Corporate presence requirements & payroll set-up
A foreign entity cannot hire employees in Argentina without a local corporate presence.
Employers must pay social security contributions (23% or 27% on top of salaries, depending on the company's activity and revenues). Employees must contribute 17% of their salaries to the social security system (to be withheld by the employer and subject to certain taxable limits). Income tax is also withheld by the employer when paying employees' salaries (maximum rate 35%, subject to a progressive scale).
Collective bargaining agreements for certain activities provide payments to be made by the employer and/or the unionized employees to the relevant unions.
A foreign entity can engage employees in Australia subject to business, corporate and tax considerations and proper payroll registration. Personal income tax must be paid by employees on their assessable income. However, employers are obliged to deduct tax from an employee's remuneration (called Pay as You Go or PAYG tax withholding) and also to pay 9.5% of salary (which will gradually be increased over coming years to 12%) into the employee's superannuation account (a form of pension system).
A foreign entity can engage employees in Austria with proper payroll registrations, subject to business and corporate tax planning considerations. Withholdings for pay-as-you-earn (ie, social insurance [employer and employee portion], Severance Payment Funds [1.53% to the so called BV-Kasse], local taxes) and income tax to be done through payroll.
A foreign employer cannot directly engage employees in Bahrain without being registered under the Commercial Registry in the Ministry of Industry, Commerce and Tourism.
Foreign employers are required to register at the Labor Market Regulatory Authority (LMRA). Following the registration process, work permits will be allocated, whereby the number will depend on the type of activity of the establishment, through the Expats Management System (EMS).
As stipulated in the LMRA Law, establishments are required to pay monthly fees on every expatriate employee working for it.
There has been a move towards requiring payment in local currency into local bank accounts through local payroll, but this is not strictly enforced yet.
A foreign entity can engage employees in Belgium with proper registration as employer, proper payroll registrations and proper registration of the employees. Payment of social charges on remuneration, up to approximately 27% employer portion for white collar employees and up to approximately 13.07% employee portion) and income tax at progressive rates according to the amount of income (up to 53.5% updated from time to time), to be done through payroll.
A foreign entity cannot hire employees in Brazil without a local corporate presence. Employers must pay social security contributions and labor charges on top of compensation, which represent an additional cost of approximately 65% on top of salaries. Employees will have income tax (up to 27.5%) and social security contributions (up to 11% of the compensation, subject to a legal cap) withheld at source from compensation.
A foreign entity can engage employees in Canada, but the entity must have proper corporate and payroll registrations. Business and corporate tax planning considerations are often paramount and consideration should be given to creating a corporate subsidiary in Canada as an alternative to registering a foreign entity.
Payroll registration is done through the Canada Revenue Agency (and, if applicable, through Revenue Quebec) by obtaining a business number. Employers must withhold and remit income tax, as well as various social security programs such as the Canada Pension Plan (or in Quebec, the Quebec Pension Plan) and Employment Insurance. In some cases additional taxes and remittances may apply or be required under worker's compensation legislation and as part of the public health care system (eg, in Ontario, the Employer Health Tax).
A foreign entity seeking to hire an employee in Chile does not need to have a corporate presence in Chile. However, in such case, the company will have to appoint a representative in Chile for the sole purpose of acting on its behalf in case of any review by the authorities of labor and social security compliance, usually a payroll provider.
A foreign entity cannot engage employees in China without setting up a representative office or a subsidiary. Once established, payroll has to be set up. Note that representative offices of foreign companies need to engage an agency to engage its workforce.
In principle, a foreign entity cannot directly engage employees in Colombia without setting up a branch or subsidiary. Proper payroll registrations are required (both employer and employees). Social Security (in respect of health, pension and labor risks – see benefits and pensions), payroll taxes, and union contribution withholdings may apply (if employees are unionized) and withholding tax may apply depending on the employee's income.
Foreign entities can engage employees in the Czech Republic if they have proper registrations with the competent financial authority, social security administration and the health insurance company. The registered entity must pay income tax (15%; deducted from the employee's salary), health insurance (13.5%; 9% is paid by the employer) and social security contributions (31.5%; 25% is paid by the employer). Employers are obliged to maintain a payroll. Independent contractors are responsible for their own taxation.
