What are the key deadlines employers have to observe and what tasks do they have to perform to comply with relevant laws and regulations? These are some of the questions we seek answers to in this article, along with providing some useful information for employers in relation to day-to-day payroll activities.
When are salaries due?
The first and most important decision for employers is when to schedule the payment of employees’ salaries. In Hungary, a monthly payment is the most common option. According to the Hungarian Labour Code, salaries must be paid no later than the 10th following the given month and – unless the employee works abroad or this is otherwise provided for by law – the salary must be determined and paid in Hungarian forints.
When are taxes and contributions due?
As part of their task, payroll accountants calculate the taxes and contributions payable by employers and employees. The general rule is that employers must pay these amounts on a monthly basis, no later than the 12th following the given month, to the defined bank accounts of the National Tax and Customs Administration (NAV). In addition, there is another contribution related to payroll in Hungary but which is only payable to the tax authority on a quarterly basis. The employer is responsible for making sure that the taxes and contributions are deducted from employees and paid to the tax authority. The due dates of taxes normally correspond with the due dates of the tax returns.
When do employers have to submit returns by?
The monthly returns need to be submitted by employers for all employees by no later than the 12th following the given month, for the taxes, contributions and additional data related to payments and contributions, including the vocational training contribution. The return must be submitted electronically via the client gate. Employers with more than 25 employees need to submit a return on the rehabilitation contribution no later than the 20th day of the month following the given quarter. Failure to comply with return deadlines can result in significant penalties.
What is the deadline for reporting new employees?
The fact that new employees must be reported to the NAV before the start of the employment is a major burden for employers in Hungary. As for the start date of the insurance period, this notification must be submitted on the first day of the employment at the latest, before starting work. All the personal details of the new employee are required for the notification report, along with the education, qualifications and professional qualifications of the insured individual, the name of the institution issuing the relevant certificate as well as the number of the certificate. Employers are obliged to submit special notifications regarding agency workers.
What obligations do employers have regarding aptitude tests for positions?
Aptitude tests must be provided by employers before the start of work, as well as regularly during the employment, free of charge. Aptitude tests must be conducted for each new employee and prior to any change in position, workplace or working conditions. Conducting these tests is particularly important as employees are categorised as suitable, temporarily unsuitable or unsuitable for the relevant position based on the aptitude test, which may affect further employment possibilities.
The tasks and deadlines mentioned in this article do not cover the entire legal and statutory background employers must comply with. It is important to gather relevant information and entrust a professional with payroll tasks to reduce your administration and make sure you don’t have to worry about deadlines! Feel free to contact us if you have any specific questions regarding the payroll obligations of employers.
Marianna Fodor
director payroll services
Tel: +3618873766
marianna.fodor@wtsklient.hu
