Of all the tasks carried out by employers,comprehensive payroll services are one of the most sensitive areas for employees. Relevant statutory rules as well as the many separate pieces of related legislation often barely refer to each other, if at all, which puts the employer and the payroll administrator in a difficult position. Outsourcing payroll services is a cost-effective and discrete solution for employers. Outsourcing regular payroll activities is something we recommend for companies that do not have their own HR department and which do not want to keep the risk and all this administration in-house. Outsourcing payroll activity can save costs for companies, while the problems caused by the unexpected resignation or illness of their own payroll administrator can be avoided.
Up-to-date expertise in comprehensive payroll services
The comprehensive, up-to-date expertise of our staff guarantees that we can offer you the most cost-effective solutions from a tax and employment law perspective.
Not only may our clients outsource their entire payroll to us, but we also carry out specific payroll tasks. Even if you only want to outsource the payroll for management or key personnel with complete confidentiality and discretion, it is also possible.
The payroll process, that is the monthy calculations of net salaries as well as related taxes, comprises various steps during which statutory and legislative provisions have to be applied.
Comprehensive payroll services can be split into three main tasks: processes at the start of the year, monthly tasks, and year-end duties.
At the start of the year several statements are required to be processed, checked and sent to employers and employees. These documents include, but are not limited to, family allowances, additional holiday based on number of children, newlywed allowances, cost reimbursements, tax advance declarations, etc.
The monthly payroll tasks take up the most time during the whole process of comprehensive payroll services. Reporting new employees to the tax authority, processing the information from previous workplaces as well as settling up with leaving staff and preparing their exit papers is a very important task. Based on a monthly schedule agreed upon in advance with the client, attendance/time sheets are processed, risks and mistakes are communicated to the employer if work has not been carried out properly, and if a working schedule is applied then timetables are registered along with the recording of working hours, rest hours and illnesses. Bearing in mind the compliance with the rules on employment remuneration, basic wages, wage supplements, other wage elements (bonuses, premiums, commissions) and absence pay are calculated along with payments specific to the company (e.g. daily allowances, travel cost refunds, fringe benefits, tax-free benefits from the employer, etc.) in line with tax rules.
Employer and employee taxes and contributions
We perform and record deductions from salaries in line with statutory rules. When talking about taxes and contribution payment liabilities for salaries we distinguish between: employer and employee taxes and contributions. We provide information every month to the tax authority on the amounts calculated, broken down by employee. The expertise and up-to-date know-how of the staff in our payroll department ensure that attention is drawn to the tax allowances available for employers and employees, to the conditions by which they may be used, and that these are claimed.
Our monthly tasks also include preparing data reports, tax returns and other reports, and sending them to the various authorities. Furthermore, the generation and preparation of general ledger postings, performing monthly salary, tax and contribution transfer orders, preparing statements and cost estimates, claiming social security benefits, health insurance fund adminstration, social security payment agency tasks, and sending monthly payroll lists electronically to employees, protected by passwords.
If necessary we can provide representation services at the authorities during any inspections.
We always apply connected rules in view of their correlations, and after interpreting legislative texts we transpose them into payroll practices. We use the NexonBér payroll programme, which is a regularly maintained and continuously updated software. Our staff have extensive practice in using this system, and regularly take part in both professional and technical further training.