The exemption from keeping supporting payroll records electronically ends on 31 December 2026. Businesses currently relying on an approved exemption should adapt their processes now. From 1 January 2027, they too must retain the records covered by the legislation electronically for new circumstances and events.
For employers, this involves more than scanning documents: supporting records must be complete, clearly identifiable and available for an audit. We explain what the deadline means and how to prepare your business.
What changes on 1 January 2027?
Electronic record-keeping has generally been mandatory since 1 January 2022 for the supporting payroll records listed in § 8 Abs. 2 BVV, the German regulation on the social security contribution procedure. Employers with an exemption approved under § 8 Abs. 3 BVV may depart from this requirement until the end of 2026. That option expires at the turn of the year.
Existing records: Where an approved exemption covers the period up to the end of 2026, the deadline does not in itself require records relating to earlier circumstances to be digitised retrospectively. The requirement applies to new circumstances and events from 1 January 2027. Without an applicable exemption, it has already applied since 2022. This distinction is set out in the joint principles issued under § 9a BVV.
Which businesses and records are affected?
The requirement generally applies to employers obliged to keep payroll records under German social security law, regardless of business size. This can include French and other foreign businesses with corresponding employer obligations in Germany. An employer without a registered office in Germany must appoint an authorised representative based in Germany to keep and retain the payroll records, under § 28f Abs. 1b SGB IV, Book IV of the German Social Code. Employees in private households are subject to a statutory exception to the record-keeping requirement under § 28f Abs. 1 SGB IV.
The records concerned include evidence needed for payroll processing and the assessment of an employee’s social security status. Depending on the employment situation, examples include:
- for employees from countries outside the EEA, evidence of nationality and residence permit;
- documents relating to exemption from compulsory insurance, such as the university enrolment certificate of a working student;
- applications for exemption from compulsory pension insurance in a “Minijob” (marginal employment with a monthly earnings cap), and applications to cancel that exemption;
- declarations by employees in marginal employment about other jobs;
- health insurance fund notifications affecting contributions and decisions on compulsory insurance;
- documents relating to employee postings, particularly A1 certificates;
- evidence of parenthood and the number of eligible children for German long-term care insurance contributions;
- copies of the written statement of essential employment conditions required under the German “Nachweisgesetz”, and working time records under § 17 Abs. 1 MiLoG and § 19 Abs. 1 AEntG (the German minimum wage and posted workers legislation).
The statutory list in § 8 Abs. 2 BVV determines the scope. It does not impose a blanket obligation to digitise the entire personnel file.
What does an audit-ready digital filing system need to do?
Records must remain available throughout the retention period and be readable without delay. They must also be complete and organised so they can be audited. These requirements follow from § 9 Abs. 5 BVV and § 10 BVV.
The joint principles specify how requested documents must be provided:
- One file per document: A multi-page document may remain in a single file; several separate documents must not be combined in one file when submitted.
- Clear identification: The document type, employee and relevant period must be identifiable, for example through file names or an index.
- Suitable formats: PDF, JPEG, PNG, BMP and TIFF are accepted. The contents must be viewable independently of the system used.
Optical character recognition (OCR) can make searches easier. However, these rules do not impose a general requirement to use OCR or scan at 300 dpi. Nor do they prescribe a particular document management system. What matters is whether the chosen solution meets the requirements.
Keep paper originals after scanning
Where covered documents are supplied on paper, the employer must convert them into an electronic format. Under § 9 Abs. 5 BVV, the originals must be retained until the audit has been concluded with legally binding effect; any other statutory retention requirements must also be observed. Scanning therefore does not give blanket permission to destroy paper records.
Digital records and euBP: two separate obligations
Keeping supporting documents electronically is distinct from the electronically assisted employer audit (euBP). Electronic transmission of payroll data for euBP has generally been mandatory since 2023, and financial accounting data since 2025. Exemptions under § 126 SGB IV are available only for accounting periods up to the end of 2026. Transmission is mandatory for payroll cases from 2027 onwards. Businesses should therefore review both their document filing processes and data transmission from the software they use.
What can happen if supporting records are missing?
If inadequate records prevent the pension insurance authority from establishing insurance coverage, contribution liability or the amount due, it may issue an assessment based on aggregate remuneration or estimate remuneration, subject to § 28f Abs. 2 SGB IV. Additional contribution assessments may also attract late-payment surcharges under § 24 SGB IV.
Deliberate or grossly negligent failure to keep or retain payroll records can result in a fine of up to €50,000 under § 111 Abs. 1 Nr. 3 and Abs. 4 SGB IV. This maximum is not an automatic consequence of an isolated filing or format error.
Four steps to prepare for 2027
- Review existing records and exemptions: Which documents are held in paper files, email inboxes, HR software or by your tax adviser? Which exemptions have actually been approved?
- Define filing rules and responsibilities: Specify document types, identification rules, access rights and responsible staff. Agree with your payroll provider who receives and retains each type of supporting document.
- Test availability in practice: Can you locate, read and provide all documents for a selected employee as separate files? Also check euBP data export with your software supplier or service provider.
- Complete the transition on time: Have the processes for new documents in place by 1 January 2027 at the latest and train the staff involved.
The record-keeping obligation lies with the employer even when payroll is outsourced. The work itself can be shared, and the arrangement agreed in step 2 ensures that no document slips through the gap between responsibilities.
FRADECO can help you prepare
Would you like to establish which records are affected and how to integrate the requirements into your existing payroll and HR processes? We can help you review your current arrangements and agree the next steps, including in a Franco-German business context. Please get in touch.
How we take on ongoing payroll is described under German Payroll & HR.
Information current as of 2 October 2026. This article concerns German social security law.