Payroll SaaS
Payroll Software in Denmark
Mercans Payroll Software is a top choice for efficient, compliant, and streamlined payroll management in Denmark. As a leading Payroll Software Denmark solution, it is specifically designed to meet the unique requirements of Danish payroll, ensuring that every aspect of payroll processing is handled with precision and ease.
Mercans Payroll Software is a comprehensive native SaaS solution, offering complete, error-free digitalization of your payroll process. Recognized as premier Denmark Payroll Software, it is the world’s only native global payroll SaaS covering 160 countries, serving as an enterprise-wide solution for businesses of all sizes, from small companies to global conglomerates. Its scalable architecture and seamless module integration provide an intuitive, user-friendly experience that enhances productivity and efficiency.
Trusted the world over
Compliant with Danish Tax Agency (Skattestyrelsen)
Danish Tax Agency (Skattestyrelsen)
Mercans Payroll Software is fully compliant with the Danish Tax Agency (Skattestyrelsen) regulations, ensuring that all payroll processes adhere to the latest tax laws and reporting requirements in Denmark. Our software is designed to seamlessly integrate with Skattestyrelsen’s systems, facilitating accurate and timely tax submissions. This compliance minimizes the risk of errors and penalties, giving businesses confidence that their payroll operations are in strict accordance with Danish tax regulations. By staying updated with changes in tax laws and providing robust reporting tools, Mercans helps businesses maintain smooth and efficient payroll management while meeting all regulatory obligations.
Why Choose Mercans
- Native SaaS and Payroll platform
- Trusted by fortune global 500 and multinationals
- Manage All Employment Types - Employees, Freelancers, Contractors, Expats
- More than 100 inbound and outbound integrations are available today
- Suitable for enterprise businesses
- GDPR certified, SOC 1 & SOC 2 Compliant
- Supports Multiple Currencies
- ISO 20000 & ISO 27001 Certified
- Global presence and multi-country payroll capabilities
- OWASP ASVS 3.0 Compliant
Payroll Software Modules
Mercans Payroll Software provides both managers and employees with a robust and user-friendly online portal designed to optimize HR and payroll functions. Our sophisticated software modules deliver state-of-the-art functionality to ensure efficiency, compliance, and an exceptional user experience. Here’s how our features support your operations:
Manager Self Service
Empowers managers to manage HR tasks such as approvals, performance evaluations, and employee oversight directly through the platform.
Employee Self Service
Allows employees to access their personal information, payroll details, and other HR resources easily, promoting transparency and convenience.
Employee Help Desk
Centralizes support for resolving payroll and HR-related inquiries, ensuring prompt resolution and higher employee satisfaction.
Data Exchange
Streamlines data management with seamless integration capabilities, reducing errors and enhancing connectivity with other systems and platforms.
eDrive and Workflows
Automates HR processes with configurable workflows and document management, boosting efficiency and ensuring compliance.
Time & Attendance
Accurately tracks employee hours, attendance, and productivity, integrating smoothly with payroll calculations.
Leave Management
Manages various types of employee leave, such as vacation and sick leave, with automated approval workflows and precise tracking.
Loans & Expenses
Processes employee loans and expense claims accurately, integrating seamlessly with payroll for efficient financial management
Payroll Features Denmark
Denmark has one of the most sophisticated payroll systems, and at Mercans, we make navigating it seamless with our specialized payroll solutions. Our comprehensive payroll services for Denmark are designed to ensure full compliance with the country’s intricate tax regulations, social security contributions, and labor laws. With automated processes, accurate calculations, and up-to-date compliance, we help businesses streamline payroll management while maintaining transparency and efficiency.
Collective Agreements
Mercans Payroll Software is meticulously designed to manage a wide range of collective agreements and work rules in line with Danish legislation. It offers comprehensive oversight of salary scales based on collective agreements, ranks, seniority, and currency, while also accommodating individual agreements with ease.
