Registering as an employer in another EU country
If you hire employees in another EU country, you need to register with the local authorities as an employer. This is to ensure that you comply with local labour laws, including social security contributions and taxation. You should be aware of the following:
- employer registration process: Each country has its own registration procedures, and employers must contact the relevant authorities (often social security institutions or tax authorities) to register as an employer.
- employer identification number: After registering, employers often receive an employer identification number to use for social security and tax-related filings.
Registering employees for social security contributions
After registering as an employer, it is necessary to register the employees in the country where they will work to ensure that they are covered under the local social security system. Here's what you need to consider:
Social security contributions
Employees working in an EU country are typically subject to the social security rules of that country, and employers are responsible for withholding and remitting both the employer's and employee's contributions. Each country has different rates and contribution requirements covering:
- health insurance
- pension contributions
- unemployment insurance
- other social benefits (e.g., parental leave, disability insurance)
Registration process
- You must notify the local social security authorities about new employees, providing details such as the employee's personal data, start date, job description, and salary.
- The process and timeline for registering employees can vary, and in some countries, it must be completed before the employee begins working.
Warning
Under EU law, an individual can only be subject to one country's social security system at a time, even if they are working across borders. The applicable country is typically determined by the nature and location of the employee's work.Special cases
- Posted workers: For employees temporarily sent to work in another EU country (posted workers), the employer generally does not need to register as an employer in the host country. The employee remains covered by the social security system of the sending country, provided the posting does not exceed 24 months and certain conditions are met. Employers must request an A1 form to certify the social security legislation that applies and confirm that the worker has no obligations to pay contributions in another EU country
- Cross-border workers: Employees who work in one EU country but live in another are generally subject to the social security rules of the country where they work. Employers should verify specific circumstances with the relevant authorities, as exceptions may apply.
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