Foreign companies that are contemplating carrying out business in Denmark, may be set up as limited liability companies (A/S & ApS), branch offices or representation offices. Also, foreign companies may hire individual employees without having a permanent establishment in Denmark. Special payroll and tax schemes may be set up in this regard.
Danish employers are obliged to withhold provisional income tax (so-called A tax) and labor market contributions from the salary paid.
Foreign entities can engage employees in Finland, subject to business and corporate tax planning considerations, as well as compliance with payroll, tax and other requirements.
Proper payroll operations include making income tax, social security and other necessary deductions at source.
A foreign entity can engage employees in France with payroll registrations subject to business and corporate tax planning considerations. Registration as an employer with labor authorities and "Pôle Emploi" via the Declaration Prior to Hiring (DPAE) to be made within 8 days before the effective starting date.
The employee share of social contributions amounts to 25% – 28% of his or her gross monthly compensation.
The employer share amounts to approximately 45% of each employee's gross compensation in companies with fewer than 10 employees, and approximately 50% in companies with 10 employees or more.
A foreign company can engage employees in Germany without local corporate presence, subject to doing business and corporate tax considerations. For employment and payroll purposes, registrations with tax and social security authorities are required.
Employee earnings are subject to withholdings for social security (19.825% employer and employee portion each, up to a ceiling of €6,700 gross per month for the states of the former West Germany and a ceiling of €6,150 for the states of the former East Germany) and wage tax (from 14% to 45%) to be done through payroll.
A foreign entity can engage employees in Hong Kong subject to business, corporate and tax considerations and proper payroll registration.
Payment of Hong Kong tax is the employee's responsibility. Therefore, Hong Kong employers are not required to withhold tax through the payroll system (subject to exceptional circumstance where an employer is required to withhold final payments of an employee who will leave Hong Kong for 1 month or more after termination).
In order to employ employees in Hungary, the employing entity must have an established branch in Hungary. The employment of employees has to be notified to the tax authority and is subject to tax payment obligations (social security tax and vocational training contribution to be paid by the employer: 21% (but subject to review); contribution payable by the employee but deducted by the employer: 18.5%).
A foreign company without local registration cannot directly engage employees in India. Employers can be formed as sole proprietorship, or as a partnership or an incorporated entity. Offshore entities that wish to do business in India either set up subsidiaries or joint venture companies in partnership with other local or offshore entities; or, with the approval of the Reserve Bank of India, set up a liaison office, branch office or project office. Also, proper payroll needs to be set up to make withholdings and deductions.
Both central and state labor laws impose various procedural requirements on employers, such as obtaining registration, maintenance of registers and records (including muster rolls for employees who present themselves for work), display of notices and filing of returns which are to be available for inspection by inspectors/appropriate government authorities. For ease of doing business in India, the Government of India has permitted start-ups to submit self-certified returns and self-declaration as evidence of compliance with the provisions of the Employees State Insurance Act, 1958 (ESI Act) and Employees Provident Fund and Miscellaneous Provisions Act, 1952 (EPF Act). Certain state governments have also come up with self-certification schemes and simplified requirements for maintenance of records and registers required under various labor laws. The government has also taken measures to implement combined registers and provide e-filing of returns to ensure compliance with certain labor legislation.
A foreign company cannot directly engage employees in Indonesia without having a presence there, for example a corporate or tax presence. A "tax presence" requires there to be a permanent establishment (as defined in the relevant legislation) in Indonesia, and will commonly take the form of a representative office. The most common structure is to establish a local Indonesian subsidiary in the form of a limited liability company.
An employer must set up payroll in Indonesia and make withholdings for income taxes and social charges under the National Social Security (Sistem Jaminan Sosial Nasional or SJSN) program.
A foreign entity can engage in Ireland with proper payroll registrations, subject to business and corporate tax planning considerations. Withholdings for pay-as-you-earn income tax (up to 40%), Universal Social Charge (up to 8%) and Pay Related Social Insurance (up to 10.75% for the employer and 4% for the employee) to be done through payroll. Self-employed independent contractors are paid gross and are responsible for their own taxation.
Generally, registration of the employer, either an Israeli subsidiary or a foreign company (branch), is required, in order to set up a bank account for payroll and to open tax and national insurance files for mandatory withholding requirements.
A foreign entity can engage employees in Italy with proper payroll registrations, subject to business and corporate tax planning considerations. Withholdings for social contributions (up to approximately 30% employer portion and up to approximately 10% employee portion) and income tax (up to approximately 43%) to be done through payroll. The employer must give notice to the labor authorities that employment has commenced at least 1 day before the commencement of the relationship.
