We run the payroll — you approve it and you're done
AD Financy handles the whole payroll run: salaries, A-tax, labour market contribution (AM-bidrag), ATP, pension and holiday pay, reported to eIndkomst before the deadline. You approve the run, and we take care of the rest.
Payroll can stand alone or form part of a combined agreement with bookkeeping, VAT and the annual report. The price depends on the number of employees and is agreed in advance. See the price level.
What Danish payroll involves
Danish payroll has a handful of moving parts that all have to be right every single month. A-tax is the income tax withheld at source, based on the employee's tax card, which we pull electronically. AM-bidrag is the 8 % labour market contribution. ATP is the mandatory supplementary pension, and on top of that comes any occupational pension from a collective agreement or the employment contract.
Then there is holiday pay. Denmark moved to a concurrent holiday system (samtidighedsferie), where holiday is earned and taken in the same year, and the accrued obligation has to be carried in the accounts. It is the part that most often trips up companies coming from another country's system.
All of it is reported to eIndkomst, the Danish income register, every month. We handle that reporting on your behalf.
Outsourcing payroll
An external payroll provider costs less than a dedicated payroll employee, and you pay only for the number of payslips actually produced. You also avoid the fragility of payroll depending on one person who might fall ill or resign.
We act as your payroll department: we configure the pay types, run payroll at the agreed time each month, and keep track of holiday, absence and pension contributions along the way.
How we work as your payroll provider
Setup. We create employees, pay types, pension schemes and collective agreement rates, so the basis is right from the first run.
Monthly payroll run. We calculate salaries, supplements, absence and holiday pay, and send payslips out to employees.
Reporting. A-tax, AM-bidrag, ATP and pension are reported to eIndkomst and the relevant schemes before the deadline.
Reconciliation. Payroll is reconciled against the bookkeeping, so the figures tie out when the annual report is prepared. Read about bookkeeping.
What does payroll administration cost?
The price depends on the number of employees and how composite the pay structure is. A company with five salaried staff on fixed pay is quicker to run than twenty hourly workers with varying supplements and shifting hours.
The amount is agreed up front and stays fixed, so no extra invoice arrives because a month happened to involve holiday settlement or a new hire. If payroll forms part of a combined agreement with bookkeeping and the annual report, we quote the whole thing together.
Payroll for small and medium-sized businesses
We run payroll for companies from a single employee upwards. For the smallest, the value is typically that you never have to learn the rules at all. For larger ones it is more about having a routine that doesn't break down in a busy month.
If you have both salaried and hourly staff, we handle both in the same run — including overtime, supplements and different pension schemes.
Staying compliant with Danish employment rules
Payroll is a tightly regulated area, and the rules move. The Holiday Act with concurrent holiday, the rates for AM-bidrag and ATP, the holiday pay obligation in the accounts and the reporting deadlines to eIndkomst all have to be right — every month.
We keep up with the changes and adjust the setup before they take effect. If your business is covered by a collective agreement (overenskomst), we load the rates and supplements so payroll follows it automatically instead of having to be checked by hand.
Outsource payroll and save the time
Most smaller companies spend more hours on payroll than they expect — not on the run itself, but on looking up rates, checking holiday balances and working out how a single exception should be handled.
Hand the task over, and your involvement shrinks to reporting changes and approving the run. You also get someone to call when an employee asks about their payslip, instead of having to find the answer yourself.
Frequently asked questions about payroll
What does payroll administration cost?
The price depends on the number of employees and how composite the pay structure is. The amount is agreed up front and stays fixed, including in months with holiday settlement or new hires. If payroll forms part of a combined agreement with bookkeeping and the annual report, we quote the whole thing together.
What do you report to the Danish authorities?
We report A-tax, labour market contribution (AM-bidrag), ATP and pension to eIndkomst and the relevant schemes before the deadline every month. You do not have to watch the dates yourself.
Can you run payroll for both salaried and hourly staff?
Yes. We handle both in the same payroll run, including overtime, supplements, varying hours and different pension schemes.
How many employees do I need before it is worth outsourcing?
We run payroll from a single employee. For the smallest companies the value is mostly that you never have to learn the Danish rates, holiday act and reporting deadlines in the first place.
Contact AD Financy today
Shall we run your payroll? Call +45 71 46 97 28, write to info@adfinancy.dk, or fill in the form below. Let us know how many employees you have, and we'll come back within one working day with a free quote.