How to shift the potential of payroll processing towards a more strategic function? The solution lies in the many benefits of payroll outsourcing.

Companies across the world may have different natures, goals and structure, but when it comes to business processes, decreasing the operational costs is quite the common desire. Outsourcing is often seen as a traditional method to stay within the budget, and while there is an emerging trend of putting more emphasize on value and innovation, the costs still remain as one of the most crucial factors when choosing a partner.

However, lower costs should not be the winning aspect when it comes to such sensitive functions as the payroll processing. When the vendor is chosen wisely, payroll processing can be shifted towards a more strategic, high-quality function of the company. Thanks to outsourcing, companies can gain access to unlimited possibilities for automation, best-breed IT solutions, continuous innovations, reduced risks and added-value solutions not only for the HR management team but, most importantly, for all employees.

These aspects gain more relevance when it comes to multi-country payroll processing projects – and their outsourcing with a payroll vendor. The most common challenges both the company and the vendor need to tackle, in all their complexity, are:

Cutting costs on multiple levels

The decrease of costs for companies counts among the benefits of payroll outsourcing on its own, but there are further notable mentions. Overhead costs are one to contemplate, mainly when considering all the expenses related to the maintenance of an internal payroll staff – their salaries, holidays, sick leaves, education or back-up services. A payroll vendor can unload this financial burden by processing the whole agenda, while in the meantime, the client benefits from economy of scale, saving time and money with the optimization and automation. Moreover, as the payroll vendor is responsible for monitoring the payroll-related legislation and informing the client about respective changes, the financially demanding training of in-house staff is no longer necessary.

Other advantages are related to more technical aspects, such as the licensing fees for payroll processing engines. In this case, the majority of the costs are borne by the vendor. Unless the client requires access to the system, there are no further expenses related to the maintenance and implementation of changes initiated by the rather frequent updates of payroll-related legislation.

Full accountability and compliance with legislation requirements

Touching upon the topic of legislation, a powerful telling argument for outsourcing the payroll function is full accountability and compliance, given that the agenda handles sensitive and confidential information. With the extremely challenging legislative requirements and frequent changes in the legislation related to payroll and labour law, shifting the responsibility to outsourcing is a safe bet for most companies. The payroll vendor is generally accountable for monitoring the local changes related to the provided services, incorporating them into day-to-day processes and maintaining the systems in 100% compliance with the current legislation – accurately, on time and with minimum possible costs.

While regular companies are very much dependent on the provider of their payroll engine whenever a change in legislation happens or a system customization is required, in case of outsourcing the payroll agenda, the vendor usually operates an internal IT team that is very familiar with the system functions and can process all complicated set-ups or advanced customizations internally, no matter the nature of projects or the volume of headcount. The amount of time and costs saved is very significant, considering that the delivery chain is simplified. Therefore, outsourcing not only diminishes the administrative burden of the client, but also eliminates the potential risks of non-compliance and resulting penalties from local authorities. The fact that the vendor is often liable for any damages caused by e.g. late payments of wages, via professional and extensive services covering the professional liability claim, may be considered as a convenient bonus.

Business continuity with reduced risks

Payroll outsourcing, besides all the mentioned qualities, can guarantee the continuity of processes under all circumstances, to distribute salaries on time and keep the level of employee satisfaction intact. Vendors have complex teams specializing in payroll, offering the possibility to back up another team member in case of unexpected absence. In addition, they have formalized business continuity and recovery plans, analysing and measuring different risk factors regularly and developing solutions for different situations. These precautions make sure that confidential data is safeguarded and can be retrieved even in case of natural disasters. The related processes are often certified and audited by internationally recognized certificates for quality and IT security management, such as ISO or ISAE.

Technology-driven solutions, customer-friendly experience

In conjunction with the added value, payroll outsourcing must be designed in a way so that it can fully replace the internal payroll department, with streamlined communication and ad-hoc support while maintaining the level of comfort employees and the management got used to, when having their payroll team onsite.  That is when the self-service functionality of the payroll and HR system comes into the spotlight.

