Romanian Payroll Solutions

Contractors in Romania 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) must obtain a work permit in order to perform activity as an employee. The work permit is issued by the Romanian Office for Immigration. As a rule, the work permit is issued for a one-year period.

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

Employment Summary

Registration – The application for the TIN (tax identification number) can be submitted directly to the local tax office, at
the registry desk, or by post (Romanian Postal Office), via acknowledgment of receipt procedure. The certificate reflecting the tax identification number should generally be issued by the Romanian tax authorities within
approximately 5 to 10 business days from the time of submission of the complete file.

When staying for more than 3 months in Romania a residency card will be required. A fixed address is would therefore
be a requirement.

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

Employers social security – contributions are 2.25% of the gross salary with no income ceiling.

Employees social security – contributions are 25% for social (pension) insurance and 10% for the health insurance
contribution.

Tax – Income tax is a flat rate of 10%

Benefits – Each calendar year, an employee is entitled to receive at least 20 working days of paid annual leave. Public
holidays are not counted as part of the annual leave.

Annual leave cannot be exchanged, transferred, limited or waived in exchange for a compensation payment – even by
agreement. The only instance where an employee may be paid a cash compensation for their annual leave is when their employment contract is terminated, in this case the leave can be paid in lieu.

Workr International Services Map

Spain Payroll Solutions

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

Contractors can be engaged in Spain 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 as an Autonomo. 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 must register their residence with the Spanish 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.

Employers social security contributions are approximately 31.4% of the gross salary but with an income ceiling of
€4,070.10 per month.

Employees social security contributions are 6.35%

Tax – Income tax which is progressive and ranges from 19% to 45%

Benefits – Holidays: 30 days per year

Public holidays: 10 days

13th and 14th month payment are mandatory in Spain, but they can be pro rated over 12 payments.

Sick leave, the first 3 days is unpaid, then 60% of previous months pay.

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 and a fixed-term contract can be used only if there is a justified reason for doing so.

Social Security – The minimum contribution is €286 per month, However an incentive is in place under which only €60 per month is payable when you first register as Autonomo rising to €198 in months 12-18.

Tax – Income tax which is progressive and ranges from 19% to 45%

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.

Workr International Services Map

Sweden Payroll Solutions

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

The employed solution is the preferred model for Sweden. The use of self-employment is allowed if genuine.

A self-employed contractor will be registered for F-tax; they do not have an obligation to perform work personally (i.e.
can send a substitute) and are not subject to specific orders or control as to where, when or how the work is to be
performed; they are not limited in their ability to engage with other clients and get paid for work results/delivery, not a
fixed amount that is paid irrespective of success of the services provided. The overall engagement will be considered, so even if ‘some of these boxes are ticked’, the authorities could still conclude there is an employment relationship between the parties, so this type of engagement should be considered very carefully.

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

Immigration – Nationals of the EU/EEA can live and work in Sweden but must register with the Migration Board within
three months of entering the country and provide a certificate of employment issued by their employer. Nationals of
Switzerland must apply for a residence permit. Nationals of the other Nordic countries do not require a registration or
residence permit.

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

Employment Summary

Registration – New employees will be registered/reported to the Swedish Tax Agency prior to their commencing work. If the worker doesn’t have a Person Number yet, this must be obtained as without it we are not able to receive a tax table, which is required for the calculation of the income tax withholding and payroll processing.

Contract – Open ended contracts are the norm however please note termination by the employer can only be carried out in case of a ‘just cause’. Fixed-term contracts can also be used, which do not require a specific reason for termination, a month before the expiry of the contract, notice should be given to advise the worker that the contract will not be further extended.

Employers social security contributions are 31.42%

Employees social security contributions are 7%.

Tax – There are 2 types of tax in Sweden, municipal tax and national income tax.

Municipal tax is a flat rate of 32%

National income tax is progressive:
0 – SEK455,200: 0%
SEK455,200 – SEK662,200: 20%
Over SEK662,300: 25%%

Benefits – Holidays: 25 days per year.

