Slovakia Payroll Services

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

Slovakian Payroll

Slovakia’s rapidly-developing economic and international profile highlights a variety of options for far-sighted international companies who recognise the obvious potential. As always, barriers and issues come along with the potential. In Slovakia companies need to establish a legal entity in order to hire staff and operate their payroll.

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The World Bank assessed Slovakia’s GDP at US$114.87 billion in 2021, outside the world’s top 50 economies, but with per capita GDP at US$21,088, pushing it up to 45th in the world. The leading economic sector in 2021 was the service sector, accounting for over 60%, which also employs 60% of the workforce, principally in real estate, trade, hospitality and tourism.

Bradford Jacobs’ Professional Employer Organisation (PEO) and Employer of Record (EOR) systems and networks have all the answers to every question your company will encounter before you move into the economy … especially when it comes to operating payroll in Slovakia.

Bradford Jacobs will be at your side every step of the way with expert advice and guidance. Our specialists become your employees’ effective Employer of Record, while staff remain under your daily operational control.

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

Foreign companies planning international expansion by focusing on the Republic of Slovakia, will be moving into a relatively young but rapidly-developing economy. Slovakia was formed in January 1993 when it split from Czechoslovakia – now the Czech Republic (Czechia) – but since the turn of the 21st century has evolved from a centrally-controlled system into a free and open market economy.

Payroll services are a key element if foreign companies are going to make a successful transition into the Slovakia market.

The economy revolves around a service sector supplying 60% of GDP, featuring wholesale and retail trade, hospitality and food services, public administration, and activities around education, health and social services. Industry accounts for 30%. Mining is a major contributor with resources of lead, iron, copper, dolomite, aluminium, gold, coal and zinc in the mountainous regions, while the automotive sector contributes over 40% towards exports.

The most popular choice for a subsidiary is to form a limited liability company, known by the initials SRO, which operates under the Company Law of Slovakia and the Commercial Code. Once the incorporation process is moving, employers must prepare for onboarding their new employees and putting them on the payroll.

Registration procedures generally include:

  • Registering employees with the Social Insurance Agency (Sociálna Poisťovňa, SP) at least one day before they commence work
  • Notifying the SP of any breaks in contributions to sickness, pension or unemployment insurance and report any sick leave lasting more than 10 days
  • Obtaining or verifying the 10-digit Tax Identification Number (TIN) for the employee, which applies only to individuals with an obligation to register for paying taxes
  • Registering employees with the Slovakia Financial Administration (PFS) for taxation

The limited liability company is the most popular business structure for foreign companies establishing a subsidiary in Slovakia. This form is known by the initials SRO and operates under the Company Law and Commercial Code.

Incorporation procedures are through the Commercial Registry and generally include the following steps and responsibilities:

  • Verify unique company name for the subsidiary with the Companies Register with the application from the founders to form the company
  • Supply notarized Articles of Association (or Foundation Deed if being formed by one individual) to the Commercial Registry
  • One shareholder, maximum of 50; can be foreigners and non-residents. At least one director must be a Slovakia resident or have a residence permit. Provide list of directors, executives and shareholders
  • Minimum share capital is €5,000 (US$4,996), paid up contribution of minimum €750 per shareholder. Show financial statement re share capital; proof of bank deposit
  • Establish a ‘reserve fund’ of at least 10% of the capital
  • Provide copy of the foreign company’s trade licence and may be required to prove they are not in default of taxes in the home country
  • Documents can be submitted online if an authorized signature has been notarized, and can be submitted to the local Registry Court, which has authority to forward the information to the Commercial Register
  • Documents must be in Slovak or with a supplementary notarized translation
  • Employers receive their 10-digit Employer Identification Number (IČZ) which is quoted on all official communications for tax and insurance
  • Company must register under the Social Insurance Act no later than the last day before employing their first member of staff, either submitted to the relevant branch of the Social Insurance Agency (Sociálna Poisťovňa, SP) or online via the Central Public Administration Portal
  • Register employees with the Slovakia Financial Administration (PFS) for taxation
  • Employers are entered on the SP’s Register of Employers with form RLZ
  • Register with the Healthcare Surveillance Authority that the company is now making contributions
  • Foreign companies must provide a Slovak translation of their incorporation certificate to the SP
  • Incorporation must be completed within five days of signing documents

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