As a part of the service delivery, the self-service portal offers the freedom to employees to handle numerous tasks on their own, without the need to ask for assistance their HR team. By granting login credentials to all employees, information about payslips, training materials, requests and many others become easily accessible. The portal also provides direct contact to a payroll accountant, who is ready to answer any incoming questions – liberating the internal HR team from the tasks  involved, enabling them to take up more strategic roles.

Shifting the focus to core company capabilities

The rocket science of business growth lays in the elimination of administrative burden and shifting the focus to core company capabilities. A self-service portal for employees and HR teams offers more efficient automated processes with higher transparency, with access to payroll and HR documents in a secure environment, access to pre-agreed payroll calendars and customized real-time reports, alerts and notifications, easing the management and supervision of the whole company.

Enhancing privacy compliance measures

Data security is a topic with always increasing significance, as technological advancements require a competitive system to keep sensitive information safe from inappropriate exposure. Notably, data breach is quite common and mostly caused by an internal team. The self-service portal limits the access to confidential materials and ensures extra security by hosting them on the systems of the payroll vendor. The access management is a strictly transparent and documented process, enabling a regular review of all accesses and actions.

The outsourcing of payroll processes reinvents the functions of vendors and companies. The responsibilities of service providers reach beyond the accurate, compliant and efficient exercise of the agenda, as they are taking up the role of innovators and leaders of new strategic values. Businesses, on the other hand, are expected to make the wise decisions and liberate their management from operations than can be fully automated, with more security and precision – for a lower cost.

Ready to unlock the benefits of payroll outsourcing?

Focus on growing your business while we take care of your payroll. Our payroll outsourcing services ensure compliance, accuracy and efficiency across multiple countries. All tailored to your structure, systems and people. From payslips to reporting, we handle it all, so you can save time, reduce risks and gain peace of mind.

Over the past years we have developed specialized international teams of consultants to provide full-range services related to transfer pricing. We have vast experience with hundreds of companies of various size, coming from many different sectors and countries.

Our experts help you to effectively address all aspects related to transfer pricing policy in your company and make sure you meet the documentation regulatory requirements. From initial review of transactions and examination of policies, through design of the most suitable transfer pricing strategy, to management of required documentation and dealing with statutory authorities, we are ready to cover full support you might need when dealing with such a complex matter as transfer pricing.

Check our comprehensive overviews on transfer pricing in Europe – more precisely, the local regulatory frameworks in the Czech Republic, Hungary, Poland, Romania and Slovakia. In our free eBooks, which are available for download, you can read more about the arm’s length principle, the documentation including its types, general rules and deadlines, methods of transfer pricing documentation, advance pricing agreements and penalties.

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Keeping up to date with the latest legislation in the field of taxes may be difficult, not to mention the ever-changing deadlines and obligations. To make it all a lot easier, our experts created tax calendars for Europe in an easy-to-follow, comprehensive format for 2025, including all the necessary dates and duties you should respect in order to avoid penalties and sanctions. Download our free calendars to have everything tax-related at a hand’s reach from the Czech Republic, Hungary, Poland, Romania, Slovakia and Ukraine.

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Stay on top of the deadlines from our tax calendar for Europe

Missing a deadline can lead to penalties, but with Accace, you stay one step ahead. Our local experts offer tailored support for filings, planning and advisory, helping you meet every requirement in line with the Romanian tax calendar. Explore our full range of tax advisory and compliance services.

Labour law and employment is an integral part of every company, but on top of that, the complexity of HR administration has grown significantly in recent times. With the increase of expansions and global mobility, enabled by liberated markets, labour law in Europe, along with local legislation and the differences between country regulations, gains even more importance.. To tackle all compliance issues and gain proper navigation in labour-law processes, a comprehensive support is a must, mainly for companies who operate in multiple countries. We provide not only consultancy concerning employment-related matters or GDPR but also offer the design and implementation of tailored internal processes, policies, procedures, standards and documentation related to client-specific employment relationship.