Foreign entities without a local corporate presence in Japan are generally unable to make proper payroll withholdings. Instead, a local corporate presence is generally required to engage employees in Japan.
Employers are required to withhold national income taxes from employees' salary each month and make certain social insurance contributions.
An incorporated/registered entity can engage in business, subject to proper registration as provided under the relevant laws applicable to the business model. The entity must also register with the Kenya Revenue Authority (KRA) and obtain a tax Personal Identification Number (PIN) which is a mandatory requirement for most transactions including opening a bank account and entering a leasing agreement.
The entity will also be required to register for the following mandatory employer obligations:
- National Social Security Fund (NSSF)
- National Hospital Insurance Fund (NHIF)
- Pay As You Earn (PAYE) Employer Obligation and
- National Industrial Training Levy Contributor (NITA)
- National Housing Development Fund (NHDF). This is expected to come into effect on January 1, 2019
See "Benefits and pension" chapter for more details.
A foreign entity cannot directly engage employees in Kuwait. It would have to set up its own legal entity in Kuwait by partnering up with a Kuwaiti partner (individual or company) which must own at least 51% shares. Once such an entity has been established it can employ foreign nationals, who need both a residence permit and a work permit, and local nationals, who require a work permit only. The only way around this would be to have a secondment type arrangement, whereby the foreign company appoints a local entity as its commercial agent and the local entity then sponsors the local or foreign national employees of the foreign principal for their work permit and the foreign or local national then carries out the operations of the foreign principal in Kuwait.
A foreign entity can engage employees in Luxembourg with proper payroll registrations, subject to several corporate and tax considerations.
Income tax and the employee's portion of the social security contributions are withheld from the remuneration paid out by the employer. The global rate of the social security contributions varies from 24.32% to 27.20% depending on the absentee rate within the company. The employee's portion varies from 12.20% to 12.45%.
A foreign company can engage employees in Malaysia without local corporate presence subject to administrative, accounting, and tax considerations. The Companies Act also requires foreign corporations to be registered as a foreign company under the Companies Act before "carrying on a business in Malaysia," but the engagement of employees in Malaysia does not necessarily mean a foreign company will be regarded as carrying on a business in Malaysia. As an alternative to incorporating a Malaysian company, a foreign company can also opt to register a branch office or representative office.
There are several arrangements commonly used by foreign companies which engage employees in Malaysia in relation to payroll:
- Running the payroll directly from the foreign entity/location
- Running the payroll through an entity set up in Malaysia
- Outsourcing the payroll to a third party service provider in Malaysia
The most suitable option for a business will depend on the nature of the business, activities carried out by the employees, and accounting and tax considerations.
Employees are responsible for the declaration and payment of income tax, but local employers will be required to make deductions from salary for income tax and employer contributions to the Employees' Provident Fund (EPF), Social Security Organization (SOCSO) and Employment Insurance Scheme (EIS).
A foreign entity cannot directly engage employees in Mexico without setting up a branch or subsidiary. Proper payroll registrations are required. Social Security, tax, and union contributions withholdings may apply, depending on the employee's category and income.
A foreign entity cannot hire employees in Morocco unless it has a branch or a subsidiary registered in Morocco. Withholding for pay-as-you-earn (eg social security fund — up to approximately 25% employer contribution and up to approximately 7% employee contribution) and income tax (up to 38%) to be done through payroll.
A foreign entity cannot engage directly employees in Mozambique. It is necessary to establish a legal presence by means of incorporation of a company (subsidiary) or registration of a foreign commercial representation (branch).
Labor and tax obligations must be complied with by all registered entities. Employers (and employees) must register for social security and pay monthly contributions of 7%, of which 3% is deducted from the employee's salary and 4% is borne by the employer. Foreign employees must be registered for social security by the employer; however if these employees prove to the employer and social security that they are covered by the social security system of another country, they can be exempt from this contribution in Mozambique. Personal income tax is applicable to all employees and is withheld through payroll and paid over to the revenue authorities. The rates are established on a steeply graduated basis depending on the amount of the income (ie, salary), with a maximum effective rate of 32%.
