Hungarian Payroll Services
Hungarian Payroll
Compliance with the local payroll laws and regulations are vital to a business’ smooth and hassle-free transition, which is where we come in. We offer dedicated Hungary Payroll solutions that can be personalized to your requirement.
We aim to make global expansion easy. We navigate the administration of the Hungarian payroll system for you – and as part of our service, we make the returns and associated payments for wage taxes and social security contributions directly from our payroll system to the local tax authorities
What Hungarian Payroll Options are available for Companies?
Businesses in Hungary have access to a variety of payroll options, depending on their needs:
- Remote payroll: Businesses can operate under a single payroll system for all employees, by adding employees in Hungary to your parent company’s payroll. However, these employees will have to operate under different regulations, which can cause some confusion.
- Internal payroll: You may also operate payroll out of your subsidiary, especially if you are committed to growing your company’s presence in Hungary. However, this does require hiring a dedicated HR staff that understands the local employment and compliance laws.
- Hungary payroll processing company: If you are keen on outsourcing, working with a Hungarian payroll processing company will help in your payroll process – but not when it comes to compliance.
- Hungary payroll outsourcing: An option that solves both payroll and compliance needs – working with a company like Bradford Jacobs. We can handle both your payroll and compliance for all your employees in Hungary. We take the stress of administration off your shoulders so you can focus on your other strengths.
Payroll regulations in Hungary change frequently, and businesses can risk sanctions and financial penalties if they do not comply with these changes. Our payroll service requires staying up to date with these shifting demands – which includes administering returns and associated payments for wage tax and social security contributions directly from our payroll system to the tax authorities. Our role consists of:
- Registering with the National Tax and Custom Administration for a tax number identification number
- Registering with the National Health Insurance Fund (NEAK) to pay social security contributions
- Registering employees with the State Employment Services
- Register with the online Company Gate Services for administration services
- Creating employment contracts for your new employees, in Hungarian and English
- Applying for employees’ special expatriation status (if applicable)
- Calculating employees’ monthly salary and sending them their pay slips
- Researching for any available tax incentives
- Submitting employees’ or employer’s wage tax returns and national insurance forms
- Corresponding with the applicable national authorities regarding payroll changes and payments
- Creating and submitting your company’s annual accounts, administration, and year-end statements
- Creating payment schedules for wage tax, national insurances, and net wages
- Ensuring proficient personal income tax returns for you and your employees
What is required to set up Hungarian Payroll?
The requirements for setting up Hungary payroll will depend on how you establish your presence in the country. If you would like to set up as a subsidiary, you will need to have your subsidiary established first – but this can take some time, depending on where you incorporate as well as the entity type you choose. To start processing payroll in Hungary, you will need:
- A local tax identification number
- Registration with the National Tax and Custom Administration
- Registration with the National Health Insurance Fund
- A local bank account (optional)
- An online “Company Gate” service for administrative purposes
Registering with the authorities and the bank will take at least 5 working days to a few weeks, depending on the documentation required.