Short answer: Before hiring your first employee, the workplace must be registered with social security, the hiring notification filed before work starts, a written employment contract signed and eligible incentives checked. The first payroll is reported in the following month’s withholding and social security return.
Before hiring
- Workplace registration: If the workplace is not yet registered, a workplace notification is filed before employing the first insured worker.
- Hiring notification: As a rule, filed at least one day before work starts.
- Employment contract: Pay, working hours, job description and probation period are set out in writing.
- Incentive check: The new hire’s age, unemployment period and other characteristics affect incentive eligibility.
What the personnel file should contain
- Copy of ID and residence details
- Signed employment contract
- Printout of the hiring notification
- Health report (for jobs that require one)
- Occupational health and safety training certificates
- Privacy notice under data protection law and the required consents
At the end of the first month
At month end, timesheet data (days worked, leave, overtime) is sent to the accountant. The payroll is prepared; the employee receives the net wage, and income tax, stamp duty and social security contributions are reported and paid with the following month’s withholding and social security return.
Common mistakes
- Filing the hiring notification after work has started
- Paying part of the wage off the payroll
- Losing incentives because of contribution debt
- Not keeping annual leave and overtime records
You can estimate the net salary and employer cost with our gross-to-net salary calculator, and leave the whole process to our payroll and social security service.
