Greece Employer Of Record 2024/25

Afternoon everybody, I ‘d like to welcome you all here today…Greece Employer Of Record…

Papaya supports our worldwide expansion, allowing us to recruit, move and maintain employees anywhere

Accept the use of technology to manage International payroll operations throughout all their Global entities and are really seeing the benefits of the performance vendor management and using both um regional in-country partners and different suppliers to to run their Global payroll and utilizing the innovation then to access all that data in terms of reporting and managing all their workflows automations Combinations And so on so in an excellent position to join our chat today so right before we start there’s.

Worldwide payroll describes the procedure of managing and dispersing employee settlement across multiple nations, while complying with varied local tax laws and regulations. This umbrella term includes a wide range of processes, from collaborating payroll operations like calculating wages, withholding taxes, and dispersing payslips to dealing with diverse currencies, tax systems, and work laws worldwide.

International vs. local payroll.
Worldwide payroll: Handling worker payment throughout numerous nations, dealing with the complexities of various tax laws, work policies, and currencies.
Regional payroll: Processing payroll within a single country, sticking to its particular legal and regulatory requirements.
While regional payroll is easier due to consistent policies and currency, international payroll needs a more advanced approach to preserve compliance and precision throughout borders and different legal jurisdictions.

How does worldwide payroll work?
When managing global payroll, the objective is the same similar to regional payroll: to make sure staff members are paid accurately and on time. International payroll processing is just a bit more complex since it requires collecting and combining information from various areas, using the appropriate local tax laws, and making payments in various currencies.

Here’s an overview of global payroll processing steps:.

Information collection and debt consolidation: You collect employee info, time and participation data, assemble performance-related benefits and commissions, and standardize information formats for consistency across areas and worker types.
Compliance research study: You ensure the company is adhering to labor and any other relevant laws in each country (like GDPR in the EU, for example).
Payroll computation: You use country-specific tax rates and reductions, account for advantages and allowances, and change for exchange rates if paying in local currencies.
Review and approval: You conduct internal audits to make sure the precision of computations and get approval from the finance or HR department.
Payment processing: You prepare payments in the required format and start fund transfers through suitable banking channels.
Reporting: You create payslips, distribute them to staff members, and prepare reports for internal stakeholders, keeping paperwork for tax authorities and other regulative bodies.
After these payroll-specific steps, you might need to react to any employee queries and fix potential issues in payment processing, upgrade your records and systems for the next payroll cycle, and periodically (quarterly, for example) evaluate payroll information for patterns and potential optimizations.

Obstacles of worldwide payroll.
Managing a worldwide workforce can provide special challenges for businesses to take on when setting up and implementing their payroll operations. A few of the most pressing difficulties are below.

Tax policies.
Navigating the diverse tax guidelines of numerous countries is among the greatest difficulties in worldwide payroll. Non-compliance with regional tax laws, including social security contributions, can lead to significant penalties and legal issues. It’s up to organizations to stay informed about the tax commitments in each nation where they operate to ensure proper compliance.

Employment laws.
Each nation has its own set of labor laws and local laws that govern work practices, consisting of payroll. These can vary substantially, and services are needed to comprehend and abide by all of them to prevent legal concerns. Failure to abide by local employment laws can result in fines, litigation, and damage to your company’s credibility.

International payments and currency conversions.
Dealing with global payments and currency conversions is another major challenge in multi-country payroll. Paying staff members in their regional currency– specifically if you employ a workforce across various nations– needs a system that can manage exchange rates and transaction charges. Organizations also require to be prepared to deal with cross-border payments, which have different rules and requirements that can differ by area.

happening across the world therefore the standardization will provide us exposure across the board board in what’s actually occurring and the capability to manage our expenditures so taking a look at having your standardization of your aspects is exceptionally important due to the fact that for instance let’s state we have various rewards throughout the world but we have different names for them if we have a subcategory to classify them to be bonus offers then when we run our Global reporting we can get all the bonus offers around the world for 60 plus nations we might be running in and after that we have the ability to bring that to one currency exchange rate which is going to be key to be able to offer the presence and controlling the expenses that our company is looking to for us to support you can go to the next slide FIFA so what’s out there when we take a look at payroll services so of course we understand with big um or a big footprint in companies you might be doing it internal that could be done on internal software with um for example sap or success element so you’re utilizing their their software application engine to do behavioral processing you can utilize an outsourcer or a BPO model where you’re dealing with a company that’s going to you’re going to be designated an expert to do the processing for you one of the um most likely primary um common uh vendors out there for a long period of time that began in the in the 90s was the aggregator design and so the aggregator model’s been most likely with us for the last 15 years or two and that was kind of the model that everyone was taking a look at for Worldwide payroll management however what we’re finding is that the aggregator design does not particularly supply in some cases the versatility or the service that you might need for a particular country so you might may use an aggregator with a few of your areas across the world where others you might choose a BPO or Outsource it or perhaps even have some in-house if you have a large population let’s state for instance you have 2 000 workers in Brazil you may be searching for a a software.

