Understanding Payroll Processing in Denmark

In Denmark, businesses must register as an employer in order to prepare payrolls for employees, in addition to their existing VAT registration. This can be checked on the SKAT Erhverv website. To register with a payroll system, such as Bluegardenczy Danløn, a Danish entrepreneur must provide their company bank account number and registration number. When adding new employees to the system, the entrepreneur must provide their personal information, employment contract, CPR number, bank account and sort code, and tax card type. If an agreement hasn't been made with the employee, the employer must inform the accountant of the employment terms to calculate vacation correctly. Finally, the entrepreneur should send their accountant information on wages and salaries for each employee, including hours worked, pay period, gross wages, and any fringe benefits.