Latvian Payroll Services
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 Latvia Payroll solutions that can be personalized to your requirements.
We aim to make business expansion easy. We navigate the administration of the Latvian payroll system for you – and as part of our service, we make the returns and associated payments for income tax and social security contributions directly from our payroll system to the local tax authorities.
What Latvian Payroll Options are available for Companies?
Businesses in Latvia 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 Latvia 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 Latvia. However, this does require hiring a dedicated HR staff that understands the local employment and compliance laws.
- Latvia payroll processing company: If you are keen on outsourcing, working with a Latvia payroll processing company will help in your payroll process – but not when it comes to compliance.
- Latvia 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 Latvia through our PEO-service. We take the stress of administration off your shoulders so you can focus on what you do best.
Latvian Payroll Services
Payroll regulations in Latvia 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 employees with the Office of Citizenship and Migration Affairs for a Personal Identification Code (PIC) that will be used for all matters of payroll and compliance.
- Registering with the State Revenue Service for a Latvian Tax Identification Number (VID).
- Registering with the State Social Insurance Agency (VSAA) to pay social insurance contributions
- Registering with the National Health Service Fund in Latvia
- Registering employees with the State Employment Agency (NVA)
- Creating employment contracts for your new employees, in Latvian 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
Outsourcing payroll is a popular practice for Latvian employers, and it is easy to see why. Outsourcing company payroll saves money and time, and guarantees paid employees, filed tax returns, and fulfilled social security obligations in full and on time. Bradford Jacobs provides the complete service to remove the anxiety and stress from your administration.
What is required to set up Latvian Payroll?
The requirements for setting up Latvia 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 Latvia, you will need:
- A tax identification number
- Registration with the State Revenue Services & the State Social Insurance Agency
- A local corporate bank account
Registering with the authorities and the bank will take at least 5 working days to a few weeks, depending on the documentation required and the bank that you choose.