Denmark Payroll Solutions

Contractors in Denmark can be set up in an Employed solution.

Contractors should be engaged in Denmark as fixed-term employees with income fully processed through the local payroll.

This is the most compliant and preferred form of engagement in country.

Tax year – The tax year is the calendar year for individuals

Immigration – Nationals of the other Nordic countries (Finland, Iceland, Norway and Sweden) can work in Denmark
without any restrictions. They do not need a residence permit, however they must register with the local Citizens Service Centre when they have been in country for six months.

Nationals of other EU/EEA and Switzerland need to obtain an EU registration certificate (registreringsbevis) if staying in
country for more than three months.

Please note all other nationals must apply for a work permit which is granted based on either a positive list (occupations Denmark has a shortage of qualified workers) or the ‘pay limit scheme’. Work permit fees are available on request.

Workr Fees – €700 per month plus €550 set up fee.

Employment Summary

Registration – All essential employment terms should be providing in writing to the contractor prior to starting the
assignment (failure to comply may result in a liability to pay compensation to the worker of up to 13 week’s salary). We
also register the worker with the Labour Market Occupational Diseases Fund and report the engagement to the ATP office and SKAT (tax) authorities. At the end of the assignment the worker should be de-registered from the various offices.

Contract – A fixed-term contract can be used in Denmark. One month’s notice during the first six months of engagement and then three months after that period, increasing by a month for every three years of service with the same employer (up to a maximum of 6 months’ notice).

Social security – Employers social security contributions known as ATP, are fixed contribution of DKK189.35 – per
month.

Employees social security ATP contributions are fixed amount of DKK94.65 per month.

Tax – Denmark has one of the highest tax rates in the world. There are 4 types of tax payable in Denmark.
Labour market contribution applies to the whole income at 8%

Income tax is payable on income between DKK46,000 – 544,800: 12.11% and on income above DKK544,800: 15%.
Municipal tax: average of 25%, but can vary by region.
Health contribution: 2%

Expatriates who meet certain conditions can apply to be taxed under a special scheme, ETS. The total rate is in effect
32.84%, which is a combination of all taxes.

Benefits – Holidays: statutory annual entitlement of 25 working days.

Holiday supplement: 1% of the annual salary
Sick leave: 30 days fully paid by the employer.
Expenses cannot be claimed as a tax free amount as an employee.

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Finland Payroll Solutions

Contractors in Finland can be set up in 2 ways, Employed and Self Employed.

Contractors should be engaged in Finland as employees with income fully processed through the local payroll. This is the most compliant type of engagement in country.

Self-employment may be possible for contractors but this must be considered carefully. This is available to truly independent contractors who will typically provide services as private entrepreneurs. To qualify as a self-employed person, the typical criteria will be economic independence; freedom to determine his/her own activities, working hours and place of work; use their own equipment; hire assistants or arrange substitutes.

Tax year – The tax year is the calendar year for individuals

Immigration – Nationals of the other Nordic countries (Denmark, Iceland, Norway and Sweden) can work in Finland
without any restrictions. They do not need a residence permit; however they must register with the local register office if they stay in Finland for longer than three months. Nationals of other EU/EEA and Switzerland must register their residence with the Finnish Immigration Service if their stay lasts more than three months.

Workr Fees – €575 per month plus €350 set up fee. This applied to both the employed and self-employed solutions

Employment Summary

Registration – Workr will arrange statutory insurance and registration of the employee with the various funds. We also
send a notification to the Tax Administration authorities about the engagement of the employee.

Contract – Open-ended contracts are the norm and a fixed-term contract can be used only if there is a justified reason for doing so.

A fixed-term contract can have up to three successive extensions (so four contracts issued in total). Each contract (and
each subsequent extension) must last at least three months, with a maximum total duration of two years (that is the
combined duration of the original contract plus all extensions).

Employers social security contributions are approximately 30% of the gross salary with no income ceiling. Some other
contributions are made to 5 different government offices all with different percentages of contribution.

Employees social security contributions are 10%

Tax – Income tax which is progressive and ranges from 6% to 31.25%

Benefits – Holidays: 30 days per year Public holidays: 10 days (time off paid when fall on a working day)

Holiday bonuses: depends on CBA but is normally provided typically around 50% of holiday pay (so that is 1.5 normal pay during annual leave).

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Hungary Payroll Solutions

Contractors in Hungary can be set up as Employees.

Tax year – The tax year is the calendar year for individuals.

