Did you just hire your first employee or are you about to? The first thing you should do is to register as an employer at www.virk.dk.

You can either report the pay in our payroll system E-income (eIndkomst), or you can pay an accountant or payroll bureau to take care of it for you.

The Danish Parliament (Folketinget) has passed an aid package for corona-hit businesses

As a result, the deadline for paying A-tax and labour market contributions are extended for the months of April, May and June 2020.

Please read more at www.skat.dk/corona-aid 

Here you can learn more about:

  • What you need to do before you submit your report
  • How you report pay
  • What you need to be aware of in relation to A-tax and labour market contributions
  • Payslips for your employees
  • Transport allowance
  • Employee benefits
  • Non-Danish labour
  • Help for newly registered employers

Before you are can report pay or remuneration to the Danish Tax Agency (Skattestyrelsen) you need to do two things:

  1. Register as an employer at virk.indberet.dk
  2. Access eIncome. In E-tax for businesses under Ansatte (Employees) we have a guide on how to access eIncome. (In Danish only).

After you have done this, you will be able to report to eIncome or have a payroll bureau or an accountant to take care of it for you.

You need to choose whether you want to pay a payroll provider or run payroll yourself using our payroll system E-income (eIndkomst).

Using a payroll bureau

Paying a payroll bureau could make the whole process easier. They provide you with documented bookkeeping and, as a rule, it should not take a lot of your time. Please note that you are still responsible for ensuring that we get the correct information and payments in due time.

You can search for payroll bureaus on the Internet and read more about their prices and the services they offer.

Using an accountant

You can also pay an accountant to handle the reporting and bookkeeping for you.

Running payroll yourself

Reporting pay via E-income is free. You have to spend time getting to know the system and each month you are responsible for reporting and transferring payments to us. In addition, you are in charge of your own bookkeeping.

If you choose to run payroll yourself, you can read more about it and get help in our Danish video guide Reporting pay (E-income) .

You need to deduct A-tax and labour market contributions from your employees’ pay. There may be other things you should be aware of, for example if your spouse or your child works for your business.

Read more in Danish about Tax on employee salaries.

As an employer, you should provide your employees with a payslip once a month. It is good practice to include detailed information about matters related to your employees’ pay on their payslips. Payment information may vary depending on the type of employment.

A payslip should include:

  • name, address and CVR no. (business reg. no.) of employer
  • name, address and civil registration no. (CPR no.) of employee along with any employee no.
  • pay period
  • gross salary (before tax is deducted)
  • A-tax deducted
  • labour market contributions deducted
  • number of working hours
  • pension contributions - including ATP (labour market supplementary pension)
  • net salary (after tax is deducted)
  • information about tax cards and withholding rate
  • holiday pay
  • any other entitlements, like free telephone or paid lunch break
  • pay date
  • tax card (deductions and withholding rate)
  • A-income (tax withheld at source) before deduction of labour market contributions (current period and year)
  • tax deducted at source (current period and year)

Transport allowance may be tax deductible depending on various matters. Read more in Danish about Transport allowance.

Read more about Employee benefits and how they are taxed.

When you employ foreign labour, these employees are liable to pay tax in Denmark. Read more about Foreign labour.

We offer free information meetings for start-ups. Read more about our Information meetings and webinars.

Get help with other aspects of Starting a business.