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Expert support for labour law in Europe for businesses

Understanding and applying labour law in Europe is essential to maintaining a compliant and productive workplace. At Accace, we provide expert labour law consultancy to help you manage employment relationships, contracts, internal policies, and day-to-day HR administration. With our support, you can confidently handle your employer obligations while staying aligned with local regulations.

Global company formation is a key step for businesses aiming to embrace expansion and globalization. However, establishing, developing, and maintaining a business on an international level demands significant attention, time, and effort due to variations in local regulations and ever-changing legislative frameworks. With an immense network of local experts and advisors, we support your company formation in Europe and ensure full compliance with local and global requirements in all jurisdictions, while also guiding you in selecting the proper form of business.

Besides the most common forms of businesses, such as the limited liability company or joint stock, there is a broad variety to choose from, so it is crucial to be aware of the benefits and drawbacks related to them. Our free guidelines on company formation in the Czech Republic, Hungary, Poland, Romania and Slovakia provide the necessary insight into the legal forms of businesses, the minimum capital and contribution needed, requirements on minimum documentation, shareholders, the process of registration, including a general overview of corporate taxes, duties, fees, penalties, investment incentives and other related aspects.

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Explore also our guide for international expansion, which contains an useful overview of 15 countries for investors and gain a concise yet insightful overview of global company formation facts.

Simplify global company formation with Accace

Expanding your business internationally can be complex, but it doesn’t have to be. Our global company registration services are designed to take the stress out of the process, offering tailored solutions to ensure your success in any market. With our expert guidance, you’ll gain the confidence to navigate local regulations, secure compliance, and choose the ideal corporate structure—all while saving time and resources.

Let us help you establish your business globally with ease and precision.

The economic stability of the EU provides a solid ground for businesses to get into motion. The growth of most companies actively relies on the import or export of goods and services, but these actions call for an internal mechanism that ensures neutrality and a system that works in the interests of member states in all aspects of cross-border operations. The current system of VAT in Europe was built on this need and presently, member states are subject to regulations that, among others, avoid double taxation and require the taxes paid only on the value that is added at each stage of production and distribution.

To provide you with practical information on the matter, our experts prepared an interesting overview of the local VAT regulations from the Czech Republic, Hungary, Poland, Romania and Slovakia.

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Get expert support for VAT in Europe

Dealing with VAT in Europe can be complex, especially with frequent legislative updates and detailed reporting obligations across multiple countries. Accace offers comprehensive international VAT advisory services to help you manage VAT registrations, filings, audits and day-to-day compliance with ease. Our in-country experts ensure your obligations are met accurately and on time, so you can focus on growing your business with confidence.

Compliance in the fiscal areas is crucial for any company who wishes to operate a successful business. However, local tax systems may be difficult to follow due to their complexity, mainly in case of a multi-country presence of a corporation. Different obligations and deadlines on direct or indirect taxes, regulatory matters or tax authority enquiries round up to a sensitive agenda in need of expert approach.

Make better decisions with our tax guidelines for Europe

Our local tax departments prepared comprehensive tax guidelines for Europe, introducing local taxes form the Czech Republic, Hungary, Poland, Romania, Slovakia and Ukraine, to help you better understand the local specifications and gain an insight into statutory obligations. The eBooks available for download go into detail, among others, on matters related to corporate income tax, withholding tax, transfer pricing, personal income tax, property tax, motor vehicle tax, value-added tax and taxes on capital. Be well-equipped with the necessary knowledge to make better decisions for your business in the EU market!

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How Accace can support you with taxes in Europe

While our tax guidelines for Europe give you a solid starting point, Accace goes further with dedicated tax advisory in Europe and in over 60 locations across the globe. Our team provides tailored support to help you understand local tax rules, ensure full compliance, and identify opportunities to optimize your tax setup. Whether you’re launching a new venture or managing an established business, we’re here to simplify your tax obligations.

The gross monthly salary under permanent employment is subject to multiple taxes and contributions paid by the employer and the employee. Therefore, its important to calculate the net income in order to get a good understanding of earned wages after taxes, taking into consideration also some possible tax bonuses for children or non-taxable parts of the tax base. Our experts prepared salary calculators for Europe, to help you calculate the net income in the Czech Republic, Hungary, Poland, Romania, Slovakia and Ukraine, and to provide a quick indicative reference of gross and net earnings.

