Payroll

The Bulgarian legislation obliges each and every company in business to have at least one Labor contract
or at least one active Management contract.

Labor contract must be registered till the 1st working day, employee cannot start his/her 1st working without having
signed two important documents: the Labor contract and NRA confirmation report.

We provide our Clients’ with comprehensive support in managing human resources & payroll for their
Bulgarian entity. This entails ensuring compliance with Bulgarian labor laws, processing payroll accurately &
timely, managing employee benefits, and potentially assisting with work permits (my lawyer’s contribution)
for third-country nationals if local talent is scarce.

As part of their operations, our Clients frequently send employees to work in other EU countries.
So, we provide them with the required assistance with paperwork, particularly A1 forms, to ensure compliance
with EU regulations when their employees are posted in other EU member states.

I. Basic Payroll Services:
1. preparation of monthly payroll calculation,
2. preparation of payslips for employees,
3. preparation of payroll breakdown for accounting purposes,
4. preparation and submission of behalf of the client of all required by Bulgarian regulations social insurance
declarations and tax returns,
5. preparation of annual closing in respect to social insurance and personal income tax (if required by the
Bulgarian regulations),
6. filling out details in employment record and social security contributions books, certification of
lengths of service,
7. provide reports to management,
8. keeping comprehensive files on all employees,
9. Calculation of sick leave and annual leave.
II. Additional Administrative Payroll services:
10. preparation of the documents upon the start of the employment process.

11. registration and pre-registration of the labor contracts in the National Revenue Agency.
12. preparation of the documents in case of change in the employment status.
13. drafting of the civil contracts, management contracts and annexes to such contracts.
14. preparation of documents for retirement and income.
15. preparation of documents for reception of cash benefits and social assistance.
16. maintenance and administration of the labor books of the employees.
17. preparation and administration of other labor and social security documents (applications, orders, declarations, memorandums).
18. preparation of documents for termination of the relations with an employee and issuance of all necessary certificates.

Yes, as the only opportunity to have immediate IBAN opened @ prestigious international banking, BG branch
is a Bulgarian citizen participation, will be a friendly cost/consideration depends on time engaged.

It details pay schedules, overtime rules, paid time off accruals, and any bonuses or commissions offered.
Allowances: These are additional payments made on top of the base salary to compensate for
work-related expenses.

Basic information, such as the employee’s name, address, phone number, email, bank details,
social security number, date of birth and marital status. Financial information, including tax ID,
previous payslips, existing insurance coverage, tax reports, and more.

The three easiest ways to pay your employees are with cash, direct deposit, or paper checks.
Direct deposit is fast, affordable, and fairly easy (after the initial setup process). It’s also more secure
than paying with cash or by paper check. As long as your payroll system and bank accounts are
set up correctly, the direct deposit process means your workers receive their pay quickly without
going to a bank.

Some of the most frequent payroll issues are:
• Incorrectly calculating pay
• Improperly classifying employees
• Not reporting all taxable compensation
• Not meeting reporting and payment deadlines
• Not using the correct tax tables
• Not keeping good records
• Improperly withholding garnishments

A person who does not indicate or incorrectly indicates data in the tax return, leading to the determination of
the tax in a smaller amount or to exemption from tax, shall be charged with a penalty or a pecuniary sanction in
the amount of up to BGN 1,000. A person who does not submit in deadline for a tax return shall be charged with
a penalty or a pecuniary sanction of up to BGN 500.