A foreign investor investing in Myanmar may either incorporate a subsidiary or register an overseas corporation of a company incorporated outside Myanmar. A Myanmar subsidiary may be wholly foreign owned or may be a joint venture with a Myanmar company. Foreign employers usually cannot directly engage employees in Myanmar without local corporate presence.
Employers must pay social insurance at the rate of 3%, of which 2% is to be paid into the Health and Social Care fund and 1% into the Employment Injury Benefit fund. Personal income tax must be paid by employees on their assessable income. The employer is responsible for calculating each employee's personal income tax liability, withholding it from the employee's pay check and remitting this amount to the tax authorities on the employee's behalf.
Foreign entities can directly engage employees in the Netherlands, subject to doing business and tax considerations. Registration with the Dutch tax authorities as an employer (to make mandatory payroll deductions) is required.
A foreign company employing staff in New Zealand is required to register with the Inland Revenue Department (IRD) as an employer and set up an IRD number, except in a limited range of exceptions.
Employment income is subject to tax at source in that the employer must withhold the tax and return this to the IRD under the ''pay-as-you-earn" (PAYE) regime.
Foreign entities not registered in Nigeria cannot carry on business or exercise the powers of a registered company. The powers of a registered company include the employment of staff.
Payroll deductions from employees' salary in Nigeria are:
- 8% of an employee's monthly salary as pension
- Personal income tax (pay-as-you-earn)
- 2.5% of the monthly salary of an employee with a basic minimum salary of NGN3,000.00 per annum to the Federal Mortgage Bank of Nigeria
Any entity conducting business activity in Norway has both a duty and a right to be registered in the Norwegian Register of Business Enterprises. Following its registration, the entity will be provided with a Norwegian company registration number which among other things is necessary in order to fulfill certain statutory obligations, for example, the payment of tax deductions and employer's contributions.
All employers pay statutory social security contributions to the National Insurance scheme. The common rate is 14.1%. Norwegian employers are obliged to withhold income taxes and pay the employee's tax to the taxation authorities.
There are 3 main legal structures available to companies that wish to establish a presence in Oman − a sole proprietorship, a corporate entity or through a commercial agent. It is not possible to employ staff in Oman without an established entity.
A foreign company cannot directly engage employees in the Philippines, unless it establishes a subsidiary or branch in the Philippines. Corporate employers are required to be registered with the Securities and Exchange Commission for corporations and partnerships, the Department of Trade and Industry for single proprietorships, and with the Philippine Social Security System (SSS) (Republic Act No. 8282, Social Security Act of 1997), PhilHealth (Republic Act 7875 National Health Insurance Act of 1995, as amended by Republic Act 9241), Pag-ibig (Republic Act 9679, Home Development Fund Law of 2009), and the Bureau of Internal Revenue (BIR) for the withholding of income taxes and national insurance contributions.
A foreign entity can engage employees in Poland without having a local corporate presence. Engaging a Polish employee who will perform work in Poland requires registration with the social security authorities. Income of this Polish employee will be subject to Polish income tax and social security contributions. In order to conduct business activities in Poland, a foreign entity may need to establish a local corporate presence (branch or representative office) in Poland, registered in the National Court Register.
A foreign entity can engage employees in Portugal with proper payroll registrations, subject to business, corporate and tax considerations. The employer is responsible for withholding from an employee's pay, and delivering to the tax authority, income tax and contributions to Portuguese Social Security. The level of income tax is defined each year by the government and varies in line with the employee's salary.
A foreign entity cannot directly engage employees in Qatar. It would always need to have at least a subsidiary, branch or trade representative office to engage a local or expatriate employee, because such individuals are required to be registered with the Labor Department at the Ministry of Administrative Development, Labor and Social Affairs (Ministry of Labor).
At present, employees working in Qatar are not subject to income tax, and therefore there are no tax withholding obligations imposed on the employer in the context of an employment arrangement.
There are also no social security requirements, save for in respect of certain companies which are required to contribute to the local General Retirement and Pension Authority on behalf of their local Qatari national employees.
Typically, foreign entities set up a Romanian presence in order to conduct business in Romania, which may engage employees under individual employment agreements, but which are required to have registered with both the fiscal authorities and also the labor authorities which handle all employment and payroll-related registrations.
Although it is not the typical scenario envisaged by the Romanian Labor Code, and it might trigger some practical difficulties (mainly from a payroll and tax perspective), there is no express legal provision prohibiting foreign companies with no Romanian presence from executing individual employment agreements directly with Romanian individuals. Thus, a foreign entity can engage staff in Romania, subject to business, corporate and tax considerations.
