Making payroll often seems an easy task, as it is all about calculating the wages and related contributions of a given number of employees. However, pursuant to the Hungarian legal regulations, this may be more complex if a company employs a pensioner, a person with reduced capacity to work, a person in part time or working in allocated cumulative working hours, a newlywed or a colleague with more children. Above this all, it also matters if an employee was on sick leave, received sickness benefit, was on holiday and if that was a justifiable holiday.

We often experience that reviewing and interpreting legal provisions may be a significant challenge for some companies. Certainly, it is not necessary to outsource the monthly payroll. Frequently the HR or the financial colleagues are supposed to do this task. If a company has a low headcount with employees in similar positions and with similar conditions, it may not as well be necessary. In this case it is enough to have a personnel consultant revise the employment contracts prepared by the lawyer, and then proceed accordingly.

Nevertheless, if the company is growing, and different positions are created with differentiated wages, a wage structure is realised and other benefit options come up – such as bonus and fringe benefits -, it is worth commissioning an expert who takes the responsibility for the wage and contribution payrolls even after years. This is a crucial step as a miscalculated contribution may give rise to company debts that the authority may impose default penalty on.