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Payroll in SkSlovak Republic.

Population

5,460,185

Languages

1.

Slovak

Country Capital

Bratislava

Currency

Euro (€) (EUR)

The Slovak Republic, also known as Slovakia, is a landlocked country in Central Europe that belongs to the European Union (EU). The country borders other key Central European countries such as Poland, Ukraine, Hungary, and Austria. With its mostly mountainous territory, the Slovak Republic also offers beautiful, scenic landscapes.

Despite all the advantages of an expansion to the Slovak Republic, there are still certain challenges. For example, you need to find a Slovak Republic payroll option that fits your business goals. Then, you need to meet tax requirements, follow labor laws, and manage other issues of compliance — all while running your new location and parent company. Instead, count on G-P for Slovak Republic payroll outsourcing to make your expansion faster and easier.

Taxation Rules in the Slovak Republic

Slovak tax residents are liable to personal income tax on their worldwide income, subject to provisions under applicable double taxation treaties. The tax year is the calendar year and the income is taxed at a progressive tax rate of 19 % and 25 %.

The tax rates applicable for income derived in 2022 are:

  • At which annual taxable income (except for income from business activity. the capital and 19% dividend income) up to EUR 38,553.01 is taxed.
  • At which annual taxable income (except for income from business activity, capital, and 25% dividend income) above EUR 38,553.01 is taxed.

Slovak Republic Payroll Options for Companies

Your expansion doesn’t have to follow a linear path. You can choose your Slovak Republic payroll option from these four options:

  • Internal: If you have a large subsidiary, you can set up an internal Slovak Republic payroll. This solution is a great one for companies that plan to operate in the Slovak Republic for a long time, but you’ll need a global compliance expert.
  • Remote: Your second option is a remote payroll through your parent company. If you have many employees from different countries, you need to make sure you’re following the right laws for each country.
  • Local outsourcing company: A Slovak Republic payroll processing company will outsource your payroll for you, but you’ll still be held responsible for compliance. If you don’t have a labor law expert, you’ll need to hire one.
  • Global PEO: G-P offers Slovak Republic payroll outsourcing to make your expansion easier. We can act as the Employer of Record on your behalf to help you expand without worrying about compliance.

How to Set Up a Payroll in the Slovak Republic

Your company has to wait to set up your Slovak Republic payroll until you establish a subsidiary in the country. It can take weeks or months to incorporate, which delays plans to hire, provide compensation and benefits, and more. Instead of facing a delay, take advantage of the fact that G-P will help you start work fast through our global expansion solution, including Slovak Republic payroll outsourcing. With our experts on your side, you can operate every day without worrying about fines or delays.

Entitlement/Termination Terms

Enacting strong entitlement and termination terms in your employment contracts before choosing a Slovak Republic payroll option will help you come to a clear agreement with employees. The Slovak Republic requires the use of probationary periods for up to three months, and you need to provide two months of notice before terminating an employee. Your employees should get severance pay depending on the reason for termination.

Payroll Processing Company in the Slovak Republic

G-P will help you open a new location without additional stress. Contact us today to learn more about Slovak Republic payroll outsourcing and our other services.

Disclaimer

THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). G-P does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect G-P’s product delivery in any given jurisdiction. G-P makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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