Auto Compliance
Our payroll software for Denmark ensures automatic compliance with the latest tax regulations, delivering essential reports to authorities, including tax cards and annual statements.
Salary Calculation
The software efficiently calculates wages for both hourly and salaried employees, handling salary adjustments, holiday pay, pensions, bonuses, and other compensation forms automatically.
Integration
Mercans Payroll Software integrates seamlessly with other relevant systems, such as HR and financial systems, facilitating smooth data exchange between various departments within the company. It also connects with a broad range of accounting systems.
Bank Transfers
Mercans facilitates direct transfers to numerous banking systems, eliminating the need for duplicate data entry. All necessary information, such as account numbers, IBANs, SWIFT codes, and recipient names, is transferred automatically.
Salary Module
The Salary Module encompasses all necessary routines for wage calculation. Daily routines include maintaining financial accounts, accounting, and generating various reports. Monthly tasks involve electronic transfers for eIncome, pensions, compensations, statistics, and money transfers to multiple banking systems. Additionally, it features an extensive list of shutdown routines managed by the end user.
Mercans uses an automated salary calculation engine, which relies on salary templates for each agreement to ensure accurate calculations.
Mercans uses an automated salary calculation engine, which relies on salary templates for each agreement to ensure accurate calculations.
International Salary Routines
Mercans offers a comprehensive suite of international payroll modules and interfaces within its flexible payroll system. It can standardize payroll calculations for any type of agreement and supports a wide range of electronic transfer routines for reporting to authorities. Key functionalities include:
- Reporting to Danish Tax Authority (TAX) / eIncome, including DIS and DAS.
- Reporting and bank transfers to all Danish banks such as PBS, BEC, Sparekasserne, Nordea, Danske Bank, and Jyske Bank.
- Reporting and bank transfers to Danish pension funds including PFA, HTS, and Nordea Life.
- Reporting of holiday cards, tax, and ATP.
Denmark Tax
Mercans Payroll Software for Denmark efficiently manages the deduction of employee taxes, aligning with statutory requirements for employers to withhold tax from employee pay. The calculation of withholding tax is based on the employee’s tax card and their earned taxable income for the pay period. The Danish tax card provides four methods for calculating withholding tax:
- Main (H) Tax Card
- Secondary (B) Tax Card
- Tax Free Income (F) Tax Card
- No Tax Card
Our software can handle taxation for specific pay components such as bonuses and benefits in kind. It ensures that withholding tax is calculated for every employee assignment, even if an employee holds multiple positions within the same legal entity. If an assignment is terminated within the tax year, tax balances are not transferred to a new assignment.
Electronic Payments and Withholding Tax
Mercans Payroll Software supports processing all employee payments electronically through the employer’s bank. The most commonly used method is bank transfer (PBS), and our software generates the required payment file in PBS format. This file is sent to the employer’s bank to facilitate the electronic transfer of funds from the employer’s account to employee accounts.
Uploading the Tax Card
Mercans Payroll Software allows you to request employees’ tax cards for the new tax year by sending a flat file containing employee details to the tax administration. The tax administration returns a file with tax information added to each employee record, which you then upload into the application. If an employee’s tax card changes during the year, you must manually update the new tax card in the system.
Withholding Tax Management
The software enables you to request and upload employee tax information from the tax administration. It extracts the withholding tax details for each employee assignment from the provided tax information.
Electronic Holiday Card Data
The software also processes and reports holiday information, including accruals, entitlements, and payments, for hourly-paid staff and any terminated salaried employees using holiday cards. If you are a member of the Danish Employer Organization (DA) and have a collective agreement that requires using holiday cards, you can generate and submit holiday card data electronically using the XML report format specified by the DA.
Payroll Processing and Analysis
Mercans Payroll Software allows you to run payrolls and perform post-processing on completed payrolls. You can also make adjustments and corrections to payrolls that were not completed successfully.
