What is required to make payslips for your employees?

What is required to make payslips for your employees?

In this blog, we discuss what is required to make payslips for your employees when we do the payroll for your company.

Is your company registered as an employer?

Before we can prepare the payroll and make payslips for your employees, your company must be registered as an employer.

In Danish, this type of registration is called “arbejdsgiverregistrering”.

You can check on the website of the Danish Tax Agency SKAT Erhverv if your company is registered as an employer.

This is shown on the registration document for the company.

If you are not registered as an employer, we can help you with this.

Payroll system

We use a payroll system which helps manage the calculation of salaries, income tax, holiday allowances, reimbursements etc.

For smaller companies we recommend to use Danløn.

For larger companies we recommend to use DataLøn which provide more customisation options.

Information we need to create a Danløn or DataLøn account for you

We need the following information relating to the company:

– Company registration number (CVR-number);
– Sort code and bank account number for the company bank account.

A transfer agreement (“Overførselsservice”) needs to be signed by you

You will receive a transfer agreement by mail.

In this mail, you will find instructions on how to sign the transfer agreement.

The transfer agreement enables the payroll system to automate transfers of salaries and taxes to employees and the Danish Tax Agency.

Deadline for sending payroll information for salaries

Payroll information should be delivered to us as soon as possible each month to make the payslips on time.

We’d like to receive the payroll information by the 20th of each month.

Special information for hourly-paid employees

This deadline on the 20th of each month means that hourly paid employees should not be offered the calendar month as their salary period.

There is simply not enough time to count hours from the 1st to the 31st because it leaves no time to make a payslip.

We recommend calculating the worked hours from the 15th to the 14th of each month, so you’ll have about a week to submit the information to us.

What information do you need to send regarding new employees?

We need the following information relating to all new employees:

– Name of the employee;
– Address of the employee;
– CPR number of the employee;
– Sort code (reg) and bank account number of the employees bank account;
– Which tax card we are to use (“hovedkort”, “bikort” or “frikort”);
– Contract of employment.

NB: If you have not made a contract of employment with the employee, then you need to inform us if the employee is hired under the rules of a “funktionær” or “ikke-funktionær”, otherwise we are unable to calculate holidays correctly.

Remember that a contract of employment is required by law.

Failing to have a contract of employment can end up in a fine.

What information do you need to send regarding the payroll when ordering salaries?

We need the following information relating to the payroll:

– Salary period;
– Amount of hours worked;
– Rate per hour (for hourly-paid employees);
– Gross salary (for full-time employees);
– Fringe benefits (free usage of telephone, free usage of car, lunch and more).

Mandatory insurance

Having insurance as an employer is mandatory and required by law.

You need to have these two insurances:

1: Worker’s Compensation Insurance

2: Labour Market Insurance for Occupational Disease

You can read more about mandatory insurances here

Risk assessment – APV

When you have employees, you also need to prepare a risk assessment also called an “APV”.

This should be prepared with the employees.

You can read more about the APV here

Sole shareholder and director in an ApS – do you need a contract?

As a sole shareholder and director in an ApS, you must also have a contract with the company regarding your employment.

Even if you do not get a salary for your work as director.

Getting a salary is not mandatory when you are the sole shareholder and director in an ApS.

But you should always consider how to structure your remuneration, preferebly as a combination of salary and dividend to optimise your income tax.

Do you get a salary and a payslip as a Sole Proprietor?

No, a Sole Proprietor does not get a salary and a payslip since a Sole Proprietor is not employed in the Sole Proprietorship.

Learn how to pay tax for your employees here

(This blog was updated: 2.4.2024)