Payroll services

Payroll services

LPG Bulgaria provides payroll services.

For example, LPG assists companies with the drafting of employment contracts and job descriptions. Indeed, prior to any hiring in Bulgaria, a written employment contract must be drawn up and a detailed job description specifying the responsibilities of the employee must accompany this employment contract.

The employment contracts drawn up by the LPG payroll team for its clients are usually permanent term contracts or fixed term contracts and can be either for employees, workers, or even managers. These contracts can be either full-time (40 hours per week), part-time or shift work. Nowadays, LPG’s payroll team also writes permanent or fixed-term contracts for teleworking employees or workers.
Finally, as an alternative to the employment contract, civil collaboration contracts are sometimes put in place relating to specific tasks but without a link of subordination.

When a company wishes to hire employees who do not have Bulgarian nationality or a nationality of a European Union country, they must first apply for and obtain a work permit for their employee. It is also common for Bulgarian companies to wish to employ nationals from Serbia or North Macedonia and a work permit is required. LPG then assists its customers with these procedures. When the employment relationship evolves and new conditions are agreed between the employee and their employer, LPG drafts amendments to employment contracts.

LPG also assists Bulgarian employers with employment declarations to the relevant Bulgarian administrations and, in particular, registers employees with the NAP (Bulgarian tax administration). Bulgarian employers must in fact affiliate their employees with the NAP at the latest within three days following the signing of the employment contract, and in any case before the start of the employee's work.

LPG also carries out, on behalf of its customers, calculations for the payment of social security contributions and taxes which are due. In Bulgaria, as in the majority of European countries, payroll taxes are withheld at source. Social security contributions (health, pension, etc.) must also be declared to the NAP (Bulgarian tax administration), which then checks the calculation of the various contributions and then collects the amounts due before remitting them to the various funds concerned. Salaries must be declared to the NAP no later than the 25th of the month following the month concerned and the amounts due must be paid (by transfer) within the same deadline.

When an employee is unable to work due to illness (or pregnancy), LPG ensures the transmission of documents of temporary incapacity, certificate of illness, pregnancy or childbirth to the National Social Security Institute.

Whenever necessary, LPG Bulgaria teams can represent the companies for which they provide social management to the Labor Inspectorate. This will be the case, for example, during inspectors' checks on working conditions and the payment of remuneration following complaints filed by employees or their representative bodies (unions, etc.).

All aspects related to the end of the employment contract can also be handled by the LPG payroll department, such as calculating severance pay, drafting employment certificates, formatting dismissal letter agreements or negotiating conventional termination of employment contract.

In the event of liquidation of a company, LPG can ensure the transmission of complete personnel files to the national social security organization (NOI) since the law requires that files relating to personnel files are kept for 50 years.