13 public holidays, no statutory entitlement to time off or pay, but this is subject to CBA rules.

At least 13 days sick leave paid by the employer (set at 80% of the employee’s normal pay and paid from the 2nd to the 14th day of sickness).

One month’s notice.

Self-Employment Summary

Registration – A self-employed contractor will be registered for F-tax. They will need to meet the strict criteria for self employment to be able to use this service.

Contract – A fixed-term self-employed contract can be used in Sweden for self-employment.

Social Security – Social security contributions: 28.97% of taxable income plus a 7% pension contribution.

Tax – There are 2 types of tax in Sweden, municipal tax and national income tax.
Municipal tax is a flat rate of 25% for sef-employed.

National income tax is progressive:
0 – SEK455,200: 0%
SEK455,200 – SEK662,200: 20%
Over SEK662,300: 25%

Benefits – Typical expenses associated with the running of the business such as business travel costs, internet and mobile bills, car and/or mileage expenses, etc are allowable.

Workr International Services Map

USA Payroll Solutions

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

Contractors should be engaged in USA as employees with income fully processed through the local payroll. This is the
most compliant type of engagement in country known as W2.

Self-employment may be possible for contractors but this must be considered carefully. This is available to truly
independent contractors. 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, this is known as a 1099 contractor.

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

Immigration – Only US nationals can work in the USA without a work permit.

Workr Fees – W2 employment $575 per month plus $250 set up fee.

1099 self-employed fee is $350 per month, no set up fee.

Employment Summary

Registration – Our US entity is established with our own EIN payroll number, the contractor will be added to the payroll.

Contract – A fixed-term contract will be provided by the Workr team.

Employers social security contributions vary from state to state, this effectively means there are 50 different levels of
employers social security depending on which state the work is taking place in.

Employees social security contributions are 6.2% plus 1.45% for Medicare tax.

Tax – Federal and state tax varies from state to state and ranges from 16% to 24%

Benefits – There is no federal or state statutory minimum paid vacation or public holidays.

Self-Employment Summary

Registration – Workr will provide the 1099 form and contractor submits it with 1040 form direct to the authorities.

Contract – A fixed-term contract will be provided by the Workr team.

Social Security – SS rates are 6.2% plus 1.45% for Medicare tax.

Tax – Federal and state tax varies from state to state and ranges from 16% to 24%

Benefits – Typical business expenses associated with the running of your business can be claimed, these could include
home office, educational expenses, car expenses, business travel, mobile, health insurance and business insurance to
name a few.

Workr International Services Map

Japan Payroll Solutions

Contractors in Japan can be set up as Employees.

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

Immigration – We are only able to assist with employment of local nationals, we do not have a visa or work permit
option.

Workr Fees – $1,000 per month plus €350 set up fee and $350 termination fee.

Employment Summary

Registration – The candidate will need to provide their Individual Number (nicknamed “My Number”) which is a 12-digit numbers assigned to individuals living in Japan under the Social Security and Tax Number System.

Contract – There are 3 types of contract in Japan a Permanent Employee, known as Sei-sha-in, a Contract Employee,
known as Keiyaku sha-in and an Outsourced or Temporary Employee, known as Haken sha-in. It is this third type of
contract that is used.

Employers social security – contributions are made to 5 different government departments at differing levels. As a result the amount can vary between 15.3% – 24.73%.

Pension = 9.15%
Health insurance = 4.935%-5.815%
Unemployment insurance = 0.6%
Work injury = 0.25%-8.8%
Family allowance = 0.36%

Employees social security – contributions are made to 3 different government department at fixed rates making the total contribution 14.39%

Pension = 9.15%
Health insurance = 4.935%
Unemployment insurance = 0.3%

Tax – Income tax ranges from 5-45%.

Benefits – Each calendar year, an employee is entitled to receive paid leave, the amount they receive will depend on
their length of service but it will range from 10-20 days.

Workr International Services Map