In Denmark, payroll software utilizes the following concepts to streamline payroll procedures:
Assignment Sets
Use assignment sets when you need to process specific payroll elements separately. Examples include:
- Processing night shifts earlier so employees receive their pay advices before others.
- Running correction payrolls for entries that missed the regular run, such as overtime payments.
- Conducting additional payroll runs for special awards, like long service awards, paid by cheque/check to qualifying employees.
Consolidation Sets
A consolidation set groups multiple payrolls to simplify post-run processing and reporting. It allows you to generate a unified set of reports, costing results, and other outputs for all payrolls within the set. Ensure you assign a consolidation set name to each payroll.
Element and Distribution Sets
During a normal payroll run, all elements are typically included. For specific cases like long service awards, only relevant elements (e.g., bonus and statutory elements) are processed. Calculate gross pay first to determine the amount for transfer into the payroll account, then complete the gross-to-net calculation.
Final Settlement
The software supports processing payrolls for individual employees, including those who are leaving and need immediate payment.
RetroPay Processing
Run the RetroPay process to incorporate backdated payments or deductions into the current payroll. This adjustment is necessary when:
- An employee’s pay award is backdated to a previous period.
- The payroll department makes retrospective corrections for errors from earlier pay periods.
Payroll Dashboard
The Payroll Dashboard provides administrators with a centralized view to monitor various payroll-related processes. It leverages existing payroll functionality to aggregate process data and includes a new feature, Payroll Readiness, which checks prerequisite conditions required for payroll processing as configured by the administrator. From this dashboard, administrators can initiate, retry, or rollback payroll processes.
The Payroll Dashboard offers clear, easily interpretable statistics for quick reference, allowing users to view the status of ongoing payrolls and calculation-related information throughout the pay cycle. This feature reduces the need to run and review multiple processes, enabling users to concentrate on critical areas, take appropriate actions, and identify exceptions during payroll processing.
The dashboard consolidates different components of payroll management onto a single page, helping payroll managers or administrators monitor progress effectively. It facilitates easy and efficient payroll reconciliation, ensuring that the process is handled appropriately by the relevant personnel.
Access to the Payroll Dashboard is available to Payroll Professionals and Payroll Administrators. Payroll Professionals can:
1)
Use the Payroll Dashboard and Configuration functions
2)
Configure processes within the Payroll Dashboard
When a Payroll Professional accesses the dashboard, the Payroll Readiness and Process Monitor tabs are readily available.
Setting Up Electronic File Transfer (EFT)
Denmark payroll software facilitates the submission of employee and payment details to banks via a bank transfer file (PBS).
Running the EFT Process
The Denmark payroll system includes the concurrent program “Danish Payment Output File” to execute the Electronic File Transfer (EFT) process.
In Denmark, pension contributions benefit from favorable tax treatment and are subject to specific rules. These contributions are set up within the Pre-tax or Voluntary Deduction element classifications in Mercans Payroll Software. The software supports the calculation of various pension contributions:
Wage Earners Supplementary Pension Foundation (ATP)
Both employees and employers must contribute to the ATP. The contribution amount depends on the employee’s work hours and the payroll frequency, which can be monthly, bi-weekly, weekly, or hourly.
Labor Market Pension (Collective Agreements)
This type of pension is common in Denmark and is often governed by collective agreements. Contribution rules can vary, but typically, employees contribute a percentage of their net salary, while employers contribute double the employee’s amount.
Capital Pension
Contributions to a Capital Pension are for employees with agreements with banks or insurance companies. There is a legal maximum contribution amount per tax year, which can change annually. Contributions to the Capital Pension reduce taxable income and the income subject to labor market contributions (AMB). Any contributions exceeding the maximum limit are treated as after-tax deductions.
Non-Monetary Benefits and G-Dage Pay in Denmark
In Denmark, non-monetary benefits form part of the total remuneration and can be classified as either taxable or non-taxable.
