![]() If you have employees who travel in connection with their work you must agree how their expenses are to be reimbursed. Remember that you must also calculate and post employer's National Insurance contributions on holiday pay. When you have employees, you must calculate and pay employer's National Insurance contributions on salaries and other remuneration, including payment in kind which you pay your employees. Employer's National Insurance contributions ![]() If you are covered by a collective wage agreement or another agreement which gives a fifth week of holiday, the ordinary rate is 12% (14.3% for employees over 60). For employees over the age of 60, the rate is 12.5%. Employees aged over 60 years are entitled to an extra week's holiday. The holiday pay will then amount to 10.2% of the basis for the holiday pay. According to the Annual Holidays Act, employees are entitled to four weeks and one day of holiday. You must also calculate and set aside holiday pay on salary and other work remuneration in your accounts. If you do not wish to use a tax deduction account, you need to have a bank guarantee that at all times covers payable tax deductions. Tax deductions should be deposited to a locked bank account. The amount you must deduct will be stated in the employee's tax deduction card. All tax deduction cards are digital. If you decide to do it yourself, you must have an overview of at least the following: Tax deductions/Payroll withholding taxĪs an employer, you must deduct tax from the salary you pay to your employees. If you have the same payroll and accounting system, the transactions will often be posted automatically. You will also receive completed lists showing which accounts you should post the various transactions under. Common to most of them is that they are structured in such a way that holiday pay and employer's National Insurance contributions, for example, are calculated automatically, the a-melding can be submitted directly via the payroll system. There are many different payroll systems available to suit different needs. If you do decide to do it yourself, a payroll system will be a big help. Keeping payroll accounts can soon become complicated if you are not sure how it should be done. ![]()
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January 2023
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