How salary and payroll taxes are calculated

Salary calculation is not only the amount payable to the employee, but also the employer's obligations to the budget, which must be calculated and paid on time.

What the payroll fund consists of

The payroll fund includes salary, allowances, bonuses and compensation — and this is the base from which the employer's taxes and mandatory contributions are calculated.

Which payments fall on the employer

In addition to deductions from the employee's own salary, the employer pays separate contributions, the amount of which depends on the current rates and the employee category.

Common calculation mistakes

• Incorrect accounting of sick leave and vacation pay when calculating average earnings
• Mistakes in calculating part-time employees or those with several jobs
• Late filing of payroll fund reports

Conclusion

Mistakes in payroll calculation usually surface during an audit and cost more than preventing them — it makes sense to set up regular reconciliation of calculations even before reports are filed.