Benefits in Kind
Taxable benefits in kind are considered taxable income but are not paid as part of the salary. If a benefit in kind is taxable, its value will increase:
- Income subject to Labor Market Contribution (AMB)
- Taxable income
Non-taxable benefits in kind do not require additional calculations but are typically displayed on the payslip along with their equivalent amount.
G-Dage Pay
Under Danish labor agreements and specific collective agreements, G-Dage pay applies if an employee’s contract is suspended. Generally, you provide G-Dage pay for the first two days of the suspension period.
Proration
The payroll platform in Denmark supports proration calculations to adjust earnings proportionately when payroll-relevant data changes during a payroll period. This includes scenarios such as an employee joining or leaving the company or changes in pay grade during a payroll cycle. Proration ensures accurate calculation of earnings reflecting these changes.
Vehicle Repository
The vehicle repository allows you to store details about company and private vehicles used for business purposes. This data is date-tracked, enabling you to record changes over time, such as the vehicle’s status (active or inactive).
Vehicle Allocation
You can allocate vehicles to employees for use in mileage claims or Benefit in Kind processing. The system supports the allocation of both company and private vehicles, facilitating accurate tracking and management of vehicle-related benefits.
In addition to pension contributions, Mercans Payroll Software handles several statutory and involuntary deductions, configured under the Involuntary Deductions or Statutory Deductions element classifications. The software supports the calculation of:
Labor Market Contribution (AMB)
All employees must pay a fixed percentage of their gross salary as AMB. This deduction is calculated before tax and reduces taxable income, which is necessary for the end-of-year tax statement.
Court Orders
Court orders, typically for unpaid debts or fines, are also managed by the software. It supports the rule that only one active court order deduction can be in place at a time and allows for adjustments if a new court order is issued. The system includes a Court Order Deduction element to capture the deduction amount paid to the Central Court Order Administration Organization. After the full amount is deducted, an end date for the court order entry must be specified.
Our payroll software offers an efficient solution for managing various absence types within your enterprise. You can categorize absences into distinct types and categories for better reporting and analysis. An absence category groups related absence types together.
Holiday Pay
The payroll system allows you to record different types of holiday absences and manage holiday pay and public holiday pay. It processes holiday pay based on the earnings and remuneration accrued by employees throughout the holiday accrual year. Predefined lookups, elements, and fast formulas facilitate the calculation of holiday pay. Before processing, you need to define the holiday allowance percentage for each employee.
Setting Up Sick Pay
Mercans payroll software enables you to manage sick pay in compliance with statutory requirements. The sick pay processing functionality allows you to record details about the absence, the work incident causing it, and the related benefits. Follow these steps to process sick pay:
- Sickness Pay Reports: Generate and submit required reports to statutory authorities. These reports can be run from the Submit Request window.
Maternity Absence
Use the Absence window to record maternity leave for employees. You can enter additional details necessary for processing maternity benefits.
Adoption Absence
Record adoption leave using the Absence window. Enter any additional information required for processing adoption benefits.
Parental Absence
The Absence window also allows you to record parental leave. Include any additional information needed to process parental benefits.
Paternity Absence
Record paternity leave through the Absence window and input the necessary details for processing paternity benefits provided to employees.
Pension Contributions Overview
In Denmark, pension contributions benefit from favorable tax treatment and are subject to specific rules. These contributions are set up within the Pre-tax or Voluntary Deduction element classifications in Mercans Payroll Software. The software supports the calculation of various pension contributions:
Benefits in Kind and G-Dage Pay
Benefits in Kind and G-Dage Pay
In addition to pension contributions, Mercans Payroll Software handles several statutory and involuntary deductions, configured under the Involuntary Deductions or Statutory Deductions element classifications. The software supports the calculation of:
Leave and Absence Management
Our payroll software offers an efficient solution for managing various absence types within your enterprise. You can categorize absences into distinct types and categories for better reporting and analysis. An absence category groups related absence types together.
