Do you have employees who performed work in Norway in 2018? Don’t forget the annual wage report.
All employers and others who disburse salaries, pensions, and other remunerations must provide a yearly summary of reported information to each employee or income recipient.
The deadline for the annual wage report for work performed in Norway during 2018 is 1 February 2019.
The annual wage report has replaced the old end of year certificate/ Certificate of pay and tax deductions, and from 2015 the new reporting system, a-melding was introduced. Employers and others who pay salaries, etc. must report information to the Tax Administration monthly by submitting the new a-melding.
Employees and other income recipients should nevertheless receive an annual summary of salary, benefits, reimbursements and pensions. Employers must prepare this summary for each individual. Note that the summary only needs to be sent to the employees. It is not necessary to send it to the tax authorities. The deadline for the annual wage report to the employees is 1 February the year following the income year.
The annual wage report should, as a minimum, contain the following information:
- the total of reported income (salaries, payments, remunerations)
- the total basis for holiday pay
- the total of reported tax deduction
- employee number or other information used to identify the income recipient in the payroll systems. D-number can also be included.
- Total days in Norway, or length of the employment period in Norway.
- Specification of whether the income is with or without national insurance
Note that for charitable and non-profit organizations, special rules apply.
The end of year certificate was an official form. The annual wage report, however, has no legal requirements with regards to the lay out. As long as the mandatory information is included, it is up to each employer to decide the format of the summary.
The information on the employees’ pre-filled tax return is based on the information in the annual wage report. It is therefore of great importance that employees contact their employer if they discover any errors in their annual wage report. The errors may then be corrected before the information goes into the tax return.
Also read: Employee rights in Norway
There are a few cases where the employer is exempted from submitting the annual report to the employees. The employer is not required to give a summary if:
- the employee has a yearly pay of less than NOK 1 000
- the payouts concern work connected to the employers' home or holiday home, and amount to no more than NOK 6 000 a year
- There are some exceptions concerning guardians.
- Expense allowances not subject to withholding tax of less than NOK 1 000 does not have to be included in the summary.
For companies doing business in Norway, Magnus Legal can help with Norwegian compliance, formalities and reporting responsibilities.
Originally published January 2018, updated January 2019.