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Updated on December 11, 2024

From Company Creation to Payroll Management

A step-by-step guide to starting a company and managing payroll in Luxembourg, designed for businesses of all sizes.
Luxembourg business setup and payroll management tools
Welcome to our comprehensive guide, tailored for entrepreneurs and HR professionals navigating the process of creating a company and managing payroll in Luxembourg. We cover each step, from legal setup to payroll software and compliance, helping you streamline your operations efficiently.

This guide is segmented into sections that offer detailed insights, including choosing payroll software, understanding legal compliance, and common pitfalls to avoid.
  1. Introduction to payroll in Luxembourg
    Master the fundamentals of Luxembourg's payroll system, from key institutions to essential obligations and compliance requirements.
  2. Steps to start a business in Luxembourg
    Learn the essential steps to establish your business in Luxembourg, from choosing a legal structure to setting up your payroll system and hiring your first employee.
  3. Choosing the right payroll solution
    Compare internal management versus external services and learn how modern solutions can simplify payroll processing while ensuring compliance and cost-effectiveness.
  4. Managing employment contracts
    Understand different contract types, essential elements, trial periods, and proper documentation requirements for employment agreements in Luxembourg.
  5. Calculating salaries and social contributions
    Learn the essential components of Luxembourg salary calculations, from basic pay to social security contributions and tax deductions.
  6. Monthly payroll processing
    Master the monthly payroll cycle in Luxembourg, from preparation to final payments, while meeting all deadlines and compliance requirements.
  7. Managing leave and absences
    Learn about different types of leave entitlements, documentation requirements, and effective management practices for employee absences in Luxembourg.
  8. Payroll errors and how to avoid them
    Understand common payroll mistakes in Luxembourg and learn effective prevention strategies to maintain accurate processing and compliance.
  9. End-of-year payroll: recap and fiscal obligations
    Master the year-end payroll process in Luxembourg, including special considerations for December, documentation requirements, and deadlines.

Why not try Salary for yourself and see how easy payroll can be?