In accordance with the salary structure of each company, we will calculate the gross salary, withholding tax, social and labor insurance, and other deductions for each employee, from which we will calculate the net salary of each employee and prepare a salary breakdown including the employer portion of the statutory benefits.
In some cases, the net salary amount of an employee being assigned from an overseas entity includes other benefits such as company housing and/or utility costs. In such event we prepare a gross-up calculation under which all the additional benefits and applicable withholding tax paid by the employer is included in the employee’s taxable income. We are able to apply our know-how in conducting such gross-up calculation.
Our reports are tailored to each client and generally by default bi-lingual including:
- payroll calculation breakdown by each employee showing detail of salary and allowances, deductions and net payment
- summary of the overall costs per employee including the company portion of the statutory and other benefits
- payroll related cash-flow summary, i.e. net pay, withholding tax, inhabitant tax (where applicable), social insurance, labor insurance accrual.
Payroll and personnel costs often present a large portion of the company costs therefore we treat the payroll calculation and the information provided as one of the most important financial reports providing management with necessary detail to manage their personnel costs.
Our annual payroll services include:
- the year-end withholding tax adjustment procedures
- preparation of a salary and withholding tax statement
- the salary payment report for inhabitants tax purposes and its submission to the local tax office
- preparation of a schedule that provides a breakdown of any salary, compensation, and rent paid out during a given fiscal year.
Also, when required by our clients we execute the net salary and bonus payments to the employees` bank accounts, and make payment of the withholding tax and inhabitants tax on behalf of the client