Denmark International Payroll HR Outsourcing
WELCOME TO THE LE CHEMINANT INTERNATIONAL PAYROLL PARTNER IN DENMARK
Denmark is unusual in Europe in that the mandatory employer social charges are virtually negligible: Compare this to countries like…. Italy (39% of gross remuneration) or France (46%). Unfortunately, this means that taxes are high!
EMPLOYMENT AND ACCOUNTING SERVICES IN DENMARK
Our partner company in Denmark is a firm run by a qualified accountant with many years of experience especially with foreign companies operating in Denmark. She can of course handle payroll administration, but also more complex accounting issues like VAT, transfer pricing, corporate taxes and filings.
ACCOUNTING SERVICES
The company has experience with the full range of financial requirements –
- Day to day accounting and bookkeeping,
- financial control,
- VAT
- transfer pricing,
- fiscal representation,
- tax advice and returns.
- annual filings and reports.
- “Lønsumsafgift” calculation and reporting
- Budgeting
- Contact with lawyers, auditors and banks.
Today the firm does the accounting for approximately 50 companies, and as with the payroll function, different accounting systems are catered for. And if the client has no software or methodology, our partner company will together with the client find the best system which matches the client needs.
The Director of our partner firm has previously been Head of Group Finance in a substantial company, and the consultants employed have similar wide qualifications.
Payroll Services
- Weekly, semi-weekly, monthly payroll
- Full time or hourly rate employee
- Benefits administration
- Report and settlement of employee tax (A-skat, AM-bidrag, B-skat)
- Payroll reports to head office/financial team
- Contact with insurance companies.
- Employee contracts - we will give these free if we have them in our library and they have been recently reviewed by a legal expert.
- Dealing with Collective Agreements /union agreements
Administrative Services
We offer all kind of administrative services needed for a Danish company.
- Company registration
- Office address services
- Management service
- Post handling
- Director
- Payroll and accounting consultancy
Employer of Record Services
Most of our business in Denmark happens to be Employer of Record services where our local partner acts as the Employer for clients that do not have legal entities in Denmark.
Because the mandatory social charges are so low, there is a tendency for foreign employers in particular, to grant private pensions and health insurance but this is not always required in the “labour market”.
What is special about employment in Denmark
- Vacation – in Denmark you earned 2,08 days per month of employment. The employee earns the days throughout the calendar year. You can use or “spend” the earned vacation days during next year in the period May – April.
- Social charges – in Denmark there are exceptionally low social charges, both those paid by the employee and the employer – in average 1 full time employee cost app. DKK 3,000-7,300 per year depending on branch/type of company.
- But income taxes are high.