Guide to Set Up Payroll for Remote Workers in Norway

Due to the prevalent health hazards caused by the pandemic, businesses and organisations have shifted to working remotely from their homes so that crowding in the office or on-site can be avoided. Hence, the need to update payroll for remote workers in Norway has raised. Given that this issue has taken place, the companies are forced to set up their payroll across different locations and even internationally in some cases.

Here is a detailed guide on how you could set up your payroll for an efficient employee payment system for the remotest of workers your organisation has.

Payroll remote worker norway

Classify the Type of Workforce

A company usually has two types of workers. Once classified, you can move with your payroll system.

  • Employees- An employee is a direct server, either full-time or part-time, for an employer, a company, or a business. Employees need to be paid under a lot of regulations defined by the government. Hence, keep in mind to abide by all these regulations while setting up the payroll system for your remote workforce.
  • Independent Workers- A lot of companies require independent workers, commonly known as freelancers. Since they are self-employed, they do not fall under the government’s regulations, and the company is not liable to pay their taxes.

Hence, identify the type of worker and set up the payroll for remote workers in Norway accordingly. 

Register the Employee Locations

While working remotely, the employees of a company can be spread across a massive pool of areas. They can be within the country as well as a non-resident. Again, classification is essential.

  • Resident- If the employee is a resident of the company’s country, it will be easier to undertake the payroll process.
  • Non-resident- Payroll for non-resident employees would naturally be a different process. Depending upon the state or country they live in, taxes will be deducted, bank fees and transfer fees must be paid along with other funds to the state or national government. Payroll will take some time. Due to this reason, many companies opt for hiring independent workers from the global scale to stay away from these taxes and charges.
Payroll remote worker norway

Choose a Suitable Payroll Method

Once the points mentioned above are determined, the company can now move on to choosing a suitable payroll method that would follow the employment laws and do the payments in time and correctly.

  • Service Provider- A company with a large-scale employee base scattered remotely often chooses to pay their employees via a payroll service provider. In that case, choosing the right service provider is vital to avoid mistakes that can be costly. Many companies select cloud-based payroll service providers that do payments on time, track all the details and do much more in one go.
  • Manual- This is a process where the company or business employs its own team of accountants to manage the payroll system and does not outsource it to a third-party service provider. In this case, the accountants need to be aware of the local tax system and fund requirements since these laws are complex. This system is not helpful in the long run since it is not cost-efficient.

Different methods of payroll for remote workers in Norway are coming up to serve the remote employees. At the same time, the companies select to adopt the hybrid model of working due to the hazardous health issues in the world.

The system of payroll for remote workers in Norway is through a payroll service provider. For more information, contact Swapp Agency.