Running payroll in Germany through your own entity
EREditorial team · Updated 14 Oct 20268 min read14 providers compared19 sources
€7,099 employer cost a month on your own payroll, €70,000 salaryNot all-in: what it leaves out is under the cost table.
≈22% employer contributions on top of salary
6 set-up and registration steps
4 employer registrations
To pay staff through your own German entity, for example a GmbH, you form the company, notify the authorities when the business starts, get an employer number and report each new employee to a health insurer. Employer contributions add ≈22% on top of salary.
Short answer
For a GmbH, the company comes first: notarised articles, paid-in share capital and an application to the commercial register (Handelsregister).
When the business starts, the trade office is told at once, the accident insurer within a week, the municipality or tax office within a month.
With an employer number from the Federal Employment Agency, each new employee is reported to a health insurer, which collects the contributions.
Contributions fall due inside the month worked; wage tax follows by the tenth day after the period.
On this page
What has to happen before the first payroll
The order follows what triggers each duty: the company, then the start of the business, then the first hire. Three steps form the GmbH and end with the application for entry in the commercial register (Handelsregister) at the court of its seat. Before that application, at least half of the minimum share capital has to be paid in[1]. The set-up table gives no duration for these three steps.
The day the business starts sets three clocks running. The trade office has to be notified at the same time (Gewerbeanmeldung)[2]. The accident insurance body (Berufsgenossenschaft) has to be told within one week, though a trade registration filed within that week counts as that notice[3]. The municipality or tax office is told within one month[4].
The last registrations are tied to people rather than to the company. Before any report, the employer needs an employer number (Betriebsnummer) from the Federal Employment Agency[5]. Then, at the start of each employment, the employer reports the insured employee to the health insurer[6], and that insurer is the collection office for the total social-security contribution[7]. Each body and what it expects is listed under employer registrations.
Running payroll month to month
Each month has two payment dates, and the contributions come first. Social-security contributions are due in the expected amount on the third-to-last bank working day of the month the work was done[8], so the amount is settled while that month is still running. Wage tax, which the employer withholds from pay, follows: the Lohnsteuer-Anmeldung is filed electronically and paid by the tenth day after the period[9]. Every payment of pay comes with a statement in text form[10]. The deadlines sit side by side under payroll obligations.
Accident insurance is not in the cost table. The contribution is payroll times hazard class times contribution rate[11], and the 2025 figure of EUR 1.08 per EUR 100 of payroll is an average across insurers[12], so a company’s own rate depends on its hazard class.
Report the start of the business to the accident insurance body within one week; a trade registration filed within that week counts as this report.
0–1
Employer registrations
Employer number (Betriebsnummer)
To take part in the social-security reporting procedures, the employer applies electronically to the Federal Employment Agency for an employer number for each of its establishments.[5]
Health insurer (collection office)
The health insurer is the collection office for total social-security contributions; the employer reports each insured employee to it at the start of employment.[6][7]
Accident insurance body (Berufsgenossenschaft)
Notified within one week of the start of the business; a trade registration filed within that week counts as the notice. The contribution is payroll x hazard class x contribution rate; the average in 2025 was EUR 1.08 per EUR 100 of payroll.[3][11][12]
Tax office registration
Opening a business must be notified to the municipality or tax office within one month.[4]
Running payroll: deadlines and filings
The employer withholds wage tax and pays it to the tax office with the Lohnsteuer-Anmeldung.[9]
Excludes statutory accident insurance, set by industry and risk class; the U2 levy varies by health insurer.