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An Advance Pricing Agreement (APA) is an agreement between a taxpayer and a tax administrator that aims to avoid any transfer pricing disputes, by determining the arm’s length price for a controlled transaction.

Our infographic on advance pricing agreements is a sum-up of characteristics of APA in Czech Republic, Hungary, Poland, Romania and Slovakia.

Availability and validity

Fees for APA

CZECH REPUBLIC

Administrative fee – CZK 10,000 (approx. EUR 390)

The amount of the fee depends on the number of transactions assessed, or on the number of permanent establishments; regardless of whether it is a unilateral, bilateral or multilateral APA.

HUNGARY

Depending on the number of jurisdictions taking part in the APA, filing fees vary as follows:

Unilateral APA – HUF 8,000,000 (approx. EUR 21,000)

Bilateral APA – HUF 12,000,000 (approx. EUR 31,000)

Multilateral APA – HUF 12,000,000 (approx. EUR 31,000)

Act CL of 2017 on the Rules of Taxation effective from 1 February 2024: (1) The fee for the procedure to establish the arm’s length price shall be HUF 8 million in unilateral proceedings and HUF 12 million in bilateral or multilateral proceedings. Payment of the fee in instalments or deferred payment shall not be permitted.

In the case of proceedings for APA extension or modification, the fee is 50 percent of the fee paid in the original procedure. If the APA request is rejected or withdrawn, the HTA returns 85 percent of the fee already paid pertaining to the APA procedure. The pre-filing consultation is subject to an administrative fee. The fee for a pre-filing consultation is HUF500,000 (approx. USD1,780) per each consultation.

POLAND

1% of the value of the transaction that is the object of the agreement. However, in the case of:

Unilateral APA:

• concerning domestic entities – min. PLN 5,000 (approx. EUR 1,200) and max. PLN 50,000 (approx. EUR 11,800)
• concerning foreign entity – min. PLN 20,000 (approx. EUR 4,700) and max. PLN 100,000 (approx. EUR 23,500)

Bilateral or multilateral APA – min. PLN 50,000 (approx. EUR 11,800) and max. 200,000 PLN (approx. EUR 47,000)

Renewal fees are half of the amount of the fee for the renewed APA.

ROMANIA

For large taxpayers and other taxpayers with consolidated value of transactions higher than EUR 4,000,000:

• EUR 20,000 for the initial APA
• EUR 15,000 for amending the initial APA

For other taxpayers and consolidated value of transactions lower than EUR 4,000,000:

• EUR 10,000 for the initial APA
• EUR 6,000 for amending the initial APA

SLOVAKIA

Unilateral APA – EUR 10,000*

Bilateral and multilateral APA – EUR 30,000

*half amount applies to the taxpayer with the index of tax reliability „high“

Common aspects

Application responsibility: The tax administrator issues the APA on the basis of an application filed by the taxpayer. In other words, the tax administrator cannot issue the APA “ex officio”.
Language options: The application for the APA, to which the TPD shall be enclosed, too, must be filed in local language only*.

*except Hungary (where English, French, and German languages are also accepted) and Slovakia (where TPD might be accepted also in other language , however the tax authority might additionally request for the TPD submission also in Slovak language)

Legally recognised corporations in Europe take on many forms. We decided to shed some light on useful legislation insights, general incorporation requirements and characteristics of a LLC or Limited Liability Company in Europe.

Moreover, we decided to compare the legal aspects of LLCs in the Czech Republic, Hungary, Poland, Romania, Slovakia and Ukraine to provide a comprehensive yet clear overview of the requirements in the region.

Dive into the general features of LLCs, such as the basic characteristics of founders, minimum capital nature and limits, types of contributions and payment deadlines, guarantees required by shareholders, incorporation time, obligation of VAT registration, and much more.

General features of a limited liability company in Europe

Founders

Minimum capital and contribution

Registration procedure duration

Court fee