If you pay wages, you are a wage earner, which means you have employees working. If something goes wrong in the payroll calculations and you have everything in order when it comes to paying wages, you will quickly feel a change in morale.
Each employee's salary is personal and we at Fastland of course maintain the utmost confidentiality when it comes to salary processing and salary calculation.Salary can be monthly, hourly for hours worked and it is important for employees to know their rights. For the employer it is important to know their obligations, comply with laws and regulations and pay the public fees that come with having employees on the payroll.
Each employee's salary is personal, and we at Fastland naturally maintain the utmost confidentiality when it comes to payroll processing and salary calculations.
Salary-related expenses
Salary-related expenses include, for example, union and pension contributions. They are most commonly a percentage of wages (%), and the employer deducts them from the payslip and remits them to the relevant party on behalf of the employee.
The employer's costs on top of the employee's salary are 19.95%. Then, the employee's vacation and sick leave entitlements must be taken into account, and if he is a member of a union, he is also entitled to vacation pay and December pay.
Salary-related expenses
At Fastland, we handle payroll processing and payroll payments. We ensure that your employees receive:
- Correctly calculated salary
- Salary payments on time
- Maintain rights with trade unions and pension funds
Withholding tax
In the current environment, as of January 2024, there are three income tax brackets for employees:
- The lowest level is 31.48% for salaries up to ISK 446,136.
- The middle level is 37.98% and is for salaries from 446,137 to 1,252,501 ISK.
- The highest level is 46.28% and is applied to salaries in excess of ISK 1,252,501.
Personal discount per month, from January 2024, is 64,926 or 779,112 kr. for the year 2024.
When calculating employee salaries, it must be taken into account that payments to a pension fund affect the tax base of wages, as employee contributions are exempt from income tax.
Submissions
It is most common for returns to be submitted electronically to unions and pension funds, directly from the employer's payroll systems. At Fastland, we have accumulated knowledge and highly trained work methods that ensure that all returns are submitted on time.
