Payroll accountant

What it means

A payroll accountant is a professional who calculates wages, contributions and income tax advances, registers and deregisters employees with insurers, files monthly reports and carries out the annual tax reconciliation. They are responsible for employees receiving correct pay and the state receiving correct contributions.

The job requires knowledge of the Labour Code, the Income Tax Act, the social and health insurance acts and the rules on travel allowances. The rules change almost every year, often during the year as well, so a payroll accountant must keep learning and follow amendments closely.

Deadlines are strict and recurring. Wages are paid on payday, contributions and tax advances must be paid by set dates in the following month, and monthly contribution statements must be sent electronically to the insurers. Delays mean fines and penalties for the employer.

How it works in practice

The basis of the work is payroll inputs: attendance, hours worked, overtime, premiums, holidays, sick leave and contract changes. Their quality and timeliness determine whether pay is correct, so it is worth agreeing a firm deadline for submitting them.

The payroll accountant prepares payslips, the payroll summary for the books, payment orders and reports for the Social Insurance Agency, health insurers and the tax office. When an employee joins or leaves, they handle registration and deregistration within the prescribed deadlines.

At the start of the year they carry out the annual reconciliation of tax advances for employees who request it and file the annual payroll tax report. Smaller companies often use payroll outsourcing, with an external accounting firm doing this work.

What to watch out for

A payroll accountant handles sensitive personal data such as personal identification numbers, health information and enforcement orders. The data must be protected, access limited to authorised persons, and external processing requires a data processing agreement.

Payroll errors are hard to correct because they involve several parties at once: the employee, the insurers and the tax office. A correction means amended reports and sometimes additional payments with penalties. Checking calculations before payday and clear cover arrangements reduce the risk.