Denmark Payroll Services

At Bradford Jacobs, we navigate the administration of the Danish payroll system for you. We do the work, so you do not have to.

Danish Payroll

Successful international expansion depends on making the right moves from day one. This is vital for foreign companies to establish a presence and operate payroll in Denmark – a European Union (EU) member with one of the strongest economies on the continent.

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How We Can Help You

At Bradford Jacobs, our Employer of Record (EOR) platform provides reliable solutions for companies wishing to establish their presence in the Danish economy. From the first steps of setting up operations to ensuring compliance with the local payroll laws and regulations, we offer dedicated Denmark Payroll solutions that can be personalized to your requirements.

We aim to make your Global Expansion easy. At Bradford Jacobs, we navigate the administration of the Danish payroll system for you, and we also make the returns and associated payments for income tax and social security contributions directly from our payroll system to the local tax authorities.

We do the work, so you do not have to. When expanding into a new country, you may encounter some challenges regarding payroll, but allow us to take the reins and answer any of your questions and concerns with our trusty guide on the payroll for Denmark.

  • Remote payroll – This option allows businesses to operate under a single payroll system, by adding employees in Denmark to your parent company’s payroll. However, these employees must operate under different regulations, which is likely to cause problems.
  • Internal payroll – You may operate payroll for your subsidiary, especially if you are committed to growing your company’s presence in Denmark. However, this does require hiring dedicated HR staff who understand Danish employment and compliance laws.
  • Denmarks’ payroll processing company – If you are considering outsourcing, then working with a Danish payroll company will help in processing your payroll – but not when it comes to compliance.
  • Denmarks’ payroll outsourcing – However, there is another option available that solves both concerns – by working with Bradford Jacobs. We can handle payroll and compliance for all your employees in Denmark. We take the administrative stress off your shoulders so you can focus on what you do best.

Companies expanding their operations into Denmark open up a wealth of opportunities for expansion throughout the European Union and further afield but challenges come alongside the potential benefits. Payroll management is among those challenges, whether your company is considering moving employees abroad or hiring fresh staff in-country.

Employment laws, payroll regulations and income tax regulations are areas where you cannot afford mistakes. Bradford Jacobs’ Employer of Record (EOR) payroll solutions will navigate around these potential pitfalls effectively and efficiently by putting into action our comprehensive knowledge of tax and payroll regulations.

Running payroll in Denmark requires an in-depth knowledge of employment, payroll, and taxation laws – and keeping up to date with changes. As part of our service, we file returns and associated payments for wages tax and social security contributions directly from our payroll system to the relevant authorities.

Outsourcing your payroll in Denmark will streamline your operations by dealing with the following:

  • Obtaining a Central Business Registration (CVR) number from the Danish Business Authority (DBA) for dealing with the authorities.
  • Registering with the Danish Customs and Tax Administration (SKAT) for withholding tax from employees’ salaries and remitting to the authorities.
  • All employers must take out mandatory industrial insurance, along with the withheld Danish Labor Market Supplementary Fund (ATP) contribution.
  • Creating contracts (All Danish employers must provide a contract if the employee has worked for at least one month and more than eight hours a week. The contract covers specific conditions of the employment and can be requested in language of choice, though this is not a legal requirement.)

Additional payroll support includes:

  • Negotiating tax incentives for skilled expats under the Special Expatriate Tax Scheme.
  • Reconciling federal, and any provincial, territorial, and local taxes to assess for refunds or extra payments.
  • Calculating employees’ monthly salary and sending their pay slips.
  • Submitting employees’ and employers’ wage tax returns.
  • Creating and submitting your company’s annual accounts and year-end statements.
  • Creating payment schedules for salaries and any insurance contributions (if applicable).
  • Ensuring accurate personal income tax returns are filed for you and your employees, where required.

The above checklist highlights why the vast percentage of foreign companies expanding into Denmark’s strictly regulated business environment hand their payroll to EOR providers such as Bradford Jacobs. By outsourcing payroll, your company complies with tax and employment regulations without risking sanctions or financial penalties for late or incomplete filing. You focus on your goals and expansion, free of any concerns over payroll. Questions? We have the answers. Contact Bradford Jacobs now.

Companies expanding into Denmark must satisfy strict legal requirements with running payroll, in addition to complying with minimum wage, overtime pay and employee benefits in addition to any directives from the European Union (EU).

Foreign companies looking to set up a legal entity in Denmark to run their own payroll must take the following steps:

  • Select unique company name and type of entity, typically a limited liability company called an Anpartsselskab (ApS).
  • Register for a Central Business Register (CVR) number via the Danish Business Authority (DBA) website at a cost of DKK 670 (€90, US$104).
  • The DBA requires a ‘NemID’ digital signature to access internet services; this needs Danish residency and a work permit.
  • Transfer share capital of DKK 40,000 (€5,374, US$6,230) for operational costs.
  • Provide full details, passports, ID of all board members, who need not reside in Denmark.
  • Register with Customs and Tax Administration (SKAT) for tax and VAT.
  • Company must further be registered for VAT, if revenue is above DKK 50,000 (€6,717), US$7,790), payroll tax, import / export licenses (for business outside European Union), tax, which is deducted at source from employees’ salaries.
  • Take out mandatory industrial injury insurance.

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