Immigration – Citizens of the EU or the EEA do not need a work and residence permit. Foreign citizens (who are not EU or EEA citizens, now includes UK nationals) must obtain a work permit in order to perform activity as an employee.

Workr Fees – €575 per month plus €350 set up fee. This applied to both the employed and self-employed solutions

Employment Summary

Registration – A tax ID and social security number (TAJ) is required for all candidates. We can assist with the application
process for foreign citizens. The tax ID and the TAJ takes 2 to 5 weeks. Several forms have to be filled and signed. The
registration needs to be completed before the first day of work.

Contract – A standard Hungarian employment contract will be issued to the candidate.

Employers social security – contributions are 17% of the gross salary with no income ceiling.

Employees social security – contributions are 18.5% for social insurance.

Tax – Income tax is a flat rate of 15%.

Benefits – Each calendar year, an employee is entitled to receive at least 20 working days of paid annual leave. The
amount of days can vary depending on age and children.

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Ireland Payroll Solutions

Contractors in Ireland can be set up in 2 ways, Employed and Self Employed.

The Irish market is very similar to the UK market, so there are many contractors who do operate as independent workers.

However the authorities are aware of and desperately trying to battle bogus self-employment. When considering the
engagement of independent contractors, the following criteria are commonly used by the courts; control, obligation,
substitution, equipment, training, exclusivity. None of the criteria should be considered independently and there is no
need to tick every single box – it’s a matter of having an overall assessment.

Tax year – The tax year is the calendar year for individuals

Immigration – Nationals of other EU/EEA and Switzerland can live and work in Ireland without registering (but they should be engaged in economic activity or; have sufficient resources and sickness insurance or; be a family member of an EU citizen that meets one of the previous criteria.

Workr fees – €575 per month plus €350 set up fee. This applied to both the employed and self-employed solutions

Employment Summary

Registration – We ensure the worker is registered with the Revenue (for tax, PRSI and USC deductions)

Contract – A contract or at least a written statement of the particulars of the terms of employment must be provided not later than two months after the date the employment commenced.

Employers social security – contributions, PRSI, is calculated at 11.05% of the employee’s gross salary (no income cap).

Employees social security – PRSI is calculated at 4% of the gross salary (no cap).

In addition Universal social charge for those earning more than €13,000 gross per year is calculated as per the following 0.5% of annual income up to €12,012, 2% of annual income between €12,012.01 and €20,687, 4.75% of annual income between €20,687.01 and €70,044 and 8% of annual income over €70,044.

Tax – Income tax is based on the following brackets and rates 20% on earnings up to €35,300 and 40% on earnings above €35,301

Benefits – Holidays: 20 days (four working weeks) per year. 9 public holidays. Notice period: one week’s notice after 13 weeks to two years’ service; two weeks’ notice between two and five years’ service.

Self-Employment Summary

Registration – Social security, Tax and VAT are all registered for under the self-employed option.

Contract – A fixed-term or open-ended contract can be used in Ireland.

Social Security – PRSI is calculated at 4% of the gross salary (no cap).

In addition Universal social charge for those earning more than €13,000 gross per year is calculated as per the following 0.5% of annual income up to €12,012, 2% of annual income between €12,012.01 and €20,687, 4.75% of annual income between €20,687.01 and €70,044 and 8% of annual income over €70,044.

Tax – Income tax is based on the following brackets and rates 20% on earnings up to €35,300 and 40% on earnings above €35,300.01

Benefits – One can claim the cost for day-to-day running of the business, which may include things such as: wages, rent, rates, repairs, lighting and heating etc; running costs of vehicles or machinery used in the business; accountancy fees; interest paid on any monies borrowed to finance business expenses/items; lease payments on vehicles or machinery used in the business. Travel to a place where work is to be carried out (but is not the usual place of work) can be claimed too.

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Italy Payroll Solutions

Contractors in Italy can be set up in 2 ways, Employed and Self Employed.

The employed solution is the preferred model for Italy, but this needs to be carefully structured under a service provision and not simple supply of personnel.

Self-employment is allowed under some rules, meaning the individual is clearly and truly independent, with contractual
terms being a true representation of what is done in practice.

Tax year – The tax year is the calendar year for individuals

Immigration – Nationals of other EU/EEA and Switzerland can live and work in Italy must report their presence to a
police office and then register with the Anagrafe (Register Office of the municipality of residence or comune).

Workr Fees – €575 per month plus €350 set up fee. This applied to both the employed and self-employed solutions

Employment Summary

Registration – We ensure the worker is registered with the Revenue (for tax, PRSI and USC deductions)

Contract – A contract or at least a written statement of the particulars of the terms of employment must be provided not later than two months after the date the employment commenced.

