Hiring your first employee?

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 E-income. In E-tax for businesses under Ansatte (Employees) we have a guide on how to access e-Income (in Danish only).

After you have done this, you will be able to report to E-income 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).

Please find the reporting deadlines in E-income and payment deadlines for A-tax and labour market contributions under A-tax and labour market contribution deadlines at the page Payment and deadlines.

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.

Don’t forget 3 things when you pay the salary to your employees each month:

• You have to withhold A-tax and labour market contribution on the salary of your employee
• You have to report salary, A-tax and labour market contribution to the Danish Tax Agency (Skattestyrelsen)
• You have to pay A-tax and labour market contribution to the Tax Agency.

There may be other things you have to pay special attention to, it could be if your spouse or your child work for your business.

Read more in Danish about tax on the salary of employees. 

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 non-Danish labour, these employees are liable to pay tax in Denmark. Read more about non-Danish labour.