Media type · Tax and contributions withheld from salary and paid to the authorities.
Payroll tax and withholding
Deductions withheld by the employer from salary and paid to the authorities.
Key facts
| What it is | Tax and contributions withheld from salary and paid to the authorities. |
|---|---|
| Who sets or charges it | The destination sets the rules; the employer withholds and remits. |
| Check before accepting | The withholding basis, the effective rate and whether year-end filing is required. |
Withholding is not the final liability
Payroll withholds an amount based on the tax code and information registered with the authority. The final liability can differ after allowances, other income or a change of residence are taken into account. A year-end return may add a refund or a payment on top of the monthly withholding.
Keep every payslip and annual statement. If you move during the year, two countries may withhold tax on parts of the same income. The reconciliation depends on the residence rules and any treaty, and it may take months to settle.
Frequently asked questions
Does the employer pay tax for me?
The employer withholds and remits it, but the tax is your liability. Errors or under-withholding are usually corrected through your return.
Are social contributions part of payroll tax?
They are usually withheld through payroll alongside income tax, but they are separate contributions with their own bases and caps.