Payroll services in Bulgaria can be offered by one of our specialists for business owners in this country. There are several procedures through which the salaries are calculated and distributed in the firm, and in the following lines you can read important information on this topic, mentioning that you can rely on the support provided by our accountants in Bulgaria who have experience in payroll in Bulgaria.
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Payroll services we offer in Bulgaria
Every company needs specialized services and experts in the field of payroll. Everything related to calculating and paying salaries in a company can be successfully managed by our specialists in this field. Here are broadly what payroll means in Bulgaria:
- Using relevant information related to calculating salaries in a company.
- The bonuses and benefits offered will be calculated before paying the salaries in the company.
- Wage taxes are considered when making salary calculations for a company.
- The payment of salaries is made according to the established terms if such services are outsourced.
These are some of the payroll services in Bulgaria. For more information, you can contact our specialists with experience in this field. We are here to help you from the beginning if you want to invest in Bulgaria and set up a company.
How is payroll set up in Bulgaria?
When opening a company in Bulgaria, there are several important steps to follow, including those related to payroll. Here are some important aspects in this regard:
- The registration of a company is done with the Bulgarian Trade Register, after verification and reservation of the name.
- A bank account is opened in Bulgaria for the company’s future financial operations.
- The company is registered for the payment of taxes and social contributions. Tax ID is issued, and one of the most important taxes is VAT in Bulgaria.
- The company’s employees are registered with the relevant authorities in Bulgaria.
Outsourced accounting services in Bulgaria are recommended. Payroll in Bulgaria is an important service and involves the calculation of salary taxes as well as their payment. Salaries are also distributed to employees’ accounts, and a payroll specialist in Bulgaria has experience in this field.
It is advantageous to collaborate with an accounting firm in Bulgaria that deals with payroll in the firm. The costs for such services are calculated taking into account the type of company, size, number of employees, and other such aspects. Get in touch with us if you want more information about our accounting services in Bulgaria.
Payroll calculation step
Payroll specialists in Bulgaria know every step in calculating salaries for a company’s employees. Tax deductions are taken into account and the necessary documents are prepared in this regard. All payroll records can be issued automatically, with the help of special platforms used by a specialist in the field. Once all the information has been checked, you can proceed to the issuing of payslips and their signing by the managers and directors in charge.
Payroll-related expenses are registered in the company, and the issued documents are used for full financial reporting in the firm. Also, all documents related to the salaries of a company’s employees must be registered with the relevant financial authorities.
Employment procedures in Bulgaria
Employing companies must draw up employment contracts for the people they want to hire in the company, and the registration of this document with the relevant authorities should happen within a maximum of 3 days. Here is some important information that should be found in an employment contract in Bulgaria:
- Details about the company, as well as the activities of the new employee.
- Working hours, respectively 40 per week, according to the legislation.
- The obligation to pay overtime.
- Information about working conditions, in the office or outside it.
- The trial period for a new employee is up to 6 months.
- In Bulgaria, according to the Labor Code, workers have the right to 20 days of paid annual leave, and this must be stipulated in the employment contract.
- In the case of medical or sick leave, the first 3 days are paid by the state, in the proportion of 70% of the gross salary.
- Maternity leave is 410 days in Bulgaria, and compensation is 90% of the salary and paid by the state.
- The contract must also include information about the situations in which it can be concluded, with prior notice.
Registration for the payment of taxes in Bulgaria for a newly established company can be done with the help of our specialists in the field. Moreover, our local agents can manage all the formalities related to the necessary licenses and permits to properly start a company. In addition, you can request accounting services and benefit from help for payroll in Bulgaria.
Salary details in Bulgaria
The minimum wage in Bulgaria is set at around BGN 933, according to the 2024 data and changes. It is important to note that the income obtained by individuals in Bulgaria is subject to taxation as follows:
- 4.8% for health insurance fund,
- 8.22% for state pension fund,
- 2.8% for additional mandatory pension insurance,
- 2.1% for general illness and maternity fund,
- 0.4% – 1.1% accident at work and occupational disease fund,
- 0.6% for unemployment fund.
