Employer payroll changes in Europe due to COVID-19

April 23, 2020 | David Daly 3 Mins read

Governments across Europe have been responding to the economic impact of COVID-19 and publishing important information for employers, employees, and payroll professionals.


There has been changes to current legislation for a temporary period to help alleviate some of the problems around employment due to the damaging consequences of the global pandemic.

Below, you can find a summary of some of the key updates from Germany, France, and the Netherlands along with links to further information.

Germany

A number of new measures have been introduced by the Federal Ministry of Finance in Germany to help businesses and employers:

  • Employers can take advantage of tax payment deferrals -applications will be accepted up to 31 December 2020
  • Measures to collect overdue tax payments will be suspended until the end of the year
  • Tax prepayments and corporation tax adjustments can be requested
  • Employer social security contributions can be deferred on request between March and May 2020 (initially)

To read more on measures introduced, CLICK HERE.

France

France has introduced some important relief measures in response to the COVID-19 crisis in order to assist employers who may be struggling:

  • Social security contribution payment deadlines have been extended for another 3 months
  • A partial activity scheme is in place whereby employers can pay staff at least 70% of their wages. The employer then receives a lump-sum allowance covering this payment.
  • Expatriates who return during the coronavirus crisis will no longer face the mandatory waiting period of 3 months and instead will be granted immediate access to the health-care system

To read more on measures introduced, CLICK HERE

The Netherlands

The Netherlands introduced some measures to assist employers who are experiencing difficulty with paying their employees, along with other measures;

  • Emergency Bridging Measure: this is a temporary scheme where wage claim compensation will be dependent on the turnover loss stated by the employer.
  • The scheme will run for 3 months but may be extended after a review.
  • Late payment fees for tax are now removed
  • Extensions have been granted for VAT, income tax, payroll tax and corporate tax.

To read more on measures introduced, CLICK HERE
Disclaimer: Payslip is an automation and integration technology partner to global payroll. We are not a government agency. All payroll information relating to COVID-19 is subject to change and updates. You are encouraged to visit official government websites for the latest information.

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Using Payslip, we can manage all our payrolls across nine in-country vendors on one platform. When the global Covid-19 pandemic arose, it was not an issue from a payroll perspective, and critically getting everyone paid. The Payslip platform enabled continuity for our international payroll service including the fast and seamless implementation of the Payslip Employment Self Service during this time.

Colin Smith

Payroll Manager, LogMeIn

With business and employee growth rates of above 50%, we rely on our vendors to deliver on time, every time. Payslip’s workflow automation, enables Phorest to manage our payroll provider process – data driven, real time and transparent. Payslip saves us time so we can focus on our business growth.

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International Payroll Manager, Phorest