Payroll Implementation
Mercans’ payroll implementation process for Denmark is crafted to ensure a seamless transition to our payroll system. The process is tailored to each client’s specific needs, with timelines and deliverables adjusted based on complexity, data availability, and the number of parallel runs required. Below is an overview of the essential steps involved in our implementation process:
Implementation Planning
- Resource Allocation: Assign project resources and define roles.
- Kick-Off Meeting: Outline objectives, confirm project scope, and develop a detailed implementation plan and calendar.
- Welcome Package: Provide project details and key contacts.
- Progress Monitoring: Schedule weekly update calls or emails to track progress.
- Scope Confirmation: Obtain sign-off on the project scope.
Requirements Gathering
- Workshops: Conduct sessions to understand client needs and document them.
- Business Blueprinting: Detail requirements and perform a gap analysis.
- Customization Needs: Define and document any necessary customizations.
- Requirements Sign-Off: Ensure requirements meet client expectations and obtain approval.
- Comprehensive List: Establish a detailed list of payroll-specific requirements.
System Configuration
- Payroll System Setup: Configure settings to match the payroll system’s version and Danish requirements.
- Wage Type Customization: Adjust the wage type catalog for relevant pay components.
- Data Integration: Configure data dictionaries and interfaces.
- Regulatory Reporting: Adapt reports to comply with Danish regulatory standards.
- Employee Self-Service (ESS) and Manager Self-Service (MSS): Set up these features as required.
Data Migration
- Data Transfer: Migrate employee and payroll master data and verify its accuracy.
- Data Validation: Obtain sign-off on migrated data to ensure correctness.
- Integrity Check: Confirm data integrity and completeness before proceeding.
Test Payroll Run
- Simulation Payrolls: Validate system configurations with simulation payrolls and conduct parallel runs with existing systems.
- Test Run Sign-Off: Confirm accuracy and complete end-to-end testing.
- User Acceptance Testing (UAT): Address any issues found during testing and finalize the UAT process.
Payroll Management Transition & Sign-Off
- Transition Plan: Develop a plan for moving to live payroll and provide user training.
- Post-Go-Live Support: Implement a hypercare plan and an escalation plan for critical issues.
- Fallback Plan: Create a plan for potential disruptions.
- Go-Live Checklist: Complete a checklist to ensure all aspects are ready for final sign-off.
Payroll Integration
Mercans Global distinguishes itself with its expansive reach and robust integration capabilities. Operating across 160 countries, Mercans maintains intricate connections with tax authorities worldwide, ensuring both seamless compliance and operational efficiency.
Recognized Trust Sources
Danish Tax Agency (Skattestyrelsen)
Mercans’ Payroll Software is fully integrated with local tax authorities, including the Skattestyrelsen in Denmark. This integration ensures that all payroll processes align with local regulations, such as mandatory contributions and compliance. Our system provides accurate calculations and facilitates seamless reporting, keeping your business compliant with Saudi Arabian statutory requirements.
These certifications and integrations reflect Mercans’ dedication to high standards of compliance and operational excellence.
Integration with HCM/HRMS/Workforce Management Platforms
Through the Employee Self Service (ESS) feature, employees can manage payroll tasks directly, such as submitting worked hours or declarations. Once approved, these entries are processed instantly within the payroll system, reducing errors and enhancing productivity for both employees and HR administrators.
Custom Integrations
Mercans also offers tailored API integrations for various industries, ensuring that our payroll software meets specific business needs. Our custom integrations include:
Custom API Integrations
Designed for diverse sectors such as hospitality, transport, sports, construction, and healthcare.
Xero Integration
Connects seamlessly with other applications, reducing manual data entry and minimizing errors. Recent enhancements have added new integrations to boost connectivity and efficiency.
