This article provides an overview of Personio Payroll, our ITSG-certified all-in-one solution that combines HR and payroll in one place. Through built-in compliance and real-time data synchronization, we ensure that all payroll data is correct from the very beginning.
If you would like to use Personio Payroll, you can receive further information and individual consultation from our Growth & Success Team (page available in German only).
What are the benefits of Personio Payroll?
With HR and Payroll, all in one place in Personio, you finally have Payroll as it should be. Instant, Accurate and Effortless.
With our ITSG-certified Personio Payroll, you can run Payroll in seconds with one click, the rest happens automatically: Information relevant to payroll accounting is created and checked automatically, and legal communication with authorities and social insurance is also handled by the system.
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Instant – Run Payroll in seconds, with HR and Payroll, all in one place in Personio.
HR and salary data is automatically configured, consolidated and synced in real-time with payroll. You’re always ready to run payroll.
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Accurate – Your payroll is correct the first time with automatic input validation.
The software knows all the rules and regulations you need for payroll, so you don’t have to. Have accurate and complete payroll data from the start.
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Effortless – Compliance is streamlined, preview payslips in real-time post any changes.
Changes flagged by authorities are automatically built in. Payslips, relevant documents and legal communication are also handled automatically with authorities and social security.
Functions
Personio Payroll offers the following functions:
Industry Sectors
Personio Payroll is a payroll tool that was developed specifically for companies in the following industries:
- Service providers
- Consulting companies
- IT companies
- Companies in trade
Note
Personio Payroll is currently not offered for the following industries: agricultural operations, public services, construction/construction labor, maritime transport.
Payroll
With Personio Payroll you can manage your company and employee data in one place and carry out payroll for multiple legal entities (companies). The integrated validation of data prevents incorrect entries and ensures compliance with legislation. Social security numbers and tax information are automatically retrieved and social security contributions are estimated, so your payroll can be processed in real time. In case of any retroactive changes, payroll corrections are easily handled thanks to the automatic data synchronization.
Salary types
Depending on your plan, the following compensation types can be created and processed in Personio Payroll:
Salary type | Standard | Pro |
Salaries | ✅ | ✅ |
Hourly wages | ✅ | ✅ |
Advance payments | ✅ | ✅ |
Overtime (not linked to time tracking)* | ✅ | ✅ |
Shift allowances (not linked to time tracking)* | ✅ | ✅ |
Partially retired | ❌ | ❌ |
Credit balances |
❌ | ❌ |
Company pension scheme (group contracts, direct insurance, old contracts)* | ✅ | ✅ |
Company pension scheme (duplication process) | ❌ | ❌ |
Company pension scheme – several per employee* | ❌ | ✅ |
Severance packages | ✅ | ✅ |
Bonuses/premiums/extra payments | ✅ | ✅ |
Food allowances | ✅ | ✅ |
Travel allowances | ✅ | ✅ |
Company car/bicycle* | ✅ | ✅ |
Foreign value taxation |
✅ | ✅ |
Yearly pass | ✅ | ✅ |
Inflation compensation premium | ✅ | ✅ |
Child care allowance | ✅ | ✅ |
Kurzarbeitergeld (KUG)* | ❌ | ❌ |
Net to gross calculation | ❌ | ❌ |
Flat-rate taxed remuneration | ✅ | ✅ |
Benefits in kind | ✅ | ✅ |
Simulations* | ❌ | ✅ |
Paid Vacation | ✅ | ✅ |
Capital-forming benefits | ✅ | ✅ |
Christmas bonuses | ✅ | ✅ |
Notes
▶︎ Further information about the Standard and Pro services of Personio Payroll can be found here.
▶︎ *May require additional data or efforts on the part of the customer.
Absences
The following absence types can be created and processed with Personio Payroll:
Vacation | ✅ |
Unpaid vacation | ✅ |
Sickness (with and without sick pay) | ✅ |
Injury benefits | ❌ |
Interim payments | ❌ |
Federal Volunteer Service | ❌ |
Parental leave | ✅ |
Leave due to sick child | ✅ |
Maternity protection | ✅ |
Lawful/unlawful strike | ✅ |
Unexcused absence | ✅ |
Legal procedures
The following legal procedures can be created and processed with Personio Payroll:
AAG (Expenditure Compensation Act) | ✅ |
EEL (electronic compensation for reduced income) | ✅ |
eAU (electronic certificate of incapacity for work) | ✅ |
A1 (standard cases)* | ✅ |
* May require additional data or efforts on the part of the customer.
