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Payroll management in Hungary Payroll management in Hungary

Everything you need in one place

Due to our decades-long experience, we are able to provide complete payroll services, from processing through to reporting and consultancy, regardless of the area your business operates in or the number of employees you have.

ITL Payroll consultants provide our clients with comprehensive payroll accounting, calculation of monthly net wages, payable taxes and contributions. 

Our consultants possess a high-level knowledge of the legal & professional environment, practical software set-up experience and an understanding of complex calculation methods.

Thanks to ITL Payroll’s strongly regulated, standardized payroll and reporting processes, which rely upon a systematic, high-level approach, our consultants have the ability to meet mandatory deadlines for monthly payroll and reporting and to closely cooperate with the authorities.

Our payroll management services encompass both additional tailor-made services and standard recurring, year-end payroll:

  1. Set-up of payroll calculation system 
    • Payroll representation and data provision 
    • Payroll keeping 
    • Employer’s certificates and annual tax certificates (tailor-made for client’s needs)
    • Parallel payroll processing runs
  2. Quarterly statistical reports, returns, notifications and sending them to the authorities (and ad-hoc reports such as HR statistical reports can be provided upon request)
  3. Sending monthly payslips to employees electronically (password protected)
  4. Management of absence and working time

For in-country payroll, we also take care of the development and preparation of the GL posting file.

We can take care of: Digital payslips | Payments | Employee expenses system | Approval workflows | Employee/Manager self-service

Besides recurring and year-end payroll services and the standard services for new hires and leavers, our professionals have the ability to answer any questions that come up in relation to payments, payroll and also in reference to the labour code. These are the types of consultancy services we offer to companies and individuals:

  1. Payroll consultancy
  2. Advice on the labour code
  3. Consulting on HR procedures
  4. Legal advice on taxes or on Hungarian law in relation to employment

Thanks to the ability of our consultants to closely cooperate with the authorities, in case of payroll audits (internal or external), they will assist and represent you in communications with state authorities thanks to the power of attorney and also provide you with full support during labour, social and health security inspections executed by local authorities.

Payroll management service takes place through a management program where a whole series of data is automatically calculated, which, once processed, generates downloadable reports that can be used to have control over employee payroll management, or, for individuals, to gain a complete overview of the payroll situation.

Employers in Hungary must comply with certain withholding requirements when processing payroll. 

In principle, this involves withholding income tax and social security contributions from employee salaries and submitting them to the relevant authorities. 

Employee social security contributions in Hungary cover unemployment insurance, health insurance and pension funds – and are calculated as a percentage of salary.

Social security born by the employer is 15.5% + 1.5% training contribution total 17.0% and the deductions are 15% for personal income tax and 18.5% social security deduction.

Under Hungarian law, companies have a retention obligation for certain types of documents. Section 169 of the Hungarian Accounting Act stipulates that the company’s original accounts and records (the “company books and records”) have to be retained for at least eight years.

Act LXXXI of 1997 on Social Security Pension Benefits section 99/A stipulates that the employer has to keep all employment and social security documents related to the company’s current and former employees for five years after the employee reaches retirement age.

Our consultants offer comprehensive advice on all employment issues at work and those related to the payment of taxes on contributions, always in relation to employment.

Request an appointment with our consultants to optimally manage your employees’ pay packages. Contact us now!

Thanks to many years of experience in the field, we have regular contacts with local authorities, which contributes to significant stability in our work, and we pride ourselves on always monitoring any changes in legislation.

At ITL Payroll, we are striving to provide services for a better workforce administration, effective payroll processing and continuous research for solutions to control payroll costs.

Moreover, we can always count on close cooperation with the ITL Group’s fellow professionals such as our partners in ITL HR Solution, ITL Tax Advisor, ITL Accounting and Lajos Law Firm.

Meet our Head of Division

Szandra Bartók

ITL Payroll Head of Department

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