Norway Payroll Services

Norway Payroll

Making the right move from day one is essential for companies planning international expansion. Norway is no exception – it is one of the world’s most prosperous nations with an economy that has thrived on oil and gas production, shipping, and fishing industries.

However, such a move poses many questions – and at Bradford Jacobs, we have all the answers. Our Professional Employer Organization (PEO) and Employer of Record (EOR) platforms provide complete solutions to every issue your company will face before your planned move into the Norwegian economy.

Our teams step in from the start, locating top-rated talent in Norway then guiding you through such procedures and navigating the administration of the Norway payroll system for you. 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.

The complexities of Norway’s dual system of personal taxation can be daunting – but not for the payroll specialists at Bradford Jacobs. We remove the worry of complying with Norwegian taxation, payroll, and employment laws to safeguard your global expansion plans.

What Norway Payroll Options are available for Companies?

Remote payroll: This option allows businesses to operate under a single payroll system, by adding employees in Norway 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 Norway. However, this does require hiring dedicated HR staff who understand Norwegian employment and compliance laws.

Norway payroll processing company: If you are considering outsourcing, then working with a Norwegian payroll company will help in processing your payroll – but not when it comes to compliance.

Norway 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 Norway. We lift the administrative stress from your shoulders so you can focus on what you do best.

Companies expanding into Norway open a wealth of opportunities for expansion throughout Scandinavia and further afield into Europe – but challenges come alongside the potential benefits. Payroll management is among those challenges, whether your company is considering moving employees abroad or hiring new 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.

A foreign company must establish a legal entity in Norway if it wants to run payroll for its employees. Running payroll in Norway requires keeping up to date with employment, payroll and taxation laws. At Bradford Jacobs, as part of our service, we file returns and associated payments for wages tax, advance tax, and social insurance contributions directly from our payroll system to the relevant authorities.

Outsourcing your payroll in Norway through Bradford Jacobs will streamline your operations by dealing with the following:

• Registering the employee on the Aa Register of the Norwegian Labor and Welfare Administration (NAV), which logs virtually all employer-employee relationships, via the a-melding link
• The Aa Register must include the employee’s Employment ID, type of employment, occupation code, start and end date, working hours and termination arrangements
• Registering with the Tax Administration and Labor and Welfare Administration for remitting employees’ withheld tax and social insurance contributions
• Creating contracts. Employment relationships should be based on written contracts as stipulated by the Working Environment Act

The Aa Register is used by Norwegian organizations such as the Tax Administration, Labor and Welfare Administration, the Labor Inspection Authority, the Police Service, municipalities, and other regional authorities. References on the Aa Register are used to process entitlement to such as sickness and parental benefits.

Additional payroll support includes:

• 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

What is required to set up Norway Payroll?

Companies intending to run payroll by establishing a legal entity in Norway, typically as a limited liability company under the Limited Liability Companies Act, must complete various registration processes. These include:

• Decide on company type, with the typical choice being a private limited liability company, ‘aksjeselskap’ (AS)
• Begin registration process through the Brønnøysund Register Center
• Open a bank account and deposit share capital – a minimum of NOK 30,000 (€2,887, US$3,266)
• Obtain bank’s ‘deed of deposit’ after outside auditor confirms the balance in the account
• Employers must be registered on the Central Coordinating Register for Legal Entities, to receive a unique organization number
• Complete the ‘Foundation of a private limited company’ form
• The private limited company, ‘aksjeselskap’, has the abbreviation AS before or after the company name
• Log necessary documents with the Norwegian Register of Business Enterprises online (fee NOK 5,570, €536, US$606) or via post (fee NOK6,797, €654, US$740)
• Register for Value Added Tax (VAT) if annual turnover expected to exceed NOK 50,000 (€4,811, US$5,433)
• Register for mandatory workers’ injury insurance and occupational pension plan
• Register with the Tax Administration and the Labor and Welfare Administration (NAV) to remit deductions for tax and social insurance

The Register for Business Enterprises must be notified no later than three months after the company is founded.