Frequently Asked Questions

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Access a range of responses to questions regarding our services and technical information. If you can’t find the answer, don’t hesitate to Contact us


  • Why should I use STIPENDA?

    Simply put, we provide business expansion solutions and facilitate an international payroll service. We have created highly bespoke services that are underpinned by local and international tax technical and payroll knowledge. This knowledge and experience enable you to gain access to expertise that would otherwise not be readily available or easy to find. Our services will save you money.

  • What types of employers use PEO services?

    Although PEOs such as STIPENDA involve a relatively new professional service concept in the UK and Europe, employers in virtually every industry can use their services. Any employer looking to mobilise an employee or an entire workforce in a country where they have no corporate entity will benefit from reduced costs, minimal establishment time, and comprehensive delivery of our payroll and HR services.

  • How will a PEO save my business money?

    Consider the legal, advisory, regulatory, and operational costs of establishing a new branch for your business overseas.

    STIPENDA will save you the time and expenses that you would otherwise spend researching professional and personal insurance, staying compliant with the latest labour and tax laws, hiring an HR expert, or choosing a payroll service provider. Add to that technology and infrastructure costs and it is not hard to see how STIPENDA will save you money.

  • I do not want to give up control of my employees; how will STIPENDA fit in?

    We facilitate the payroll and HR management and administration of your employees working abroad, but ultimately your business retains supervision and control of employee engagement. As we are not involved in sourcing or qualifying employees, you retain the ability to hire and terminate the employment arrangement in accordance with country guidelines.

    STIPENDA gives you access to technical expertise and the latest in HCM cloud technologies to maintain visibility of your international employees.

  • What is the difference between a PEO and an umbrella company?

    An umbrella company provides services to both independent contractors and employers typically on a short-term assignment basis. PEOs focus on assisting businesses in expanding overseas in a cost-effective manner with minimum time constraints.

    Our employee engagements are on a full-time basis and do not feature multiple clients but a single employer. PEOs utilise a network of specialist in-country partners with local tax and compliance knowledge to ensure comprehensive delivery.

  • What is an AüG licence?

    If you hire out or lease employees in Germany, you must hold an AüG licence. STIPENDA has held its AüG licence since 2007. Administered by the Bundesagentur für Arbeit in Nürnberg, Germany (Federal Employment Agency), it is a legal requirement that any recruitment agency or other entity hiring out personnel to a German organisation hold such a licence.

  • When will you pay the employees?

    We run a monthly payroll for all employees on or around the 26th of each month. Employee salary details are collected at the beginning of the month, with all invoices issued to clients by mid-month for prompt payment to STIPENDA to ensure we meet the payment deadline.

  • Why do we have to provide a security deposit?

    It is important to recognise that we are not just a supplier of services but also the employer of record. Similar to other employers, we have a legal responsibility to pay employees on a set date on a monthly basis.

    The security deposit ensures that we have enough funds available to pay salaries to the employee as well as the employer costs to the statutory authorities in the event that there is a delay to the payment of our invoice due to any unseen circumstance. Typically, we request 3 months’ worth of security deposit per employee. This can vary depending on the agreed payment terms of our invoice.

  • Will STIPENDA manage my workers’ compensation/liability?

    The STIPENDA PEO service includes the appropriate levels of workers’ compensation insurance cover required for a particular jurisdiction. You will know exactly what your fees are up front to give you full transparency of operational costs.

    We have the buying power to ensure that our costs are the most competitive in the market.

  • Can you provide advice on employee benefits required per country?

    Yes. Each country has their specific minimum working regulations. Employee benefits are no different, and they can vary greatly from one country to another. This is an important cost consideration when looking at expanding your workforce abroad. We will give you clear directions regarding employee benefits and employer costs (costs to employ) per country.

  • What are your management fees and costs to employ?

    Our management fees are based on the country in which you wish to operate. There are varying operational complexities in different jurisdictions as well as the legislated employer costs (costs to employ) that will determine the fees charged for our services.

    We will outline all of these costs up front so you have full transparency. It is a good idea to discuss your requirements early so that all costs can be factored into your decision.

  • How will we manage employee annual and sick leaves?

    All employee leave approvals will be authorised by your representative and will be subject to local statutory employment guidelines. We can provide you with the necessary HCM cloud technology to manage this process remotely and give you full visibility over your employee. We can also apply another process that falls in line with your business requirements.

