Serbian Payroll Services

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Serbian Payroll

Embarking on international expansion depends on making the right moves from day one. This is essential for foreign companies establishing their presence to run payroll in the Republic of Serbia in the Balkan region.

Complying with tax filing, payroll regulations, social insurance and employee rights in the Serbian employment market adds up to a testing workload. This is why Bradford Jacobs’ Professional Employer Organization (PEO) platform provides all the solutions to every issue your company will encounter before you move into Serbia’s rapidly developing economy – without the need to follow the costly path of establishing a subsidiary.

Our teams step in from the start, locating top-rated talent in Serbia then guiding you through onboarding procedures and navigating the administration of the Serbian 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.

You may encounter some challenges regarding payroll but with our trusty guide on payroll for Serbia, we have the answer for every question and solutions to every issue.

What Serbian Payroll Options are available for Companies?

  • Remote payroll: This option allows businesses to operate under a single payroll system, by adding employees in Serbia to the 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 Serbia. However, this does require hiring dedicated HR staff who understand Serbia’s employment and compliance laws.
  • Serbia payroll processing company: If you are considering outsourcing, then working with a Serbian payroll company will help in processing your payroll – but not when it comes to compliance.
  • Serbia 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 Serbia. We lift the administrative stress from your shoulders so you can focus on what you do best.

Serbian Payroll Services

Companies advancing their international operations into Serbia open a wealth of opportunities and the chance of further expansion into east and south-eastern Europe, the Balkans and further afield.

Challenges come alongside the potential benefits, however. Payroll management is among those challenges, whether your company is considering moving employees abroad or hiring new staff in-country. Employment laws, payroll and income tax regulations are areas where you cannot afford mistakes.

Foreign companies intending to hire staff and run their payroll in Serbia must establish a legal entity. The most popular choice is to open a limited liability company, known as a Društvo sa Ograničenom Odgovornošću, abbreviated to DOO. This company type requires minimum share capital of €1 and it must be registered with the Business Registers Agency (BRA), part of the Ministry of Economy.

Taking this step before running payroll in Serbia requires an in-depth knowledge of company, employment, and taxation laws, which changed in January 2022 – and keeping up to date with these changes.

However, there is an alternative and simpler route. Bradford Jacobs’ will navigate around these potential pitfalls effectively and efficiently. We recruit the staff in-country and then put into action our comprehensive knowledge of tax and payroll regulations. As part of our service, Bradford Jacobs files returns, and remits associated payments for tax and social security contributions directly from our payroll system to the relevant authorities.

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

  • Obtaining employees’ Tax Identification Number (TIN) from the Tax Administration (Poreska Uprava)
  • Registering with the Social Insurance Institute (Zavod za Socijalno Osiguranje, ZSO)
  • Mandatory registration for health insurance with the Fund for Disability and Pension Insurance via the Central Registry of Compulsory Social Insurance
  • Filing forms for remitting tax with the Tax Administration
  • Withholding and remitting tax and social insurance contributions to the relevant authorities
  • Compiling Personal Income Tax (PIT) returns comprising all income from employment, including bonuses and overtime, as well as benefits in kind
  • Filing returns for income from business, investments, property, and capital gains at varying rates between 10 – 20%
  • Prepare employment contracts, which are generally open-ended or fixed-term and can include a probation period

The above checklist highlights why most foreign companies expanding into Serbia’s challenging business environment hand their payroll to EOR experts 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.

What is required to set up Serbian Payroll?

Foreign companies intending to run their own payroll in Serbia must set up a legal entity in the country. The most popular choice is to form a limited liability company, known as a Društvo sa Ograničenom Odgovornošću, abbreviated to DOO. As with all local companies, in whatever form, the subsidiary will operate under the Serbian Companies Act, which regulates incorporation, management and dissolution.

Requirements and procedures include: 

  • Decide on company type, with the typical choice being a limited liability company, known as a Društvo sa Ograničenom Odgovornošću, abbreviated to DOO
  • Register with the Business Registers Agency (BRA), which is part of the Ministry of Economy
  • Obtain company eight-digit registration number (matični broj, MB) from the Registers Agency
  • Obtain nine-digit company tax number (poreski identififikacioni broj, PIB or TIN) from the Registers Agency
  • Register with the Serbian Statistical Office to receive official registration
  • Register with the Tax Administration Poreska Uprava)
  • Register with the Social Insurance Institute (Zavod za Socijalno Osiguranje, ZSO)
  • Register with the ZSO for mandatory health insurance for employees with the Fund for Disability and Pension Insurance
  • A business bank account and proof minimum share capital of €1 has been deposited
  • Register at least one Serbian citizen as representative to deal with the local authorities

Once incorporated, other steps must be followed to employ staff and operate payroll. The main requirements include:

  • Obtaining employees’ Tax Identification Number (TIN) from the Tax Administration (Poreska Uprava)
  • Registering with the Social Insurance Institute (Zavod za Socijalno Osiguranje, ZSO)
  • Mandatory registration with the ZSO for health insurance with the Fund for Disability and Pension Insurance via the Central Registry of Compulsory Social Insurance
  • Calculating, deducting, and remitting tax and social insurance contributions to the authorities, before the net amount is paid to the employee
  • All transactions lodged electronically with the Tax Administration
  • Prepare employment contracts, which are generally open-ended or fixed-term and can include a probation period. They must be concluded and signed before the employee commences work, with two copies for the employer and one for the employee