Payroll

Run monthly payroll in Nordlet for 30 European countries, with each country's taxes and contributions, posted to your books and ready for bank payment.

Payroll is the monthly work of paying employees. For each person you work out the gross pay, the income tax and social contributions to hold back, and the net pay that reaches their bank account.

The tax an employer holds back from pay and sends to the state is called withholding tax. The rules differ in every country, and they change every year.

Nordlet has a payroll engine for each of the 30 countries in the filing support table. The engine follows the tax and contribution rules of the company's country.

What Nordlet does

Employees and contracts. You keep employee records and their contracts, with departments and work schedules.
Monthly runs. A payroll run covers one month. Every active employee whose contract covers the month gets a line.
Gross from the contract. The gross pay is the monthly salary of the contract, reduced to the paid working days of the contract and the month's timesheet. You can also set the gross yourself.
Taxes and contributions. The engine works out the income tax, the employee and employer contributions and the net pay.
The rest of the year counts. Each line uses the employee's approved runs of the year so far and of the two years before.
Draft first. A run starts as a draft. You can check it, or delete it and make it again, before you approve it.
Try a figure first. You can run the engine once on a gross amount to see the tax and net pay. Nothing is saved.

Extra payments

Pay is not only a salary. Bonuses, overtime, allowances and benefits are often taxed differently.

Each country has its own list of payment types in Nordlet. Each type says which taxes, contributions and reports it falls under.
You add a bonus or an allowance to a line with its payment type, and the engine taxes it by that type.
Per diems of approved business trips that end in the month are added to the run without tax.

Booking and paying

Posted to your books. Approving a run posts one journal entry dated the last day of the month. It records the wage cost, the employer contributions, the net pay owed and the taxes owed.
Undo with a reversal. An approved run is not edited. It is reversed with a mirror entry, and you can then make a new run for the month.
Bank file. For an approved run, Nordlet builds a SEPA credit transfer file with one transfer to each employee's account. SEPA is the euro bank transfer system. You upload the file to your bank; Nordlet sends nothing to the bank.
Paid status. The payments in your bank statement can be matched to the run.

Payroll filings

After the run, the payroll reports go to the tax office and the social insurance body. How each one goes out depends on the country.

Some Nordlet builds and sends, for example the Belgian DmfA social security declaration and the Norwegian a-melding.
Some Nordlet builds as a file that you upload yourself, for example the German Lohnsteuer-Anmeldung. See filing as a German company.
Some you key in by hand from the figures Nordlet shows, for example the Italian F24 payment of income tax withheld.

The filing support table lists every filing per country and how it goes out.

Frequently asked questions

Which countries does Nordlet run payroll for?

Austria, Belgium, Bulgaria, Croatia, Cyprus, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, the Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden.

Can I pay employees from Nordlet directly?

No. Nordlet builds the bank transfer file. You upload it to your bank.

What if a run was wrong?

A draft run can be deleted. An approved run is reversed with a mirror journal entry, and the business trips it paid are released for the next run.