Employer of Record in Romania: hire locally without setting up a company
In short: If you want to hire employees in Romania but do not have a local company or your own payroll and HR administration setup, our Employer of Record service can help you manage the employment relationship locally. We take care of employment documents, payroll, taxes, HR records and ongoing administration, so your company does not have to build a local infrastructure from scratch.
Contents
Hiring in a new country involves more than paying a salary
- Employment contracts and HR documents must comply with the rules applicable in Romania.
- Salaries, taxes and social contributions must be calculated, reported and paid on time.
- Leave, salary changes, benefits and other employment matters need to be managed throughout the employment relationship.
- Ending an employment relationship requires a separate legal assessment and cannot simply be treated in the same way as ending a commercial contract.
Send us the position, expected salary and preferred start date. We can prepare an estimate of the total cost.
What is an Employer of Record
An Employer of Record service is used by companies that want to build a team in another country without immediately setting up their own local employment, payroll and HR administration structure.
In practice, we manage the local employment relationship and the related administrative processes. We enter into a commercial services agreement with the client company that sets out the services, costs and responsibilities of each party.
The service can be used for a single employee or for a larger team.
Important: the structure of the arrangement should be reviewed before the employment starts. The nature of the work, how the activity is organised and the responsibilities of each party can affect the documentation and the appropriate setup.
When the service is useful
Your first hire in Romania
Your company has found a candidate in Romania but does not yet have a local entity and does not want to set one up for a single employee.
Building a local team
You want to grow a team in Romania gradually and avoid, at least initially, the cost and administration involved in running your own local entity.
Remote teams
You need professionals in IT, finance, marketing, customer support, consulting or other roles that can be performed from Romania.
Simpler local administration
You already have people working in Romania and want a single provider to handle payroll, HR documents and day-to-day employment administration.
What the service includes
Employment and onboarding
We prepare the documentation required for employment and coordinate the administrative formalities before the employee starts work.
Payroll
We calculate salaries and monthly compensation items and manage the payroll process.
Taxes and payroll reporting
We calculate payroll-related liabilities and manage the relevant filings and payments.
HR administration
We handle contract changes, leave, employment certificates and other routine HR matters.
Expenses and benefits
We can administer approved business expenses and employee benefits.
Local support
We provide support to both the company and its employees on administrative matters related to employment in Romania.
How it works
1. You send us the basic information
For an initial assessment, we usually need:
- the position or role;
- the proposed gross salary;
- any benefits offered;
- the expected start date;
- a short description of the activity;
- details of the company requesting the service.
2. We review the setup
We review the information provided and discuss how the arrangement is expected to work in practice.
If we need any additional information, we will request it before preparing the documents.
3. We sign the services agreement
The commercial agreement sets out the services, payment terms, payroll calendar and the responsibilities of each party.
4. We prepare the employment
We collect the required information and documents and prepare the employment documentation.
5. We handle the monthly administration
Once the employment starts, we manage payroll and the recurring employment administration.
One point of contact. You do not need to coordinate a separate payroll provider, HR administrator and multiple suppliers for routine employment matters.
How much it costs
EUR 299 + VAT / employee / month
This is our standard fee for the Employer of Record service and the ongoing administration of the employment relationship.
Salary, applicable taxes and social contributions, benefits, employee expenses and other costs arising from the employment relationship are charged separately.
For larger teams, we can discuss pricing based on volume.
Payroll and monthly administration
Each month, we collect the information that affects payroll and prepare the salary calculation.
This may include:
- base salary;
- bonuses or other compensation items;
- annual leave;
- medical leave;
- approved expenses;
- benefits;
- contract changes.
The client receives a breakdown of the costs relating to the team, and payroll is processed according to the agreed calendar.
Payroll deadlines are important, particularly for bonuses, salary changes and other items that need to be included in the calculation for a particular month.
Expenses and benefits
We can administer business expenses incurred by employees, based on supporting documents and the approval process agreed with the client.
Depending on the circumstances, these may include:
- business travel and accommodation;
- transport;
- business entertainment or representation expenses;
- subscriptions and services used for business purposes;
- other expenses approved by the client.
We can also administer employee benefits, depending on the agreed policy and their applicable tax treatment.
Not every amount paid to an employee is treated the same way for tax purposes. Before processing a payment, we review its nature and the available supporting documents.
Termination of employment
Ending an employment relationship needs to be reviewed separately, based on the circumstances and the legal grounds available.
The fact that a company no longer wishes to continue a project or commercial arrangement does not automatically mean that the employee’s employment contract can end on the same day.
Before starting a termination process, we may review:
- the employment contract;
- the reason for termination;
- the applicable notice periods and deadlines;
- unused annual leave;
- amounts still due to the employee;
- the documents required;
- the possibility of termination by mutual agreement, where appropriate.
The client is informed of the required steps and any costs that may arise in the particular situation.
Frequently asked questions
How much does the Employer of Record service cost?
Our standard fee is EUR 299 + VAT per employee, per month. Salary, taxes, benefits, expenses and other employee-related costs are charged separately.
Can we start with just one employee?
Yes. The service can be used for a single employee.
Do you offer discounts for larger teams?
For larger teams, we can discuss pricing based on volume and the type of services required.
How long does the hiring process take?
The timing depends on the employee’s situation, the documents required and the specifics of the role. After the initial assessment, we will explain the steps involved and provide an estimated timeline.
Can we offer bonuses and benefits?
Yes. We can administer bonuses and benefits, taking into account their applicable tax treatment and documentation requirements.
Do you also handle employee expenses?
Yes. We can administer expense claims and reimburse approved business expenses based on supporting documents.
Can the employee work remotely?
Yes, provided the nature of the role allows it and the applicable requirements for the chosen working arrangement are met.
Can we change the salary later?
Yes. Salary changes and other amendments to the employment terms can be handled during the employment relationship, subject to the applicable documentation and deadlines.
What happens if we no longer want to continue working with an employee?
We review the situation and explain the available options, the procedure that needs to be followed and any costs that may arise. Ending a commercial agreement and ending an employment relationship are two separate processes.
Do we need to have a company in Romania?
The service is intended mainly for companies that do not yet have their own local employment and payroll infrastructure in Romania. The appropriate structure still needs to be reviewed based on the activity and the way the arrangement will work in practice.
Planning to hire in Romania?
Send us a few details about the person or team you are looking to hire. We can prepare an estimate of the total cost and explain the steps required to get started.
Employer of Record Romania: EUR 299 + VAT / employee / month
Confidentiality assured • No obligation after the initial assessment
Tel: +40 312 296 100 • Email: office@taxland.ro