Payroll in Denmark

In Denmark, in order to prepare payrolls for employees, the business should first be registered as an employer - arbejdsgiverregistrering. This is in addition to the already existing VAT registration. On the SKAT Erhverv website, you can check whether the business is registered as one that employs employees.

Firstly, a Danish entrepreneur should register with a payroll system, such as Bluegardenczy Danløn (it takes up to two weeks to set up an account), in order to do so, both the company bank account number and the company registration number - CVR - must be provided.

For new employees, information such as the employee's address, name, bank account number, sort code, employment contract (required by Danish law, failure to do so may result in a financial penalty), CPR number and type of tax card: frikort, hovedkort or bikort are needed to draw up payroll. If the employer has not entered into an agreement with the employee, it is necessary to tell the accountant under which terms and conditions this employee is employed (ikke-funktionær or funktionær) in order to calculate the vacation correctly.

A Danish entrepreneur should send their accountant information on wages and salaries for his/her employees such as: the number of hours worked per month, the pay period, for full-time employees the gross amount of wages, fringe benefits, for hourly paid employees the hourly rate.