--- title: How to set up and run a shadow payroll? description: A shadow payroll is required, if an employee is deputed from a foreign company entity to Germany. The shadow payroll has the purpose to confirm the salary payments to authorities and helps to identify taxes and contributions to be paid in Germany. --- [Skip to content](https://knowledge.dwyer-legal.com/how-to-run-a-shadow-payroll#main-content) English Show submenu for translations [Contact us](https://knowledge.dwyer-legal.com/kb-tickets/new?hsLang=en) ![DwyerLegal\_logo.png\]](https://knowledge.dwyer-legal.com/hs-fs/hubfs/DwyerLegal_logo.png?height=42&name=DwyerLegal_logo.png) - [Default HubSpot Blog](https://dwyer-legal-4951429.hs-sites.com/blog) Open main navigation Close main navigation - [Default HubSpot Blog](https://dwyer-legal-4951429.hs-sites.com/blog) - English Show submenu for translations - [Contact us](https://knowledge.dwyer-legal.com/kb-tickets/new) - Contact us Contact us Dwyer Legal Citizenship Knowledge Base - There are no suggestions because the search field is empty. 1. [Dwyer Legal Knowledge Base](https://knowledge.dwyer-legal.com/?hsLang=en) 2. [Payroll, Taxes and Contributions](https://knowledge.dwyer-legal.com/payroll-taxes-and-contributions?hsLang=en) 3. [Payroll processing](https://knowledge.dwyer-legal.com/payroll-taxes-and-contributions?hsLang=en#payroll-processing) # How to set up and run a shadow payroll? ## A shadow payroll is required, if an employee is deputed from a foreign company entity to Germany. The shadow payroll has the purpose to confirm the salary payments to authorities and helps to identify taxes and contributions to be paid in Germany. To initiate the processing of a shadow payroll, the foreign Company needs to provide Dwyer Legal with the following information: - Name of the Employee; - Date of birth; - Employee ID within the Company; - Salary and allowances to be paid to the employee while in Germany; - Confirmation that the employee is supposed to remain on the payroll of the foreign entity. Once Dwyer Legal has received this information, it will then set up and provide a preliminary version on the payroll to the company client to be checked and confirmed. Once confirmed, Dwyer Legal will then release the final version and will also - if applicable - take care of the registration of the employee with a German health insurance provider. With each month Dwyer legal will then - as long as the employees are in Germany - provide an updated shadow payroll for the relevant month and also this needs to be changed and confirmed by the company client. To ensure the correctness of the shadow payroll the relevant replies from the client shall be given within 5 working days in all cases. This is also to ensure that employees who have left Germany are properly deregistered from their health insurance. A shadow payroll is to be closed if an employee remains in Germany and he is being transferred to another payroll, such as the payroll of a local Company. Please do not hesitate to contact us, if you need additional information or support with setting up a company in Germany. 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