Payroll Service in Romania

Payroll Service in Romania

Updated on Friday 08th May 2020

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Payroll in Romania is a vital part of any organization, a critical process which requires a special attention. Remuneration requires accuracy, confidentiality, a rapid processing capacity, up to date knowledge of specific legislation, in short, requires a dedicated staff, trained and continually updated with regulations applied in this domain. Our Romanian accountants are at your disposal with complete support and information regarding the payroll services your company can receive.

Why do I need payroll services in Romania?

By outsourcing the payroll service in Romania, the companies avoid and reduce the costs associated with personnel management (training of employees responsible for salary calculation, updating the necessary software used) and any fiscal controls ended up with sanctions. Because the applicable legislation is rapidly changing, the personnel turnover is also an issue in this sense, particularly for the accounting department or human resources department in Romania. This is a solid reason why your company should work with an external service provider which is able to fulfill successfully any task. Our team of accountants in Romania can offer details in this matter, regardless of the type of business you have in Romania. Also, we can cater to your needs regarding the audits in Romania.
Also, we invite you to watch a comprehensive video about outsourcing the payroll process:

What payroll services can I receive for my company in Romania?

Our  team of advisors can provide your company with full service in the payroll filed in Romania, as follows:
  • a correct analysis of the company’s departments with a functional proposal for structure and optimal and effective sizing;
  • specialized support in recruiting highly qualified personnel, in agreement with the company’s requirements;
  • drafting the employment contracts, the addenda amending forms of employment stipulated by the labor legislation;
  • drawing forms of termination of employment contracts and the revisal submission of employment contracts, addenda and reports termination of employment;
  • filling out forms for medical leave and calculating the amount and also the evidence and calculation of annual leave days;
  • salary calculation, processing, and checking of data entered into the system (preparing payroll and salary slips);
  • calculation of salary taxes required to be paid to the state budget and to the social security budget;
  • compiling the advance payment and liquidation wage and calculation and preparation of accounting notes related to salaries.
Also, our Romanian accountants can offer complete support in tax matters and related aspects, such as:
  • drawing files required by the bank for wages paid by bank transfer;
  • preparing and submitting tax returns on salaries, payment orders for the contributions on salaries;
  • calculation of deductions and garnishments wage, and calculation of the Global Agreement, individually or indirectly, as appropriate;
  • preparation of the 112 Declaration - "Declaration on the obligation to pay social contributions, income tax and nominal record of insured persons" and its reporting to the Ministry of Finance;
  • calculation of the increases and additions to base salary: overtime, bonus weekends, night allowance, heavy duty, awards, bene
We also mention that our consultants can offer legislative support on any payroll issue for your company with establishments in Romania.

What is personnel administration?

All work contracts of your employees can be controlled by our team of advisors as personnel administration. In this area, we can also prepare the suspension or termination decisions, alongside with the work certificates and annexed documents.
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HR analysis for my company in Romania

Payroll services in Romania may comprise at a certain point a complete HR report based on the analysis in this field. This means that our team can analyze the social contributions involved and retained for each type of work contract. Also, any tax error can be corrected at any time. Please bear in mind that supervising the applicable legislation and its changes are vital for a company and its staff.

Employment contract in Romania

We offer you human resources services, including personnel administration by drawing up the employment contracts in Romania and their registration with the competent authorities.
We are prepared to offer solutions and services for any personal issue in Romania and by choosing to work with our team you can avoid the frequent errors that are made ​​in applying the law, which lead to unpleasant consequences such as penalties, financial losses, labor conflicts and even endless lawsuits.
You will find bellow the most important aspects about the employment contract in Romania.
The basic rule governing a contract in Romania is generally the parties’ freedom to negotiate upon it, which means that both parties have the right to establish a term contract drawn up in what manner they want, but in accordance to the legislative provisions.
The minimum clauses that must be included in a labor contract are mentioned in the Labor Code, as provided by The Romanian Ministry of Labor, Family and Social Protection:
  • The full identity of the parties
  • The contract’s subject, with dual purpose - providing employment and salary
  • The occupied position and the encoding provided by the Classification of Occupations in Romania
  • The work place: for example the department / section of the unit headquarters / place of business and conduct of the work: either in a fixed place or in several locations
  • The duration of the contract: open-ended contract or fixed-time
  • The Job responsibilities: as described in the job description required in the contract
  • The specific risks involved
  • The evaluating criteria for the work performed by the employee
  • The working conditions: normal or special
  • The annual leave: a minimum of 20 working days in general, a minimum of 23 days for youth under 18 years old, disabled people and people who work in difficult conditions, hazardous or harmful
  • Remuneration and payment: basic salary and other bonuses, additions or additional benefits in cash or in kind, the date of payment and payment manner: in multiple installments or single tranche
  • The general rights and obligations of the parties
  • The rights and obligations of the parties regarding health and safety at work
  • The probation period which is set  up to 90 calendar days for executive positions and 120 calendar days for management positions, and a maxim of 30 calendar days for employees suffering from disability.
  • The period of notice: resignation and dismissal.
The employment of foreigners in Romania is regulated by the Government Emergency Ordinance no. 56/2007.

Employment of foreigners in Romania

In Romania foreigners can be employed only if they meet the following conditions:
  1. vacancies cannot be filled by Romanian citizens or by citizens of other Member States of the European Union or by citizens of the Members which signed the Agreement on the European Economic Area, as well as permanent residents in Romania;
  2. meet specific training, work experience and licensing required by the employer according to the legislation in force;
  3. prove that they are medically fit in to perform that work and do not have criminal records to be incompatible with the activity carried on or will be developed in Romania;
  4. are included in the annual quota approved by Government Decision;
  5. employers have paid obligations to the state in the last quarter;
  6. the employer must perform the actual work for which he requested the issuance of the work permit;
  7. the employer has not been previously sanctioned for undeclared work and illegal employment .
Exemptions where the cumulative accomplishment is not necessary in Romania are:
  • in the case of foreigners who served as administrator in a company with foreign participation in the situation where one person is appointed to this position;
  • if the foreigner carries as a professional athlete, given the existence of a proof that conduct similar in another country;
  • permit applicants for seasonal workers;
  • for cross-border workers;
  • foreigners holding a residence permit for study purposes.
Any employer who intends to have labor relations with a foreign citizen is obliged to register the individual labor contract concluded on the basis of work authorization.
Foreigners cannot have overlapping functions in Romania, as the work permit gives them the right to perform work under a single contract of employment.
Contact us to benefit from a customized support provided by accountants for your payroll services and personnel administration and for audit services in Romania.