Did you just hire your first employee or are you about to?
Here you can learn more about what you need to do before you submit your report, how you report pay and deduct tax etc.
Before you submit your report
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 directly or hire a payroll bureau or an accountant to report to E-income for you.
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 online 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).
A-tax and labour market contributions
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.
Payslips for your 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.
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
any other entitlements, like free telephone or paid lunch break
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)
You may pay transport to your employees
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.
Employing foreign labour?
When you employ foreign labour, these employees are liable to pay tax in Denmark. Read more about Foreign labour.