particular organization is just appropriate to that specific um side so um how do you currently manage your Glo your multi-country payroll so be excellent to get a concept here of the audience and if we’re utilizing internal BPO aggregator or the mix of the regional in-country companies so I’ll give that a couple of um second side to so Travis what what do you believe um the attendees will be picking today um I’ll wonder I think DPO Outsource uh primarily because I believe that has actually constantly been an actually draw in like from the sales position but um you understand I could imagine we could see a bargain of In-House too yeah I think from the I think for we have actually seen that people are searching for a model that’s going to work so depending on um how it exists in your in the combination we may have that and after that naturally in-house supplies the capability for someone to manage it um the scenario specifically when they have large worker populations but I do I do think that um the regional and the accounting firms are becoming a lot more popular because we can connect it through with technology and I understand we’ve been um kind of for many several years the aggregator was the service the design that was going to connect it together however we’re finding there’s different various pieces to depending on who you’re working with and what nations you are sometimes you the aggregator model will work for you but you really need some knowledge and you understand for example in Africa where wave does a good deal of service that you have that local support and you have software that can look after the scenario so Eva what does the what does the uh poll results give us be able to see the outcomes.

Utilizing a company of record (EOR) in brand-new areas can be an efficient method to start recruiting workers, however it might also result in unintended tax and legal consequences. PwC can assist in recognizing and reducing danger.
When an organisation moves into a brand-new nation, utilizing an employer of record (EOR) to engage personnel typically makes good sense. Working through an EOR, the organisation does not require to establish a regional presence of its own for work law purposes. It has no liability to the employee as an employer, and it prevents all HR responsibilities such as needing to provide advantages. Running in this manner likewise allows the company to think about using self-employed specialists in the brand-new country without having to engage with difficult concerns around work status.

However, it is crucial to do some homework on the new territory before decreasing the EOR route. Every nation has its own taxation and legal guidelines around using people, and there is no assurance an EOR will meet all these objectives. Stopping working to attend to specific essential concerns can cause significant financial and legal danger for the organisation.

Examine crucial employment law problems.
The first vital concern is whether the organisation might still be treated as the real employer even when operating through an EOR. The crucial concerns to ask are:.

Does the EOR hold any needed licence to conduct its operations in the nation?
Does the EOR have a legal presence in the country?
Is the EOR acting in accordance with any labour financing laws existing in the country?
In some countries, an EOR– such as an employment agency– must be signed up with the authorities. Nations may also, or additionally, need an EOR to have a subsidiary business registered there. Also, labour lending rules might restrict one business from supplying staff to act under the control of another entity.

Such laws do not just have an influence on the EOR alone. The result of a breach could be that the organisation is dealt with as the employee’s actual employer, either right away or after a specified duration. This would have substantial tax and employment law effects.

Ask the important compliance questions.
Another crucial issue to consider is whether the organisation is positive that an EOR will comply with regional work law requirements and provide proper pay and benefits.

Even if the organisation is at no danger of being deemed to be the employer, it is still important from a reputational perspective that employees are engaged with appropriate terms and conditions. This will consist of questions such as compliance with any minimum wage and paid vacation requirements, working hours rules and pension provision, for instance. The organisation needs to likewise be pleased all tax and social security commitments are being fulfilled by the EOR.

One issue here is that if the organisation currently has staff members in a nation where it prepares to utilize an EOR, staff engaged through an EOR may have the ability to claim comparability of pay and benefits with those workers.

If the organisation has no experience or understanding of the appropriate rules in a particular nation, it needs to at least ask the EOR detailed questions about the checks made to ensure its work model is compliant. The contract with the EOR might consist of arrangements requiring compliance that can be kept track of.

Making all these checks may even end up being a regulative requirement. In future, organisations might be required to make disclosures of this details under ecological, social and governance reporting requirements including the EU’s Business Sustainability Reporting Directive.

Protect service interests when using companies of record.
When an organisation employs an employee directly, the contract of employment usually consists of organization security provisions. These might consist of, for instance, stipulations covering confidentiality of info, the project of copyright rights to the company, or the return of company home at the end of employment. There may even be post-termination obligations, such as bars on poaching clients or customers.

If utilizing an EOR, organisations will need to consider whether they require such protections– and, if so, how to protect them. This will not always be necessary, however it could be crucial. If an employee is engaged on jobs where substantial intellectual property is developed, for instance, the organisation will require to be careful.

As a starting point, organisations must ask the EOR whether its contracts with workers include such arrangements, and whether the arrangements show the laws of the specific country. It will likewise be very important to establish how those arrangements will be implemented.

Consider immigration problems.
Frequently, organisations look to hire regional staff when operating in a new country. But where an EOR employs a foreign national who requires a work permit or visa, there will be extra considerations. In many areas, only an entity with an existence in the nation can sponsor a visa, or the sponsor might need to be the entity for which the employee will actually be providing services. It is crucial to discuss this with the EOR ahead of time.

Get the basics right.
Before choosing how to proceed, organisations need to talk with potential EORs to develop their understanding and approach to all these concerns and risks. It also makes sense to carry out some independent research study into the legal and tax frameworks of any new nation. Business tax (permanent establishment) and personal withholding tax requirements will be relevant here. Greece Employer Of Record

In addition, it is essential to evaluate the agreement with the EOR to establish the allocation of liabilities between the celebrations. For instance, which entity will get any termination expenses or financial liability for failure to comply with necessary work rules?