Global payroll providers
All 14 global payroll providers we score: those working in Germany first, then the rest, each by our global payroll score. Working in Germany: 11 (2 by their global payroll coverage list, the rest inferred from their EOR coverage). How we score
Enterprise teams and small and growing businesses (SMEs), in RemotePass's own words
Not for
Buyers who must review EOR contract terms up front: no EOR agreement is public
Top pro
EOR from $349 per employee a month with tax included; 13 of 20 other EOR prices in dollars start higher
Top con
No EOR agreement is public: the Terms say EOR runs under a separate Consultant Agreement "available on the Site", which we did not find. The public legal documents are the Terms, the Privacy Policy and the Acceptable Use Policy
Companies from startups to enterprises, going by Multiplier's segment pages
Not for
Buyers who need the deposit amount before signing: Multiplier calculates it per contract
Top pro
Own SOC 2 (Type I and II), SOC 3 and ISO 27001:2022 on its security page; the AWS certifications listed there are kept apart as the host's
Top con
The "from" prices assume an annual contract. Monthly EOR costs $499 on Core and $559 on Growth, about 11% of countries are priced differently, and compliance-mandated add-ons come on top of EOR and COR
Companies from startups to enterprises: Playroll has pages for each, and its case studies include startups under 100 staff and mid-market firms of 100 to 1,000
Not for
Contractors who want to be paid other than through Payoneer, the only payout route Playroll uses
Top pro
Its own country pages document EOR hiring in 151 countries + 6 territories, against a claim of 180+
Top con
A refundable deposit of one month's salary per EOR employee; the unused part comes back within two months of the last working day, or once claims are settled if that is later
Startups, growing companies and enterprises, the three segments Pebl writes a page for
Not for
Buyers who need a Contractor of Record: we list Pebl for contractor management, not COR
Top pro
Own SOC 2 Type 2 report and ISO/IEC 27001:2022 certificate, both on Pebl's security page
Top con
No live support channel named: Pebl lists its Alfie AI assistant, in-house experts and a Help Center; its pages say 24/7 support and do not say who answers
Startups, scaling companies and enterprises, the three groups Native Teams writes for
Not for
Buyers who want to read the EOR or COR agreement before talking to sales: the terms of service are the only contract text online
Top pro
EOR from $99 per employee a month, below all 20 other per-employee EOR prices in USD we compare
Top con
The terms of service are the only contract text online. The EOR and COR agreements are not published, and the terms say a separate signed contract takes precedence
Small businesses, including teams under 10 employees, startups and enterprises: the segments Rippling has pages for
Not for
Buyers who want to compare an EOR price before a sales call
Top pro
Contractor onboarding in 185+ countries and payments in 50+ local currencies, per its contractor page; 160 countries + 2 territories are documented here
Top con
No price for EOR, contractor management or global payroll: the pricing page asks for a custom quote
Crypto and web3 teams paying contractors in stablecoins or crypto, a segment Rise names (startups, web3 startups, DAOs, global agencies)
Not for
Companies that need an EOR in countries beyond the US and the UK today
Top pro
Prices are published per head: $49 a contractor a month (discounts for startups and non-profits), $299 for Agent of Record, $399 an employee for EOR
Top con
EOR is documented in 2 countries (US, UK) against a claim of 90+. The parent, Rise Works, Inc., is on the GLEIF register; no own entity is documented in either country
4.2Our score 4.2 of 10Limited dataOur global payroll score
Global payroll price
Custom quote
ServicesEOR · Payouts · Contractors · Payroll
Best for
Startups, SMBs, agencies and enterprises: the segments Remozo names for its contractor product
Not for
Buyers whose security review asks for SOC 2 or ISO 27001 held by Remozo itself
Top pro
Contractor payouts claimed in 190+ countries; 98 are listed one by one in Remozo's help centre
Top con
Contractor plan from 3% per payout: for contractor payouts, 2 of the 6 other percentage prices we compare are lower and 1 the same. The contractor page says from 1.5%, which we do not score
One hire on €70,000 a year, through your own entity and through an EOR, from the figures on this page and the EOR page. The own-entity cost leaves out what running the entity costs, so the two columns are not like for like.
Germany: own entity and EOR for one hire
Compared
Own entity
Employer of Record
Before the first hire
6 set-up and registration steps
No entity: the EOR’s entity employs
Employer cost a month, before any provider fee
€7,099
€7,099
Provider fee a month
–
€299 a month (one provider, EUR); US$99 to US$699 a month (17 providers, USD)
Fewer than 3 providers publish a fee in EUR, so no total with the fee is given; fees in other currencies are not converted.
Neither figure is all-in: both leave out the costs named under the cost table.
By the tenth day after the period. The Lohnsteuer-Anmeldung is filed electronically and paid by then; the period is the month, or the quarter or year when the prior year's wage tax was small.
When are social-security contributions due in Germany?
On the third-to-last bank working day of the month the work was done, in the expected amount. They are paid to the health insurer, which acts as the collection office.
How much share capital does a German GmbH need?
At least EUR 25,000. At least half of that minimum has to be paid in before the company is registered.
What does accident insurance cost an employer in Germany?
It depends on the hazard class: the contribution is payroll times hazard class times the contribution rate. The 2025 figure of EUR 1.08 per EUR 100 of payroll is an average across insurers, not any one company's rate.
Does an employer in Germany have to issue payslips?
Yes. The employee gets a statement in text form each time pay is paid.
Works in Germany