Registration – An employee must be registered with the social security system, with the relevant pension scheme and
covered by the occupational accident insurance.

Contract – A contract must be issued, in accordance with the sector, profession, applicable CBA and grade/spinal point
applicable to the worker. Indefinite term contracts are the norm. If a Fixed-term contracts is used it can only be for a
maximum of 36 months.

Social security:

Employers social security, due to the complexities of the local SS system, we estimate an average of 30-32% as the
employer’s SS total contributions. This rate covers contributions towards pension, INPS (which covers sickness,
unemployment and maternity insurance) and INAIL (which covers occupation accident and illness insurance).

Employees social security, again, due to the complexity of the SS system, an estimate rate of 10% to be applied to the
worker’s gross salary (up to a ceiling of €101,427) to cover pension insurance and INPS contributions can be suggested.

Tax – Progressive rates from 23% to 43%

Regional and municipal tax average: 3% (varies from 1% to 4.33% combined)

Benefits – Holidays: at least four weeks of paid holiday per year.

Up to 11 public holidays to be paid if they fall on a day when the worker would have usually worked.

Sick leave is paid by the social security system amounting to 50% net pay from the fourth day.

Notice periods (stipulated not by law but by CBA) vary from one to six months.

An amount equivalent to approximately 13.5% of the employee’s annual pay should be set aside for severance payment (trattamento di fine rapport).

Self-Employment Summary

Registration – Self-employed contractors will register for a VAT number – partita IVA, as well as social security and tax.

Contract – A fixed-term and open-ended contracts can be used in Italy as self-employed.

Social Security – Social security will vary depending exactly on what type of registration the person has, their profession, etc, an average figure of 25.72% is the estimate.

Tax – Progressive rates from 23% to 43%
Regional and municipal tax average: 3% (varies from 1% to 4.33%)

Benefits – Most expenses incurred in relation to income-earning activities will be eligible for a tax deduction, such as social security payments, car costs (restrictions apply), entertainment expenses (restrictions apply) as well as food and
accommodation expenses.

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Moldova Payroll Solutions

Contractors in Moldova can be set up as Employees.

Tax year – The tax year is the calendar year for individuals.

Immigration – Foreign citizens who want to be employed in Moldova must obtain a work permit from the National Agency for Employment of the Ministry of Economy.

Workr Fees – €575 per month plus €350 set up fee.

Employment Summary

Registration – A local national will need to provide a copy of their valid ID card. A foreign individual will need to obtain a temporary residence card.

Work permit sponsorship for ex-pats is available for an additional cost. This is quoted on a case by case basis.

Contract – A standard Moldovan employment contract will be issued to the candidate.

Employers social security – contributions are 22.5% of the gross salary with no income ceiling.

Employees social security – contributions are 10.5% for social insurance.

Tax – Income tax is a flat rate of 12%.

Benefits – Each calendar year, an employee is entitled to receive 20 working days of paid annual leave. There are also 11 national holidays in Moldova. Employees are eligdgable for sick leave if they present a medical certificate. State social insurance pays for the sick leave.

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Norway Payroll Solutions

Contractors in Norway can be set up in 2 ways, Employed and Self Employed.

The employed solution is the preferred model for Norway. The use of self-employment is allowed if genuine, however it must be emphasised here that businesses in Norway prefer to engage employees rather than independent contractors.

Tax year – The tax year is the calendar year for individuals

Immigration – Nationals of the EU/EEA and Switzerland can live and work in Norway without having to obtain work or residence permits, however they must register with the Norwegian authorities if staying in country for more than three months.

Workr Fees – €575 per month plus €350 set up fee. This applied to both the employed and self-employed solutions

Employment Summary

Registration – The relevant registrations for income tax and SS will be carried out prior to the worker commencing the
employment.

Contract – A written contract will be provided as early as possible. Open ended contracts are the norm but fixed-term
contracts can also be used.

Employers social security contributions are 14.1%. Employers must also arrange early retirement pension scheme
(stipulated by CBA): 2% of the employee’s pay.

Employees social security contributions are 8.2%.

Tax – There are 2 types of tax in Norway.

Tax on ordinary income which is a flat rate of 22%.

Then a Bracket tax which ranges from 1.7% to 16.2% depending on your income level.

