Payroll Services Bulgaria (Update 2023)
Businesses in Bulgaria have diverse payroll needs and the task of SofiaOffices is to help our clients choose the right payroll service for their needs.
Our aim is to make the payroll service simple. We are in the position to provide online payroll services that are best for the specific needs of the business whether it is a small business, middle-size companies or corporations, sole proprietors and household employees.
SofiaOffices company offers high-quality payroll administration services and flexible corporate payroll processing.
Our aim is to offer our clients optimization of the payroll processes they have to go through, to simplify their payroll administration and to minimize the risks. We provide complex payroll management and solutions for the employers of every size and corporate structure.
SofiaOffices payroll services include payroll administration, payroll management, payroll processing of salaries and taxes.
Our monthly payroll calculations cover the management staff, the expatriate employees, the employees under civil contracts.
Our heavily-trained employees further make calculation of the social security and taxes for payroll and take care of the employees’ payroll tax filing.
By leaving the payroll services with SofiaOffices, the companies get assistance with the payments of the net salaries and state liabilities to the state budget and with submission of all necessary reporting documents to the Bulgarian authorities. They avoid tax penalties, rely on discretion and can concentrate on their business activities and their current tasks.
What Basic Payroll Services covers
- – Calculation of the staff’s wages
- – Preparation of payrolls and payment documents in connection with social security contributions and taxes
- – Filling out details in employment record and social security contributions books, certification of lengths of service
- – Provide reports to management
- – Keeping comprehensive files on all employees
- – Handling forms 1 and 6 – Presentation of information on the persons paying social security before the National Social Security Institute (NSSI) and NRA
- – Calculation of sick leave and annual leave
Additional Administrative Payroll services
- preparation of the documents upon the start of the employment process;
- registration and pre-registration of the labor contracts in the National Revenue Agency;
- preparation of the documents in case of change in the employment status;
- drafting of the civil contracts, management contracts and annexes to such contracts;
- preparation of documents for retirement and income;
- preparation of documents for reception of cash benefits and social assistance;
- maintenance and administration of the labor books of the employees;
- preparation of documents related to retirement of the employees;
- preparation and administration of other labor and social security documents (applications, orders, declarations, memorandums);
- preparation of documents for termination of the relations with an employee and issuance of all necessary certificates;
- maintenance of the employees’ records in perfect condition.
Payroll services procesing
- processing of the variable monthly payroll information (additional fees payments concerning the professional experience, the work on public holidays, the night shifts, the irregular working hours in attendance of an approved schedule);
- processing and calculation of the vacation days and sick leaves;
- processing of the changes in the status files of the employees in the Payroll software – changes in the wages, method of remuneration, working positions, etc .;
- organization of the calculation of the monthly gross and net wages, calculation of all outstanding social and health insurances, the income tax, etc .;
- preparation and filing of statutory reports and statements which are required by the law.
SEE ALSO :
Payroll Services in Bulgaria FAQ
What are the payroll processing requirements in Bulgaria?
What information is needed to set up payroll in Bulgaria?
1. Employer’s legal entity details (name, address, Registration Number, Tax Number, etc.)
2. Employee’s personal information (name, address, Social Security Number, etc.)
3. Employee’s employment details (job title, start date, salary, etc.)
4. Bank account details for payroll payments
5. Tax rates and deductions (social security, pension, income tax, etc.)
6. Any other mandatory benefits (health insurance, unemployment insurance, etc.)
7. Software or other technology needed to process payroll.
What taxes are applicable when processing payroll in Bulgaria?
When processing payroll in Bulgaria, employers must pay taxes to the National Revenue Agency, such as social security contributions, income tax, health insurance and accident insurance. The employer must pay a social security contribution of 25.8% of gross wages and the employee must pay a social security contribution of 11.8% of gross wages. The employer must also pay an income tax of 10% on all wages. Furthermore, employers must pay health insurance contributions of 4.8% of gross wages, and accident insurance contributions of 0.2% of gross wages. Additionally, employers must pay a levy of 1.3% of gross wages for unemployment insurance.
What is the legal minimum wage in Bulgaria?
As of 2023, the legal minimum wage in Bulgaria is €398 (BGN 780) per month for all workers over 15 years of age. This does not include any bonuses, allowances or other forms of compensation.
Are there any additional benefits or deductions for payroll in Bulgaria?
Yes, there are several additional benefits and deductions for payroll in Bulgaria. These include:
1. Social security contributions, which are split between employers and employees.
2. Employer-funded healthcare contributions.
3. Employer-funded pension contributions.
4. Income tax deductions, including deductions for travel and education expenses.
5. Deduction for training and development expenses.
6. Deduction for childcare expenses.
7. Deduction for medical expenses.
8. Deduction for housing expenses.
9. Deduction for charitable donations.
10. Deduction for union fees.
What are the reporting requirements for payroll in Bulgaria?
Payroll reporting in Bulgaria is handled by the National Revenue Agency (NRA). Employers are required to submit payroll information to the NRA on a monthly basis. This includes salaries, wages, and benefits paid to employees, as well as details of any deductions and contributions made. This information must be submitted electronically, via the online portal of the NRA. Employers are also required to provide an annual report to the NRA, detailing the total amount of wages and salaries paid during the year. In addition, employers are required to make social security contributions in respect of each employee, and submit a quarterly report to the NRA detailing these contributions.
What is the statutory time frame for payroll processing in Bulgaria?
The statutory time frame for payroll processing in Bulgaria is twice a month, on the 15th and the last day of the month. The employer must submit the payroll declaration to the Bulgarian National Revenue Agency (NRA) within 3 working days after the payment date. The employer must pay the withheld taxes and national social security contributions within 5 working days after the payment date.
What are the applicable labor laws in Bulgaria?
The main labor laws in Bulgaria are the Labor Code, Social Insurance Code, Employment Promotion Act, and the Employment and Social Security Act. These laws cover topics such as working hours, holidays, leave, wages, collective bargaining, and more. Additionally, the Bulgarian Constitution and international labor conventions ratified by Bulgaria, such as the International Labour Organization (ILO) conventions, also apply.
What is the process for making payroll corrections in Bulgaria?
Payroll corrections in Bulgaria must be handled according to Bulgarian labor law. The employer is responsible for making any necessary corrections to the payroll. The first step is to identify the errors and make a list of the corrections that need to be made. The employer must then contact their payroll provider and provide them with the necessary information to make the corrections. The payroll provider will then make the necessary changes to the employee’s payroll records. Once the corrections have been made, the employer must inform the employee of the changes and any resulting adjustments to their pay. Additionally, the employer must inform the tax authorities of any changes to the employee’s tax liability.
Are there any special payroll services available in Bulgaria?
Yes, there are a number of payroll services available in Bulgaria. These services include payroll administration, payroll processing, payroll tax filing, payroll calculation and payroll reporting. Additionally, many companies offer additional payroll services such as employee benefit administration, time and attendance tracking, and employee data management.