A foreign entity cannot directly engage employees in Russia, and can only operate in Russia after corporate registration. Personal income tax to be withheld through payroll.
Only Saudi registered entities may hire employees in the Kingdom of Saudi Arabia (Saudi Arabia or KSA). Non-GCC employees will need to have a sponsor for immigration purposes, and only a Saudi registered entity may sponsor non-GCC employees.
An employer must set up local payroll in Saudi Arabia.
A foreign company generally cannot carry on business in Singapore without registering a subsidiary, branch or representative office. "Carrying on business," as defined under Singapore's Companies Act (Cap. 50), includes the administration, management or otherwise dealing with property situated in Singapore as agent, legal personal representative, or a trustee, whether by employees or agents or otherwise; and does not exclude activities carried on without a view to any profit. There are some exceptions to this. For example, purely holding director/shareholder meetings, effecting sales through an independent contractor, investing in funds or holding property, or if the foreign company carries on such other activity as the Minister may prescribe, do not amount to "carrying on business."
Payroll should be set up to comply with the Employment Act (Cap. 91) (EA), Central Provident Fund (under the Central Provident Fund Act (Cap. 36)) and tax obligations and required payroll records. Employers also have income tax withholding obligations with respect to foreign employees.
A foreign company can engage employees in Slovakia without a local corporate presence. However, registrations with tax, social security and health insurance authorities are required for payroll purposes.
Employee earnings are subject to withholdings for
- Tax purposes (19%-25%)
- Contributions to social insurance (9.4% by the employee - maximum of EUR 627.73/month; 25.2% by the employer - maximum of EUR 1,629.42/month plus the amount of accident insurance which amounts to 0.8% from the actual salary of the employee)
- Health insurance (4% - 2% by the employee; 10% - 5% by the employer). The smaller percentages apply in the case of a disabled employee
A foreign company must register as an "external company" with the Companies and Intellectual Property Commission before it can enter into employment contracts in South Africa, and is required to pay corporate income tax. Companies (including external companies) are obliged to register and deduct tax from an employee's salary, and, in addition, have reporting duties to the South African Revenue Services. The maximum personal tax rate is currently 45%.
Employers are required to contribute to prescribed employee benefit funds and make contributions to an unemployment benefit fund. Employee contributions to the unemployment benefit fund are deducted and paid on their behalf by the employer.
Foreign companies may directly engage employees in Korea; however, because of potentially negative tax implications, it is uncommon for foreign companies to do so. There are four ways for foreign nationals to engage in business activities in Korea:
- Establishing a local corporation
- Opening a private business
- Opening a branch
- Opening a liaison office
Payroll withholdings are required.
A foreign entity can engage employees in Spain with proper payroll registrations, subject to business, corporate and tax considerations. Withholdings for income tax and social security are to be done through payroll.
A foreign company can engage employees in Sweden with proper payroll registrations, subject to business, corporate and tax considerations. Employers are obliged to pay social security charges on top of gross salary and most benefits. The social security charges amount to approximately 31% to be borne by the employer. The Swedish personal tax system operates with a progressive rate varying from approximately 28% to 57%.
The employer shall deduct from the gross salary and deliver each employee's personal tax to the Swedish Tax Authority.
A foreign entity can generally engage employees in Switzerland, subject to business and corporate tax planning considerations, and provided the employee can validly work in Switzerland.
Social charges vary according to canton and the employer's chosen pension fund scheme. Employer's contributions have to be paid in addition to the gross salary, at approx. 12-20% of the gross salary. Employee's contributions have to be deducted from the employee's gross salary, at approx. 10%-17% of the gross salary. The employer has to deduct each employee's tax at the source, where applicable.
Foreign companies cannot directly engage employees in Taiwan, but can set up branches, subsidiaries and representative offices, all subject to different registration procedures.
Withholdings for taxes, labor insurance, pension, and health insurance.
A foreign entity can engage employees in Thailand subject to certain business and tax considerations and proper payroll registration through a local entity acting on behalf of the foreign entity.
The employer must withhold tax at source, file a withholding tax return (Form PND 1, 2 or 3 as the case may be) and remit the amount of tax withheld to the District Revenue Office.
