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Are you up to date on the latest reporting obligations for posted workers within the EU?

In our latest white paper, MGI Worldwide accountancy network member, Dr. Michael Grüne of BHP, Germany, talks about how the increased controls in European countries have made A1 certificates a much-noticed and time-consuming issue in recent months. 

In addition to clarifying the specifics of social security and tax law and the corresponding contractual provisions, the assignment of employees abroad also includes other (formal) aspects. In order to avoid wage dumping and discrimination against local employees, almost every country has its own registration procedure for foreign workers. Failure to comply with this procedure could result in severe penalties.

Definition of the term “posting”

A “posted-worker” is an individual who is sent by his employer to carry out his or her work in the territory of an EU / EEA Member State or Switzerland, other than the state in which he or she normally works, on a temporary basis. In contrast to EU mobile workers, posted workers only remain temporarily in the host Member State and do not integrate into its labour market.

A1 certificate for posted workers

The A1 certificate confirms that if an employee is working temporarily in an EU Member / EEA State or Switzerland, other than the one in which they pay their social security contributions, only the corresponding regulations of the sending EU Member / EEA State or Switzerland apply, instead of the social security regulations of the host state.

Consequently, the A1 certificate indicates which state provides insurance to the holder to avoid additional social security contributions becoming due in the host state.

For more details on the revised EU posted workers' directive, consequences of infringements, and recommended actions, read the complete white paper HERE.

For further information contact Dr. Michael Grüne, at michael.gruene@mgi-bhp.de, visit BHP's profile page or their firm website.

MGI Europe is part of MGI Worldwide is a top 20 ranked global accounting network with some 5,400 independent auditors, accountants and tax experts in over 260 locations around the world.

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