Denmark Professional Employer Organisation (PEO)

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Denmark Professional Employer Organisation (PEO)

Denmark is one of Europe’s strongest economies and most attractive locations for companies launching global expansion. Planning your international growth alongside a Professional Employer Organisation (PEO) such as Bradford Jacobs means you can count on customised solutions to locating staff who can be operating in Denmark within a matter of days.

Denmark is open to foreign investment and international companies and is ranked as the 39th strongest economy in the world based on GDP, is a member of the European Union (EU) though not the Economic and Monetary Union (EMU) and retains the krone as its currency rather than the Euro. The country rely heavily on foreign trade and world-leading sectors of industry include maritime shipping, pharmaceuticals and renewable energy. 

The economy was predicted to grow from $330 billion in 2019 to $348 billion in 2020.Companies considering opening a subsidiary or branch in Denmark should consider the most viable and effective alternative, by partnering with Bradford Jacobs. Our PEO international recruitment specialists will recruit the staff to fill every role. Then, our Employer of Record (EOR) specialists in Denmark enable clients to operate staff in-country with no worries over human resources, tax, payroll, employment legislation and registering employees with the relevant authorities –always staying up to speed with changes in laws and regulations.

As part of our service, we can administer the returns and associated payments for wage tax and social security contributions directly from our payroll system to the relevant authorities, relieving you of the following responsibilities:

  • Registering employees with the Danish tax authorities. The Danish Business Authority (DBA) forwards the relevant information to the Danish Customs and Tax Administration (SKAT) who are responsible for collecting taxes and Value Added Tax (VAT)
  • If necessary we register the parent company with the DBA to obtain a Central Company Registration Number (CVR), which is required to communicate with public authorities
  • If employees are migrated to Denmark we register them for a Tax ID and health insurance card so they can access public health services
  • All employers must take out mandatory industrial insurance. This should be added to the salary as the employer’s contribution along with the withheld Danish Labour Market Supplementary Fund (ATP) contribution
  • Creating contracts. All Danish employers are required by law to provide a contract if the employee has worked for at least one month and more than eight hours a week. The contract covers specific conditions of the employment and can be requested in language of choice, though the employer is not required to do so by law
  • Applying special tax status for expatriates if applicable
  • Establishing payroll, calculating salary payments, withholding tax, allowances and social insurance deductions
  • Filing annual tax returns for the employees. Personal tax includes national and city tax and optional church tax. The lowest tax rate is approximately 36%
  • Producing year-end accounts and statements, though audits are necessarily only under certain circumstances

The following step-by-step guide highlights how Bradford Jacobs can simplify creating the blueprint for your company’s expansion into the Danish market without having to open a legal entity in the country.

  • Your company is ready to deploy an existing employee to Denmark or recruit in-country through our international PEO recruitment network
  • Once the candidate is selected, we step in as EOR through our legal Danish agency, guaranteeing compliance with employment contracts, payroll, human resources, tax and social insurance regulations under both Danish law and European Union directives
  • Where necessary, Bradford Jacobs deal with obtaining visas and work permits
  • The parent company has day-to-day operational control of their employee, while Bradford Jacobs manage all work-related registration formalities and our consultants ensure employees are aware of holidays, benefits and entitlement policies
  • Employees send us completed time sheets and approved expenses claims and we invoice you, the employer. When paid, we deduct all contributions to the Danish tax and social insurance authorities and transfer the balance into the employee’s bank account

Within a few days your company has a fully operational international presence in a new market, perfectly placed to explore further expansion, without risking the expense, uncertainty or hassle of setting up your own subsidiary or branch office.

Using Denmark Professional Employer Organisation Provider Features and Benefits

Bradford Jacobs’ global Employer of Record (EOR) and Professional Employer Organisation (PEO) employment solutions enable employers to have a workforce operating legally, officially – and promptly – in Denmark. This is the efficient, fast and stress-free alternative to the time-consuming, hazardous and expensive exercise of establishing a legal entity in the country, whether as a subsidiary or branch.