A foreign company without local corporate registration cannot directly engage employees in Turkey. When a foreign entity engages in commercial activities in Turkey, these activities should be performed through a branch office or a company. The employees should be registered under the payroll of the branch office or the company. If a foreign entity will only engage in market research in Turkey and not in any commercial activity, the activities can be performed through a liaison office. The employees should be registered under the payroll of the liaison office.
All employers should register the employees with the Social Security Institution as of their first day of employment and make the statutory contributions.
A foreign entity must have a local corporate presence in Uganda before engaging employees. The entity will be required to register for tax and social security where it employs 5 or more employees. Up to 4 employees may be engaged without social security registration. There is, however, an option of voluntary registration. The employees would still be required to register for tax. Employee earnings are subject to pay-as-you-earn tax of up to 30% of the earnings and social security contributions of 15%, 10% being the employer's contribution and 5% being the employee's contribution.
A foreign entity cannot engage employees in Ukraine without a local corporate presence. Furthermore, the engagement of employees in Ukraine without a local corporate presence may give rise to a permanent establishment risk.
United Arab Emirates
A foreign entity cannot directly engage employees in the UAE. It needs to have at least a branch or representative office to engage any employees, including local nationals. This is because all employees need a work permit (or employment ID card in the free zones) in order to work in the UAE (which requires a local sponsor). The only other way around this would be to have a secondment arrangement, whereby a local entity sponsors the employee for their work permit, but the individual is then seconded out to the foreign entity or provide services under a services agreement. This structure may not be legal under relevant immigration and licensing laws.
A foreign entity can engage in the UK with proper payroll registrations, subject to business and corporate tax planning considerations. Withholdings for pay-as-you-earn (eg, social charges — up to 13.8% employer portion and 12% employee portion up to a certain threshold and 2% thereafter) and income tax (up to 45%) to be done through payroll. Self-employed independent contractors are paid gross and are responsible for their own taxation.
A foreign entity can engage employees to do business in the US subject to certain business and tax considerations and registration as an entity qualified to do business in any state where it has employees and/or is engaged in business. All US employers are required to obtain a federal Employer Identification Number (EIN), to pay applicable payroll taxes and withhold certain tax contributions from their employees. Employers may be required to register employees with the specific state in which they are employed (regulations vary from state to state). Certain states (eg, California) have requirements regarding what information must be provided to employees with their pay (including itemized deductions and reports of hours worked, among other information).
A foreign entity can engage employees in Venezuela only if it sets up, at least, a representative office, and obtains payroll and labor registrations. Withholdings for pay-as-you-earn (eg, social charges from 9% to 11%, with a ceiling of 5 minimum wages and income tax of up to 34%) to be done through payroll.
A foreign entity without a license to operate in Vietnam cannot directly hire Vietnamese employees.
Employers must pay social insurance in respect of Vietnamese employees (17.5%, including 3% to the sickness and pregnancy fund, 0.5% to the work-related accidents and occupational disease fund, and 14% to the retirement and survivor ship fund), health insurance (3%) and unemployment insurance (1%), as well as trade-union fees (2%), and withhold the employee portion of the social insurance (8%), health insurance (1.5%), unemployment insurance (1%), trade-union fees (1%, if the employee participates in the grass-roots trade union). The social insurance and health insurance contributions are capped at 20 times the basic monthly salary, which is VND 1,490,000 (approximately US$64), while the unemployment insurance contribution is capped at 20 times the regional minimum salary, which varies depending on the region. Personal income tax must be paid by employees on their assessable income, but the employer must make tax declarations, deduct and remit tax to the state budget, and achieve tax finalization for all kinds of taxable income.
In term of compulsory insurance contributions for foreign employees who have a work permit or practicing license; and an employment contract with an indefinite term or a term of one full year or more, Vietnam-based employers currently pay social insurance premiums of 3.5% together with health insurance contributions of 1%. The foreign employee will pay 8% of their monthly wage to the superannuation and survivorship fund from January 1, 2022.
The employer must consult any organization representing workers at the enterprise (most commonly a trade union) before establishing, amending or supplementing the payroll and sending the payroll information to the district state administrative body for labor. The obligation to send payroll information to the local Department of Labor, Invalids and Social Affairs (DOLISA) arises when the payroll is first drawn up and after each future amendment. An employer with fewer than 10 employees is exempt from submitting wage scales, wage tables and labor norms to the local labor authority at the district level.