Payroll Reports - Standard, Statutory and Year-End Reports
Mercans provides a comprehensive range of Payroll Reports to meet all your reporting needs, including Standard, Statutory, and Year-End Reports. Our Standard Payroll Reports offer detailed insights into employee earnings, deductions, and contributions, helping businesses maintain transparency and accuracy. For compliance, our Statutory Reports ensure you meet local regulatory requirements, including tax filings and social security contributions. At the close of the fiscal year, our Year-End Reports streamline the process with comprehensive summaries of annual payroll activities, ensuring your organization stays compliant with all statutory obligations.
| Statutory Body | Report/Declaration | Filing Frequency | Due dates | Purpose |
|---|---|---|---|---|
| The Danish Customs and Tax Administration (Skatteforvaltningen) | Skattekort bestilling (Tax card subscriptions) | Before each payroll run | Before each payroll run | To subscribe to the employee’s individual tax card. |
| The Danish Customs and Tax Administration (Skatteforvaltningen) | Hentning af skattekort (Tax card collection) | Before each payroll run | Before each payroll run | Tax card are collected from Skat, in order to calculate the correct tax for each employee. Please note that it is mandatory bye law. |
| The Danish Customs and Tax Administration (Skatteforvaltningen) | E-indkomst indberetning (Tax and income reporting) | After each payroll run | Latest at the end of the month. | The E-indkomst report, are used to report the tax collected from the employee, as well as holiday allowance, taxable payments, pension ect. The data are used by a lot of authorities – in order to calculate some public benefits, and to monitor the income and tax |
| Statistics Denmark (DA / DS Statistic) | FravaersStatistik | Annually | 28th of February of the following year | Statistic benchmarks on salaries |
| Statistics Denmark (DA / DS Statistic) | StrukturStatistik | Annually | 28th of February of the following year | Statistic benchmarks on salaries |
| Statistics Denmark (DA / DS Statistic) | KonjunkturStatistik | Quarterly | 1st of March, June, September, December | Statistic benchmarks on salaries |
Benefits of Payroll Software
Mercans offers a robust payroll solution designed to enhance payroll administration and streamline HR processes. Here’s how our software can benefit your organization:
Direct Management
Handle payroll directly through our application, eliminating the need for external processors.
Integrated HR and Leave Management
Manage payroll, HR tasks, and employee leave requests within a single platform, simplifying administration.
Reduced Manual Work
Automate routine tasks to reduce errors and ensure accurate payroll processing.
Customization
Personalize over 150 workflows to align with your specific business needs, boosting efficiency.
Time Savings
Redirect time saved from automation towards more strategic activities.
Effortless Connectivity
Integrate smoothly with leading HR platforms like SAP SuccessFactors, Workday, and Oracle for a cohesive workflow.
Unified Access
Consolidate employee data in one location for easy access, updates, and analysis.
Employee Self-Service
Provide employees with 24/7 access to their personal information.
Mercans' payroll software delivers a comprehensive, secure, and user-friendly solution, streamlining payroll processes and allowing you to focus on your most valuable asset—your people.
24/7 Access
Access payroll data anytime, anywhere.
Transparent Pricing
Enjoy a fixed monthly fee plus a per-employee charge with no hidden costs.
Dedicated Support
Receive expert assistance and advice to maximize the benefits of our software.
Secure Data Management
Ensure data protection and integrity with secure online processing and self-managed backups.
Compliance Assurance
Stay compliant with the latest fiscal and employment regulations through continuous updates.
Mercans' payroll software delivers a comprehensive, secure, and user-friendly solution, streamlining payroll processes and allowing you to focus on your most valuable asset—your people.
Core Key Features
Additional Key Features
Mercans' payroll software delivers a comprehensive, secure, and user-friendly solution, streamlining payroll processes and allowing you to focus on your most valuable asset—your people.
This content was prepared for informational purposes only. As local laws & regulations keep on changing, please consult your tax & legal advisors.
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