Foreign workers may be eligible to opt for the PAYE scheme in Norway which has a fixed rate of 25% to cover both income tax and social security. The criteria are:

  • you’re a foreign worker who works in Norway for short periods of time, or
  • you’re a foreign worker who works in Norway and it’s the first year in which you’re a resident in Norway for tax purposes,
  • you earn less than NOK 639,750 per year (applies to the 2020 income year)

Benefits – Holidays: most employees are granted 25 working days, with holiday pay being 12% of all wages paid during the qualifying year.

10 public holidays, of which at least two are guaranteed as days off at full pay (if they don’t fall on a Sunday).

16 days sick leave paid by the employer.

Notice period: one month’s notice (for employment lasting less than five years).

Self-Employment Summary

Registration – Self-employed contractors will be correctly registered with the tax and social security authorities and have a VAT number. The Norwegian Tax Administration will only accept an self-employed registration if the work is carried out on the person’s own account and at their own risk, based on a specific scope and duration. The self-employed person has no right/entitlement to receive other assignments from a client, has the ability to send a replacement/substitute and the client has no right to instruct the worker as to the way in which the services are to be carried out.

Contract – An open ended or a fixed-term contract can be used in Norway.

Social Security – SS rates are 11.4%

Tax – There are 2 types of tax in Norway.

Tax on ordinary income which is a flat rate of 22%.

Then a Bracket tax which ranges from 1.7% to 16.2% depending on your income level.

The PAYE scheme is not available under self-employment.

Benefits – As long as original receipts are provided, a contractor can claim for expenses related to costs of a
second/temporary accommodation in country and costs for travel.

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Netherlands Payroll Solutions

Contractors in the Netherlands can be set up in 2 ways, Employed and Self Employed.

The employed solution is the preferred model for the Netherlands when supplying personnel.

The use of self-employment is also allowed under Dutch legislation, however the engagement of freelancers (or ZZP’ers, as they’re known locally) has been under scrutiny by the authorities.

ZZP’ers must be registered with the Dutch Chamber of Commerce and they must operate under model agreements that have been previously approved by the tax authorities, with no subordination between the parties. The principle behind these agreements is that, both contractor and end client agree (and share the responsibility) for the contractor’s independent status/classification.

Tax year – The tax year is the calendar year for individuals

Immigration – Nationals of other EU/EEA and Switzerland can live and work in the Netherlands but are required to register with the municipality and obtain a BSN (burgerservicenummer).

Other nationals require a work permit; highly skilled workers who have a degree and are offered a contract for at least
one year, with a minimum annual salary of €66,873.60 (including 8% holiday allowance) can apply.

Workr Fees – €575 per month plus €350 set up fee. This applied to both the employed and self-employed solutions

Employment Summary

Registration – The employee must be registered with the social security system and income tax.

Contract – Indefinite term contracts can be used, however it is very tricky to terminate an employee in the Netherlands
under this type of agreement, so their use should be carefully considered.

Fixed-term contracts can be used, but they have a maximum total duration of 24 months (with a maximum of three
contracts issued during that period).

Social security – Employers social security contributions are spread across 5 different government departments each of
which has their own percentage and some of which are calculated against a maximum amount of salary, while others are calculated against the actual gross salary. An estimated percentage for employers social security would be 18.96%.

Again with employees social security contributions there are 4 different government departments each of which has their own percentage but an estimate would be 27.65%.

Tax – Progressive rates from 0% to 51.95%

There is an expatriate scheme that allows foreign employees to be paid a tax-free allowance of up to 30% of gross salary provided certain criteria are met.

Benefits – Holidays: 20 days paid annual leave.

Holiday pay: 8% of annual pay
9 national holidays
Sick pay at 70% at least of the normal pay
One month’s notice for employees with up to 5 years’ service
Severance/transition payments

Self-Employment Summary

Registration – The contractor will be registered with the Dutch Chamber of Commerce, they will receive social security, tax and VAT numbers.

Contract – Model agreement contract is required.

Social Security – 27.76%.

Tax – Progressive rates from 0% to 51.95%

Benefits – Depending on the circumstances, investment allowance, tax-deferred retirement reserve, self-employed
persons’ allowance and allowance for research and development work may apply before taxes. Costs such as telephone, internet, mobile phone, business software, transport (taxi, train, plane etc) and hotel, insurance premiums and training courses, are generally fully deductible. Entertainment expenses are only partially deductible.

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Poland Payroll Solutions

Contractors in Poland can be set up in 2 ways, Employed and Self Employed.

Employed contractors would be engaged in Poland as fixed-term employees with income fully processed through the local payroll. This is the most compliant and preferred form of engagement in country.