Employees
The following types of employees can be created and processed with Personio Payroll:
Mini-jobbers (PGS 109) | ✅ |
Employees (PGS 101) | ✅ |
Trainees (PGS 102, 121) | ✅ |
Employees in partial retirement (PGS 103) |
❌ |
People with a disability working in a recognized workshop (PGS 107) | ❌ |
Managing partners | ✅ |
Cross-border commuters | ❌ |
Contractors subject to mandatory pension insurance (PGS 104) | ❌ |
Short-term employees (PGS 110) | ✅ |
Persons performing an internship (PGS 105) |
✅ |
Pensioners (PGS 119/120) | ✅ |
Student trainees (PGS 106) | ✅ |
Reporting system
The following reports are sent automatically:
Automatic sending of reports to social insurance companies and contribution statements (after payroll approval) | ✅ |
Wage tax returns, and pay statements sent automatically | ✅ |
Wage statements automatically sent to accident insurance companies | ✅ |
Automatic ELStAM registration of new employees. | ✅ |
Documents
The following documents are provided with Personio Payroll:
Remuneration statements | ✅ |
Electronic company audits | ✅ |
Contribution statements (accident insurance) | ✅ |
Contribution statements (health insurers) | ✅ |
Gross – net list (monthly/yearly) | ✅ |
Booking report in accordance with SKR03/04 in xls or csv format | ✅ |
Reimbursement requests in accordance with AAG (U1/U2) | ✅ |
Separate notification 57 |
✅ |
Lohnkonto | ✅ |
Wage tax returns | ✅ |
Certificates of wage tax deduction | ✅ |
SEPA for wages and salaries, pensions, capital-forming benefits, social security contributions, income tax | ✅ |
Social security reports (DEÜV) | ✅ |
Annual social security reports |
✅ |
Annual accident insurance reports | ✅ |
Certificates
Electronic certificates of incapacity (eAU retrieval) | ✅ |
A1 (for German employees – standard cases) | ✅ |
Prior conditions query | ✅ |
rvBEA BEEG | ✅ |
rvBEA ZUZA | ✅ |
The ITSG certification
What is the ITSG certification?
The ITSG is the information technology service center of the statutory health insurance. It develops and optimizes the electronic data exchange on behalf of all the top organizations of statutory health insurances and is specialized in secure digital communication between service providers, employers and health insurers. The ITSG certification is the highest mark of quality issued by statutory health insurance companies.
In Germany, only audited and ITSG-certified payroll solutions may be used for the automated digital exchange of data in the health and social system. The ITSG checks whether the software complies with the legal requirements for the various procedures for the reporting and payment of social security contributions.
The ITSG core team consists of representatives from the pension, accident and unemployment insurances. They check our calculations and check that all data sent to the social security authorities is correct.
Personio Payroll has received the ITSG certification
We have worked extensively with ITSG over the past few years to ensure that Personio Payroll is certified by ITSG. The solution now enables automated, direct communication with social security providers, without time-consuming manual processes.
With Personio Payroll's ITSG certification, you can count on our immediate, accurate and effortless payroll processes. You can now:
- Communicate automatically and directly with social security providers, without time-consuming manual processes .
- Ensure that each individual payroll is processed correctly. You can, for example, prepare business travel within the European Union, by simply requesting A1-certificates digitally with every social insurance. This fully digital workflow has also been certified.
- Access streamlined compliance processes in the Compliance tab, including all information that has been exchanged with social insurance. You can also get immediate support for social insurance checks. With the euBP certification (electronically supported company auditing), we support you by providing an export file that we send directly to the pension insurance.
This is a major milestone for Personio. Personio fulfilled more than 600 pages of requirements and 1000+ criteria of the ITSG within one year.
What does ITSG certification mean for you?
ITSG certification is the highest badge of quality in Germany for payroll solutions. It sets strict quality standards and allows for seamless integration with social security providers. All information relevant to social insurance, for example sick days, changes of employment and contribution payments are transmitted directly to the social insurance provider responsible via Personio Payroll. This allows for even more automation while ensuring accuracy and compliance.
Personio Payroll's ITSG certification allows payrolls to be run directly in Personio without the need for an integration with another external payroll provider. This means you can run correct payroll in seconds with the click of a button, even if you aren't a payroll expert. These are your benefits:
- Process in seconds: Start the payroll process with a click of a button, and the rest is done automatically.
- Always correct data: Personal and salary data is automatically synchronized with the payroll. Automatic data validation also ensures that all payroll data is correct.
- Full compliance: Payroll-relevant information is created and checked automatically, as well as all mandatory communication with authorities and social security.