As for the social contributions paid by the employer, the following apply:
- 6.58% for state pension fund,
- 2.2% for additional mandatory pension insurance,
- 1.4% for general illness and maternity fund,
- 0.4% for unemployment fund,
- 3.2% for health insurance fund.
Those interested in payroll in Bulgaria can discuss all aspects with our specialists. We are here to offer you all the necessary support for the company you own in Bulgaria.
Tax withholding and reporting in Bulgaria
In Bulgaria, company owners are responsible for withholding income tax from the salaries of employees. This tax should be remitted to the Bulgarian fiscal authorities the following month, until the 25th. Here are other important aspects about tax withholding and reporting:
- Company owners must prepare an income certificate every year with information about salaries and social contributions paid.
- All business owners in Bulgaria must submit an annual declaration with the salaries paid in the company to the relevant tax authorities. This is done the following year, with February as the deadline.
- An annual tax return is made until the 30th of April for residents with income from other sources than employment in Bulgaria.
With the help of our accountants in Bulgaria, you can better understand the taxation system in this country, as well as everything related to payroll for the company you own. Our services can be personalized according to the client’s needs, so you can contact us for more details.
Termination of a Bulgarian work contract
In the case of employees of a company, the termination of the employment contract is done with prior notification, either from the employee’s side or from the employer’s side. There is the possibility to announce this even 6 months in advance if the respective employment contract allows this. With the termination of the employment contract, the employing company must provide the documents certifying that all social contributions have been paid, as well as the vacation days that were not taken by the employee.
We mention that an employment contract in Bulgaria can be concluded with the consent of both parties or when one of the parties decides that the collaboration can no longer exist. In the case of the employer, he/she can apply for dismissal.
What is statutory reporting in Bulgaria?
Our specialists in accounting and payroll can also deal with reporting to the Bulgarian financial authorities. There are a number of documents that must be registered with the relevant institutions, according to the laws in Bulgaria. Our specialists are in contact with the Labor Office, but also with institutions that deal with the collection of social contributions and relevant taxes. Instead of setting up an entire department to deal with payment of wages in the company, it is better to choose the payroll services in Bulgaria, offered by our experts, at advantageous costs.
Why outsource payroll services in Bulgaria
Payroll services in Bulgaria are very important for a company registered in this country. With the help of dedicated services, salaries can be calculated and distributed in the firm, according to employment contracts and internal regulations. Even if you want to establish an accounting department in the company, it would be advisable to consider outsourcing payroll services in Bulgaria.
You will understand that the costs related to these services are much more advantageous compared to those dedicated to a department in this sense. In addition, you will have the guarantee that you are working with a team of professionals, who will be at your disposal with comprehensive information. Therefore, if you want more information about payroll in Bulgaria and the outsourcing of these services, we recommend that you talk to our experts in the field.
Making investments in Bulgaria
Bulgaria continues to attract the interest of foreign investors who want to generate large profits in this part of Europe. The country offers a stable and strong business climate, and here the booming economy also helps. Many entrepreneurs discovered a real business destination in Bulgaria, and most foreign investments are absorbed by the country’s capital, Sofia. Here are some advantages offered by Bulgaria to those who want to make investments:
- Real GDP in Bulgaria in 2023 grew by around 1.8%.
- Bulgaria’s GDP value was around EUR 93.9 billion in 2023.
- Around BGN 933 is the minimum wage in 2024, after an increase of about 19.6%.
- Austria, the Netherlands, Italy, and Germany are the main investors in Bulgaria.
Why work with our specialists
In addition to our local agents who can handle everything related to setting up a company in Bulgaria, you can also call on our accountants who can provide payroll services in Bulgaria. The experience in the field speaks for itself when we work with our clients because we rely on professionalism, efficiency, and confidentiality.
Do you want to open a startup in Bulgaria? You can contact our local agents and discuss all the aspects that interest you. Our specialists can prepare the documents required by the authorities, and among them, the Articles of Association are the most important. Depending on the activities you want to develop, you will need a business license, but all the formalities can be explained to you by our agents. On the other hand, if you want to know more about payroll services in Bulgaria, do not hesitate to contact our team of specialists in company incorporation in Bulgaria. We can also help international entrepreneurs with starting a company in Bulgaria.