In some cases, it may be possible for contractors to be engaged under the self-employed model. The Polish authorities
have a negative definition of business activity, this means if any of the following criteria are met you are not allowed to
operate as self-employed:

Liability towards third parties for the result of these activities and their execution, excluding liability for delicts, shall be
borne by the party ordering these activities.

These activities are carried out under the direction and at the place and time designated by the commissioning party.
The person performing these activities does not bear the economic risk associated with conducted business activity.

What this is saying is that if the contractor doesn’t hold any liability for the work they do or is under supervision of the
end client then they cannot operate as self-employed.

Tax year – The tax year is the calendar year for individuals.

Immigration – Nationals of the EU, EEA and Switzerland do not require a work permit, but are required to register within 30 days of arriving in Poland.

Workr Fees – €575 per month plus €350 set up fee. This applied to both the employed and self-employed solutions

Employment Summary

Registration – Workr will submit a registration form to the relevant Social Security Office (ZUS) within 7 days from the
date of employment.

Contract – A full employment contract is issued in Poland.

Employers social security contributions are 20.74%

Employees social security contributions are 22.71%

Tax – There are 2 tax brackets in Poland.

Up to PLN85,528 Income tax is 18%.

Over PLN85,528 income tax is 32%.

Benefits – Holidays: statutory annual entitlement

Sick leave: statutory entitlement

Maternity and Paternity pay

Notice period: Between 3 days to 3 months depending on the duration of service.

Self-Employment Summary

Registration – An application for registration in the Central Register and Information on Economic Activity (CEIDG –
Centralna Ewidencja i Informacja o Działalności Gospodarczej) will be submitted with the assistance of the Workr local
accountant. An application for registration in CEIDG is, at the same time, an application for the award of a REGON
number (National Business Registry Number), an application for the award of a NIP number (Tax Identification Number) and a tax payer’s statement of contribution to the Social Insurance Institution, as well as a submission of a declaration about the choice a taxation form. A VAT registration application can be attached to the application for registration in CEIDG.


Contract – A Self-employed contract will be issued to the contractor by the Workr team.

Social Security – SS rate is 31.6% but with a maximum cap on the payment of PLN3,769.10.

Tax – Income tax is a flat rate of 19%

Benefits – Genuine business expenses can be claimed as a self-employed contractor, typically travel, training courses and work-relevant subscriptions are considered allowable expenses as well as costs associated with the move to and from Poland for foreign workers going into the country specifically for a project.

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Portugal Payroll Solutions

Contractors in Portugal can be set up in 2 ways, Employed and Self Employed.

Contractors can be engaged in Portugal as employees or self-employed in both cases all income is fully declared in country.

This is the most compliant type of engagement in country.

Self-employment may be possible for contractors when they are truly independent contractors who will typically provide services independently. To qualify as a self-employed person, the typical criteria will be economic independence; freedom to determine his/her own activities, working hours and place of work; use their own equipment; hire assistants or arrange substitutes.

Tax year – The tax year is the calendar year for individuals

Immigration – Nationals of other EU/EEA and Switzerland need to obtain a certificate of registration of a Citizen of the European Union issued by the City Council of the person’s area of residence.

From 1 January 2021, UK nationals are considered a citizen of a third state, so they have to apply for a visa referring to the specific situation: work, family reunification etc.

Workr Fees – €575 per month plus €350 set up fee. This applied to both the employed and self-employed solutions

Employment Summary

Registration – Workr will arrange statutory insurances. Each worker must apply directly to the Finances department and Social Security department to obtain their tax and social security numbers. Workr will assist with this application. A fixed address and Portuguese bank account is required to complete registration and receive payments.

Contract – Open-ended contracts are the norm in Portugal.

Employers social security – contributions are approximately 23.75%.

Employees social security – contributions are 11%

Tax – Income tax which is progressive and ranges from 14.5% to 48%

Benefits – Holidays: The employee is entitled to 22 days of vacations after 1 year contract duration; until 1 year, he is entitled to 2 days/ month, after 6 months work.

Self-Employment Summary

Registration – Workr will register the contractor for tax, social security and VAT with the assistance of a fully qualified local accountant.

Contract – Open-ended contracts are the norm in Portugal.

Social Security – If you are self-employed, you are responsible for making your own social security contributions. While
employed workers’ contributions are topped up by payments from their employers, those who are self-employed have to pay the full contribution themselves which is 29.6%.

Tax – Income tax which is progressive and ranges from 14.5% to 48%

Benefits – Genuine business expenses associated with the production of income such as, telephone, computer,
professional literature, own tools, travel and the deduction for a second home may be allowed under certain conditions.

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