Salary processing outsourcing - without compromise

Payroll errors can be costly for you and your employees. That is why more and more companies are choosing to outsource their payroll services.

But how does outsourcing work?

Choose the right service provider:

Pay attention to the service provider's experience in your company's sector. In addition to the necessary expertise in salary processing, know-how in HR support is also important. You want to be able to rely on your employees' questions being answered professionally, promptly and in line with your corporate culture.

Find out which software the service provider uses and whether it is compatible with your IT infrastructure. At ARTS, we specialize in DATEV and Odoo, but are also able to work with other accounting systems.

Compare offers from different service providers and watch out for hidden costs. We offer our customers various price models depending on the desired depth of service and number of employees. The entry-level price for the preparation of payroll accounting is €14.75. We offer separate price models for the preparation of salary and wage statements. Due to the lower complexity, the entry-level price here is €13.75 per employee.

Contact us and, after a free initial consultation, we will provide you with an individual quote tailored to your needs and budget.

Prepare the necessary documentation:

Before the first payroll run, provide the service provider with all relevant master data on your employees, such as name, address, bank details, social security number and tax class. The service provider will also need all your employees' relevant contractual documents, such as employment contracts, collective agreements and works agreements, as well as pay slips for the previous months.
Provide the service provider with any other relevant documents, such as certificates of sick pay, parental allowance or short-time working allowance.

Define the collaboration process:

Determine together how you want to communicate with each other, e.g. by e-mail, telephone or ERP system. Are there regular feedback meetings to discuss process issues? Determine by when the service provider must prepare and send you the payroll and how you want to check the accuracy of the payroll.

Prepare the transition to external salary processing:

Inform your employees in good time about outsourcing payroll and explain the benefits to them. Back up all relevant data before handing it over to the service provider.

Conclude the contract with the service provider:

Check the contract carefully for all important points. Make sure that it is clearly and unambiguously worded. Make sure that all your questions have been clarified.

According to § 108 GewO you are obliged to provide your employees with pay slips in text form. Digital pay slips offer many advantages over paper pay slips.

Digital payslips are permitted if your employees have given their written consent (LAG Hamm, judgement of 23.09.2021, ref.: 2 Sa 179/21).

Benefits for employers

• Save time with automated processes and digital archiving.
• Reduced administration and costs.
• Compliance with legal requirements through audit-compliant archiving.

Benefits for employees

• Online access to their own pay slips at any time.
• Reduce paper and environmental impact.
• Better overview of their own pay.

Digital payslips must contain the same information as the paper form, according to Section 1 of the Salary Certificate Ordinance. This includes:

• Employer details: name, address
• Employee details: name, address, date of birth, tax class, tax number
• Employment details: Start and, if applicable, end of employment, payroll period
• Composition of pay: gross pay, benefits in kind, capital formation benefits, company pension scheme, tax allowances, church tax, social security contributions, personal deductions, expense allowances, amount paid out.

The digital payslip must be in PDF or another common format and be easy to read. It should be sent over a secure channel to ensure privacy.

Move to digital now and benefit from greater efficiency, flexibility and sustainability! Need assistance?

We can provide you with comprehensive advice on digital payroll and help you implement it in your organisation. Get in touch with us today!

Payroll is often considered the heart of HR administration. This is where the gross and net salaries of employees are calculated and documented.

Here are the main elements of payroll accounting:

1. gross pay: the employee's total income before any deductions. It includes the basic salary as well as allowances, bonuses and premiums.
2. deductions: In addition to tax deductions such as income tax and church tax (if applicable), deductions include social security contributions such as pension, health, unemployment and long-term care insurance, and possibly company pensions and capital formation benefits.
3. net salary: the salary actually paid after deduction of all taxes and social security contributions.
4. fringe benefits: Bonuses, premiums, overtime, etc. (not included in regular gross pay).
5. absences and holidays: Sick days and paid and unpaid holidays also affect the payroll.
6. special payments: Christmas bonus, holiday pay, etc. (annual additional payments).
7. payroll period: monthly, quarterly or annually (payroll period).
8. personal information: Name, address, social security number, tax class (of the employee).
9. 9. employer contributions: In addition to the employee's social security contributions, the employer's contributions must also be taken into account.
10. 10. salary statement: Detailed breakdown of gross salary with all types of income. According to § 108 GewO, employers are obliged to provide their employees with the salary statement in text form. If the employee has given his consent, this is also permissible in digital form (LAG Hamm, judgement of 23.09.2021, ref.: 2 Sa 179/21).

Payroll is a complex process that needs to be carried out with precision and care, and errors can lead to high costs for companies and employees. That's why it pays to outsource payroll to an experienced service provider. You can be sure that everything will be done correctly and on time.

Want to outsource your payroll? Trust ARTS, an experienced HR agency with over 20 years of experience and expertise.

Payroll is the link between HR and Financial Accounting and plays a key role in the following critical HR areas:

• Employer branding: The correct and timely payment of wages and salaries is critical to employee satisfaction and motivation.
• Financial stability: Avoiding errors and penalties through accurate payroll is a guarantee of the company's financial health.
• HR management: Payroll provides important data and metrics for workforce planning and development.
• Expertise and legal certainty: Payroll requires in-depth knowledge of complex issues such as tax and employment law, as well as accounting principles. By working with experienced payroll experts, you can ensure that all processes are handled efficiently and with legal certainty.

With the right approach and professional support, payroll can be a powerful tool for your business.