Payroll

What is payroll? — "Payroll" refers to the process of calculating and distributing wages or salaries to employees for the work performed during a specific period. It also involves managing deductions such as taxes, social security contributions, and other withholdings. In Luxembourg, payroll must comply with local labor laws, tax regulations, and social security obligations.

Who is responsible for payroll processing? — In Luxembourg, payroll is typically managed by the employer or outsourced to specialized payroll service providers or accountants who ensure compliance with Luxembourg labor and tax laws.

What information is included in a payslip? — A Luxembourg payslip typically includes:

What happens if payroll taxes are not deducted correctly? — Employers in Luxembourg are responsible for ensuring payroll taxes and social security contributions are accurately calculated and submitted. If errors occur, they must be corrected quickly, and the employer could face penalties from the Administration des Contributions Directes or the Centre Commun de la Sécurité Sociale.

How is payroll typically managed in Luxembourg? — Many companies in Luxembourg use specialized payroll software, such as Salary.lu or outsource payroll to professional service providers due to the complexity of tax, social security, and labor law compliance.

Synonyms: Wage processing, salary administration, payroll management