You, the company, select the ideal employee from the candidates we source, then Bradford Jacobs handle the rest. Our services include:

  • Specific support for all nationalities working for your company in Denmark
  • Ongoing business and human resources support from our local specialists
  • Information and advice regarding any treaties on expatriate tax, double taxation, social security agreements and reclaimable expenses
  • If employees use their own accountant, fees are covered to the limit of Bradford Jacobs’ accountancy fees
  • Five million Euros cover for employer’s business liabilities
  • Around the clock contact with Bradford Jacobs’ consultants ensures the employee can focus on their work

Denmark PEO Features and Benefits for Employer

  • Rapid solution to onboarding employees for your international expansion into Denmark
  • We register with DBA, The Danish Business Authority, and with the Danish Customs and Tax Administration (SKAT), who are responsible for collecting taxes and Value Added Tax (VAT)
  • If necessary, we register the parent company with the DBA to obtain a Central Company Registration Number (CVR), which is required to communicate with public authorities
  • Bradford Jacobs ensure that you, the employer, complies with contract registration laws. All Danish employers are required by law to provide a contract if the employee has worked for at least one month and more than eight hours a week. The contract covers specific conditions of employment and can be requested in language of choice
  • Full transparency gives complete control over operating budgets as all costs are detailed at the outset
  • Time-efficient – minimal paperwork removes red tape involved in setting up a subsidiary or branch in Denmark
  • Expert guidance with employment and compliance issues
  • Reduced accountancy and legal costs
  • Bradford Jacobs’ services include all statutory professional insurances

Denmark EOR / PEO Features and Benefits for the Employee

  • Worry-free compliant local contract. All Danish employers must provide a contract if employee has worked at least one month or eight hours a week
  • On-time and 100% accurate salary payment
  • One-to-one professional human resources advice on employment-related questions
  • Updates on tax and compliance regulations

Denmark PEO Contract of Employment Benefits

  • Employee receives comprehensive written employment contract. Employers are not legally required to provide contracts in any language but Danish, though usually comply with a translation if requested. An offer letter and contract should always state salary and any benefit amounts in Danish Krone (DKK)
  • Prior to contract offer, Bradford Jacobs provide breakdown of all clauses that must be included in the contract with an overview of all Danish protocols and provisions
  • Bradford Jacobs’ advisers will recommend to employers where provisions can be enhanced so they can offer a competitive salary and additional benefits, such as health insurance and housing allowances
  • Salary, commission, bonuses and benefits are all contractually agreed with the employer and included in the contract

Denmark PEO Human Resources (HR) Services

  • On-call service to assist with routine HR concerns such as absence management and processing expenses
  • Guidance with Danish compliance rules, such as any legal obligation to record hours worked and overtime provisions
  • Prompt 24/7 support with disciplinary or grievance issues needing urgent response
  • Regular updates and on-call advice to ensure ongoing compliance with changes in Danish employment laws
  • Liaison with employees to ensure they are up-to-date with companies’ internal policies and handbooks
  • Accident insurance as and if required by Danish law is provided as standard, covering occupational and commuting accidents and occupational illness

Denmark PEO Payroll Services

  • Fully-compliant international PEO and EOR funding process, ensuring employees and competent authorities are paid electronically on time into nominated bank accounts. The “Request to open a corporate account” form can be obtained from any large Danish bank and must be returned with references or recommendations from bank in home country
  • On-time paperwork for all statutory tax filing and social insurance submissions and end-of-year reporting to avoid financial penalties from the Danish tax and social insurance authorities. VAT must be paid monthly, quarterly or bi-annually depending on size of the company
  • Liability payments made in accordance with Danish requirements to the respective competent authorities well in advance of deadlines
  • Payments made to employees in Krone (DKK) on fixed weekly/bi-weekly/monthly basis as required
  • Compensation, benefits, termination and severance issues are also covered by Bradford Jacobs’ EOR and PEO services, if the employment relationship ends

Denmark PEO Visas, Permits and Migration

  • Bradford Jacobs ensure the process of navigating through the procedure to obtain work permits or visas for migrating employees to Denmark are handled as smoothly as possible, but different rules apply depending on a number of factors
  • Non-EU nationals must acquire a residence and work permit prior to arrival in Denmark
  • EU nationals may enter and work in Denmark without permits for up to three months, but must complete a registration certificate before the three months expires if they plan to stay longer
  • Citizens of the other Nordic countries (Norway, Sweden, Finland, Iceland, Greenland, Faroe Islands) can enter and work in Denmark without requiring permits
  • Foreign employees offered highly-paid jobs have easy access to the Danish market but must have a minimum salary of DKK 408,000 (Krone) or €54,000

Denmark Hiring and Recruiting

Bradford Jacobs’ expertise as a Professional Employer Organisation (PEO) will source top-level staff to fill key roles for your expansion into Denmark, either locally or from around the world. This is backed up by Employer of Record (EOR) outsourcing services to handle all aspects of staff administration and compliance with Denmark’s employment, tax and registration laws as well as European Union directives. We provide the solutions to foreign expansion without companies risking the expense and uncertainty of establishing a subsidiary. This is the efficient, cost-effective and sensible alternative to operating in Denmark.