Employer Consulting

Employer Consulting

Because comprehensive expertise can minimise interface risks

Payroll tax and social security law is highly complex: constant changes to legislation and the close links with employment law present daily challenges for businesses. It is no longer enough simply to be familiar with the current regulations. The real skill lies in precise implementation down to the finest detail – from the accurate classification of various remuneration components and tax-free allowances right through to the precise determination of tax assessment dates and contributions. In addition to the legal hurdles, there is an enormous administrative burden: Reports to tax authorities and social security bodies must be submitted without error, payroll systems must be technically sound, and all processes must be fully documented in preparation for upcoming tax audits. Things become particularly complex in special cases – such as cross-border activities, flexible employment models like ‘minijobs’, or sudden changes to collective agreements and legislation. To minimise the risk of costly liability claims, back payments and reputational damage, expert support is essential. This can only be achieved through perfectly coordinated processes between HR, Payroll, Finance, and experts in the field of employer consulting. 

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Our range of services 

BDO’s range of services essentially comprises three core areas: assessment, consultancy and design. 

Status quo

As part of our Employer Consulting service, we gain a detailed overview of your company’s current payroll tax situation and ensure that all payroll tax matters are aligned with social security requirements and other types of tax. 

We carry out bespoke risk checks to quantify potential tax and social security risks. Based on the findings, our Employer Consulting team develops recommendations for action to support your management team’s decision-making. 

We examine cross-border activities for the existence of permanent establishments, identify potential risks and derive recommendations regarding tax and social security law (e.g. in relation to organisational adjustments and the reduction of double taxation). 

Our Employer Consulting experts map out relevant payroll, HR and finance processes, optimise them and support you in implementing the newly designed processes. The focus here is on ensuring the best possible compliance with regulatory requirements and increasing efficiency. 

Based on the process analysis, we draw up detailed specifications for sustainable tax, social security and IT structures. These specifications are intended to serve as the basis for technical implementation and tendering processes. 

Through data mining and analytical evaluations, our Employer Consulting Team generates transparent key performance indicators for payroll tax and social security items and implements BI dashboards for efficient monitoring of results. This enables deviations to be identified at an early stage and allows management decisions to be supported by data. 

We assess the sustainability of existing IT and HR architectures in terms of scalability, data security and legal requirements, and derive measures for modernisation and harmonisation. 

Advice

Cross-border assignments involving your employees raise numerous issues relating to tax and social security law. We examine these and develop legally compliant solutions to minimise risks and double taxation. 

We assist with the preparation, submission and defence of applications for status determination before the authorities and draw up the necessary documentation. 

Our Employer Consulting Team supports you in developing practical policies (e.g. regarding secondments, home working arrangements and travel expense claims) and in ensuring the legally compliant implementation of these policies within your organisation. 

We develop workshops and training sessions tailored to specific target groups on relevant employer-related topics. These can be delivered either on-site or digitally (including accompanying materials and evaluation). 

A key component of our service is the analysis of employment contracts. The aim is to draft and implement contracts that are optimised for tax and social security contributions whilst also complying with the law. 

We develop modular remuneration models that combine variable components, incentives and benefits, and are efficient from both a tax and an employer’s perspective. 

Our experts from the Employer Consulting team advise on all aspects (such as implementation methods, funding models and communication) relating to occupational pension schemes – whilst keeping the regulatory framework in mind. 

We prepare payslips whilst taking into account statutory reporting requirements, income tax and social security contributions, and country-specific compliance. 

The country-specific allocation of remuneration components and the preparation of reliable payroll instructions for the consistent processing of multinational salaries require specialised expertise. We would be happy to assist you with this! 

Organisation

We keep track of relevant legislative changes and regulations in the field of HR and payroll and translate these into practical operational measures. 

We design, implement and audit (where already in place) tax and social security compliance management systems. 

Our services also include the preparation, follow-up, and support for tax and social security audits (including coordination of audit support, preparation of documentation, and assistance with negotiations with audit authorities). 

We analyse existing cost structures and develop tax- and social security contribution-optimised structuring options, taking into account compliance with employment law and operational feasibility. 

Our Employer Consulting Team advises on the legally compliant preparation and execution of voluntary disclosures and disclosures pursuant to Sections 41c and 153 of the German Fiscal Code (AO) (including risk assessment, documentation and coordination with tax advisers and the authorities). 

Our 360° approach:

As part of our 360° approach, we view issues such as contract drafting, remuneration schemes, payroll, mobility, tax and social security matters, as well as compliance and internal communication, as an interconnected system. The aim is to create interfaces between HR, Finance, Legal and operational functions, to reduce legal and operational risks, and to deliver practical, actionable measures. Standardised processes, transparent documentation and targeted training programmes support the implementation of sustainable governance structures. This approach allows for flexible adaptation to regulatory changes and provides a data-driven basis for optimising staff costs. 

Contact us!

Andreas Bode

Andreas Bode

Certified Tax Advisor, Partner, Tax & Legal, Employer Consulting
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Louisa Jonat

Louisa Jonat

Certified Tax Advisor, Partner, Tax & Legal, Employer Consulting
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