Payroll: What you must manage as an employer

What does payroll management cover?

As an employer, you calculate social security contributions every month and deduct them from the gross salary. You then transfer these contributions to social security. Every quarter, you must also file a DmfA declaration with social security. This declaration contains the payroll and working time data for all your employees in that quarter. Besides social security contributions, you must also transfer income tax withholding promptly to the tax authority. Payroll management is a combination of calculations, deductions, and declarations that happen every month.

What appears on a payslip?

With every salary payment, the employee must receive a payslip. It shows gross salary, social security deduction, income tax withholding, and net salary. The work period and number of hours worked are also mandatory entries. Mandatory content may vary by sector: your sectoral committee may impose additional requirements. You must also keep an individual account per employee. This is an annual summary of all paid salaries and deductions made.

The employee pays 13.07% of gross salary as a social security contribution. You deduct this amount as an employer when paying the salary. You, as employer, pay approximately 25% on top of the gross salary as employer contributions. This percentage applies to the private profit sector; other sectors have different rates. Contributions cover pensions, healthcare, unemployment, and child benefits for your employees.

The DmfA declaration: once per quarter

Every quarter, you file a DmfA declaration with social security. The deadline is the last day of the month following the quarter. Q1 closes on 30 April, Q2 on 31 July, Q3 on 31 October, and Q4 on 31 January. This declaration forms the basis for calculating your social contributions for that quarter.

Important: Whoever files the DmfA declaration late pays a 10% surcharge on top of the social security contributions owed, plus late payment interest.

No surcharge at the end of the quarter

Whoever keeps payroll records correctly never pays a 10% surcharge and has no overdue contributions. Your employees receive their payslip on time and the DmfA is filed before the deadline. You keep your personnel file clean and avoid disputes with social security. Schedule a meeting and we'll review how to set up your payroll correctly.

Payroll: What you must manage as an employer.

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