Obligations when you employ people.
WHAT EMPLOYERS MUST GENERALLY HANDLE
Personal income tax deducted from salaries Pension contributions Other statutory contributions, depending on size and sector
WHAT THE PAY-AS-YOU-EARN SYSTEM IS
Deducting income tax from employees' pay and remitting it.
WHO IT IS REMITTED TO
The relevant state internal revenue service, based on the employee's residence.
WHY THAT MATTERS
Remitting to the wrong state creates problems for both parties.
WHAT REGISTRATION IS REQUIRED
With the relevant state authority, as an employer.
WHAT PENSION CONTRIBUTIONS INVOLVE
Employer and employee portions, remitted to the employee's pension administrator.
WHAT THRESHOLD APPLIES
The contributory scheme applies to employers above a defined size.
WHAT OTHER CONTRIBUTIONS MAY APPLY
Employee compensation scheme contributions Industrial training fund contributions, depending on size Housing fund contributions, in defined circumstances
WHAT TO ESTABLISH
Which apply to your business, at your size.
WHAT RECORDS TO KEEP
Payroll records Evidence of deductions Evidence of remittance Annual returns filed
WHAT ANNUAL RETURNS ARE REQUIRED
Employer returns to the tax authority, typically early in the year.
WHAT HAPPENS ON FAILURE
Penalties, interest, and personal exposure for officers in some cases.
WHAT TO DO
Engage a payroll provider or accountant.
WHY
The obligations are several, and each has deadlines.