  • Can you help my candidates or employees if they will be working overseas?

    This is at the core of our PEO service delivery. Our international payroll and HR capabilities and access to specialist in-country partners ensure that we are able to mobilise your international workforce promptly. Call our Global Solutions number at +44 (0) 330 3800 161 to discuss your requirement.

  • I am an independent contractor. Can you assist me?

    We understand the contingent workforce and have the experience to help you navigate through your contractual requirements. We would be happy to discuss your scenario and explain exactly how we can assist you and how we will contract with your client or recruitment agency.

    Due to the nature of our employer of record services and the associated costs, we require minimum contract periods and contract rates. Please email your enquiry via our website so we can review your situation, and one of our customer solutions consultants will respond promptly.

  • How do I join STIPENDA and register online?

    Simply complete and submit the online registration form on the Consultants page of this website. If you have any questions about the form or the joining process in general, please call our Global Solutions number at +44 (0)330 3800 161.

  • Will you manage all the statutory payments?

    As the employer of record, STIPENDA will ensure that all in-country statutory payments with regards to tax and social insurance are calculated correctly and paid on time to ensure full compliance.

  • Who will issue the employment contracts?

    As the employer of record, STIPENDA will provide you with a legal country compliant employment contract to review and agree before we send it to the candidate for their consideration and acceptance. All the relevant local employment conditions will be covered, and we will endeavour to include any other clauses you wish to enforce if they are compliant within that jurisdiction.

  • What is supervision, direction, and control (SDC)?

    STIPENDA will enter into a co-employment arrangement with your organisation. Although we become the legal employer of record in a particular jurisdiction, you will retain the supervision, direction, and control over the employee as they will be working under your day-to-day management team in achieving the required business tasks.

  • Can you help me if I’m working and based overseas or if I need to move abroad?

    Yes. That is where we differ from a UK-based umbrella company. Our expertise goes beyond UK borders, and we have capability to deliver our employer of record services to you in over 50 countries, either through our PEO or Tradernet service.

  • Will you help me relocate overseas?

    Unfortunately, we do not provide relocation services. If your role is based overseas, we will be able to manage all aspects of your contract, payments, and taxes, but we are unable to help you organise your physical relocation.

  • What is co-employment?

    Co-employment is the contractual arrangement between the client and a PEO that allows the PEO to provide a full range of services and share many employer responsibilities. Each party is responsible for certain employment obligations. You maintain SDC for production or delivery of service by the employee, and the PEO assumes responsibility for human capital management.

    SDC ensures that your company retains the right to manage your international workforce in order to achieve the desired outcome of their role.

    The employee is always under your supervision, direction, and control throughout the term of employment.

  • What are employer costs and why do we have to pay them?

    Employer costs or costs to employ are statutory costs imposed on all employers in the relevant employment jurisdiction. These costs vary significantly from country to country and should be considered part of an expansion strategy when choosing one jurisdiction over another.

    Employer costs include such things as payroll tax, social insurance, health insurance contribution, national insurance and so forth. Even if you were employing directly, you would be liable for this cost.

    We will advise you of the cost as part of the initial proposal for your consideration.

  • Who will manage all the statutory payments?

    As the employer of record, STIPENDA will be liable and responsible for making all the legislated statutory payments on behalf of the employer and the employee in accordance with local guidelines. The statutory payments form the basis of the cost to employ figures that are outlined at the beginning of each employee engagement with our clients.

  • What is an employer of record?

    In essence, an employer of record is a business that assumes the legal responsibilities of employing your employees to facilitate payroll, HR, and compliance service and reduce the risks and cost associated with establishing your own corporate entity in a foreign jurisdiction.

    The EOR becomes the in-country employer of your employees for administration purposes. Practically, through a chain of contract, an EOR becomes the employer of your employees, and you lease them back from them whilst retaining supervision, direction, and control of the employee.

    It is the simplest and quickest approach when you are looking to expand your workforce abroad without the need to establish a corporate entity.

  • How am I contracted with STIPENDA?

    We have various service models to provide solutions for your prospective client or your employer as a PEO. These will determine the relevant employment contracts that apply. Prior to onboarding, we will discuss the contractual requirements of the employment agreement for your consideration and answer any specific questions that you have.

Why not get in touch and talk about your particular requirements?

We offer flexible support with a variety of different service levels to choose from.

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