Your first employee: what must be in place before the first payslip

The first hire feels like a big step. The paperwork is manageable if you do it in this order.

Before the first working day

• Employment contract. Mandatory for employment longer than a month with more than 3 hours a week on average. It must state salary, working hours, workplace, notice period, holiday and any collective agreement. In writing, and no later than 7 days after the start date for the most important details.
• Occupational injury insurance. Mandatory from the first employee, also part-time. Taken out with an insurer; without it you are personally liable for a workplace accident.
• Registration as an employer at virk.dk, so you can report salaries and A-tax.

At the first salary

• Tax card. Fetched automatically from the Tax Agency by the payroll system using the CPR number; you don't need to ask the employee for anything.
• A-tax and labour market contribution (AM-bidrag) are withheld from the salary and reported to eIndkomst by the 10th of the following month (larger companies have a shorter deadline).
• ATP. A small fixed amount per month, shared between you and the employee; collected automatically after reporting.
• Holiday pay. 12.5 % of the salary for hourly-paid staff, paid into FerieKonto; salaried employees with paid holiday require no payment, but the holiday must be recorded.

What is often forgotten

• Barsel.dk contribution (mandatory, collected automatically).
• Pension, if the collective agreement requires it, or if you have promised it in the contract.
• That the payslip must show gross, deductions and net. A bank transfer is not a payslip.

What LegaSum does

Payroll is being built in LegaSum. Until it is live, the plan says so honestly and points to what must be done where; the contract, the insurance and the employer registration LegaSum can keep track of from day one, so nothing is missing when payroll is to run.