Estonia’s e-Residency program allows you to have a truly location-independent company. That means that your business can hire employees from anywhere in the world. Our own team at Your Company In Estonia is made up of people from all over the world!
There was no point then limiting the employee and salary contracts of Companio, our comprehensive business management interface, to just euros. Therefore, we recently introduced the ability to define the contracts and salaries of your employees in any currency, not just in euros.
Contracts and salaries
One of the most advanced characteristics of Companio is to be able to define the company’s employees, both external and internal. In addition, you can add your payrolls manually or let us automatically generate them for you. This not only allows you to centralize employee management but also as:
- Payroll reminder at the end of the month, with the bank details of the employees
- Automatic generation of employee payrolls, which can be digitally signed by the company and presented as an official document by employees.
- Payroll history.
- Bank reconciliation with payroll payments, for better control of the company’s human resources spending.
Defining a contract in a specific currency
Defining a contract in a specific currency is very simple. Just go to the section “Employees and salaries” and add a new employee, either internal (a member of the company) or external.
Fill in their personal data first and click continue. You will be asked for some data, including the employee’s salary. You will notice a new “Currency” field, allowing you to set the desired currency of the salary.
If you ask the system to automatically generate the employee contract for you, the salary will appear in the correct currency. As an example, this contract shows a salary in Ukrainian Hryvnias.
Important legal aspects when hiring employees
When hiring employees in other countries outside of Estonia, including the shareholders or members of the board of the company, you must be careful to observe certain legal aspects. Sometimes, such as when hiring employees in Europe (and other countries), your Estonian company may need to pay social security or some kind of social taxes for those employees. If that happens, you have several options, such as asking the employees to become professionals or freelancers (in that situation, you do not pay them salaries, but they invoice your company every month) or that the company registers as a taxpayer in their countries and pays social taxes in the employee’s country.
In this article, we talk about these legal aspects when hiring employees in detail. It is important that you read it if you are hiring employees who live outside of Estonia.
Deciding the future of Companio together
At Companio (formerly Your Company In Estonia), we want to give our clients voice and vote in something as important as the tool with which they manage their company every day. Did you know that you can suggest improvements or request the correction of errors from the same Companio platform? If you have not already done so, enter the “Improvements” section in the user menu at the top left. You can suggest an improvement or correction of errors, or vote on the initiatives that you like the most from other users.
If you are not a customer yet, come with us! We have the most prepared team and Companio, the most powerful tool on the market for managing your company completely online.