by country and by product and they change often. Confirm the details with the regulator named on your country page or with an expert before you act.