activpayroll newsletter

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December 14NEWS update for activpayroll clients
Global Payroll, Expatriate Tax & HR news that you care about
activpayroll win International Payroll Award
Standing, from the left: Wayne Doran – Time Target, Sian Odgers -
activpayroll, Paul Buddin – McLaren Automotive Ltd, Federica Monacelli -
activpayroll, Russell Stewart – Simpson Booth Ltd, Sitting from the left:
Paul Frew – Maersk, Graham McKechnie – activpayroll
In this issue:
 activpayroll win International Payroll
Award 2014
 Canada Office Launch
 activpayroll continue to support AFC
 CIPP Training Academy
 USA Partner Visit
 Global Insights
 Have You Met: Simon Wright
 Singapore Success
 Christmas is Coming
 Doing Business in Canada
 Movember
 A Word From Graham: Norway Update
 activpayroll HQ Refurbishment
activpayroll are delighted to announce
our most recent award success - winner
of the International Payroll Award at the
prestigious Payroll World Awards 2014!
The Payroll World Awards recognise
industry leaders, chosen by their peers
for their professionalism, pioneering
efforts and commitment to improving the
payroll profession.
The International Payroll Award 2014
was awarded to activpayroll in
recognition of our leading innovative
singular Global Payroll solution
supporting over 800 clients in more than
70 countries around the world, all of
which without a sales team.
Over the last decade, we have set up one of the
largest and most experienced international
payroll and expatriate tax teams in the world. As
a result, we are extremely committed to
continually developing individuals’ skill-set
through career progression opportunities and
our CIPP payroll academy launching in January
2015 (page 4) is part of our most recent efforts.
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Canada Office Launch
Alison Sellar, CEO of activpayroll, said: "I am thrilled and honoured
to be the winner of the International Payroll Award for the third time
in four years at the Payroll World Awards. To win it once is an
achievement, to win it three times is remarkable in our industry. It's
such a fantastic recognition for everyone in the team and I would
also like to thank each and every single one of our clients and
partners for making this happen.”
“The hard work, energy and creativity applied by our people to
deliver the most outstanding payroll service in the world to our
clients are impressive. Our
recipe for success has
been our commitment to
focus on our vision and
core values that internally
drive continual
improvement and
innovation. This relentless focus has resulted in us
designing and providing the most comprehensive singular
Global Payroll solution in the world. The solution today
supports some of the biggest brands around the globe.
We're completely focused on the future and this Award is
the best encouragement to keep challenging ourselves”.
activpayroll are proud to announce the opening of our
new Ontario-based Canadian office, ultimate
demonstration of our phenomenal global expansion.
Since launching in 2001, activpayroll has acquired a
number of Canadian clients, however the launch of our
new office in Ontario will enable us to continue to
expand our reach across North American markets and
formalise the partnership with Canadian partner Pivotal.
Our office launch took place this month as renowned
GlobalScot Trade Mission Ambassador and Chief
Executive Office of activpayroll, Alison Sellar led the
SDI (Scottish Development International) Trade Mission
to Toronto.
CEO Alison Sellar said: “Having a Canadian office has always been part of our vision and being in
Toronto this week for the trade mission seemed like the best time to officially launch.
Expanding into Canada has come as a result of us delivering global payroll solutions to a number of
Canadian clients and having, just recently, successfully won another large listed Canadian
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activpayroll continue to proudly support AFC
organisation: a mining company
with Canada HQ.
It’s been a really productive week
here in Toronto, leading the
Canada Cross-Sector Trade
Mission, catching up with current
and potential clients, and
increasing awareness of the
activpayroll solutions”.
Mike Salveta, Regional Director –
Canada adds: “We are delighted
to be formalising the partnership
with activpayroll and launching the
Canada office. It’s something
we’ve been working on for a while
and we’re really happy to see it
happen.”
The Canada office launch follows office openings this year in Paris and Stavanger. This is part of a
larger global expansion plan which will see activpayroll offices opening in the Middle East, China,
Germany, Hong Kong, Spain, Italy and Denmark.
This month, our Business Services Director Sian Odgers and PR & Marketing Executive Federica
Monacelli enjoyed an afternoon at Pittodrie for the unveiling of the new Aberdeen Football Club tunnel
which activpayroll have sponsored. activpayroll were delighted to catch up with the AFC team, tour
the grounds and do an interview for one of the next Matchday programmes. They also got a chance to
meet AFC Captain Russell Anderson and got some photos taken wearing the famous red kit. Make
sure you all look out for the new sponsored tunnel on the televised games!
Captain Russell Anderson pictured above in between Sian and Federica! Pictured in the right photo is Ally Proctor – AFC Head
of Community, Sian Odgers – Business Services Director, Russell Anderson – AFC Captain, Federica Monacelli – PR &
Marketing Executive, George Yule – AFC Vice President.
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Scotland’s first CIPP In-house Payroll Training Academy
activpayroll are delighted to announce the launch of our payroll
academy; in collaboration with the Chartered Institute of Payroll
Professionals (CIPP). The CIPP is a 29 year-old membership
organisation for payroll professionals in the UK, offering training
and professional payroll and pension qualifications. Our payroll
academy will launch in January 2015, and we are currently looking
for applicants to join the first CIPP in-house payroll academy in
Scotland.
Over the last decade, we’ve built up one of the largest and most
experienced international payroll and expatriate tax teams in the
world and are extremely committed to continually developing individuals’ skill-set through career
progression opportunities, hence the CIPP payroll academy is an ultimate demonstration of this.
The successful candidates will have the opportunity to learn the skills of a payroll professional and
gain invaluable CIPP qualifications whilst working.
Alison Sellar, CEO said: "I am really enthusiastic about our up-and-coming academy and working with
CIPP is always great pleasure.”
“I believe the in-house payroll academy represents a fantastic opportunity for anyone wishing to enter
the payroll industry and join our award-winning team”.
Lindsey Melvin, CEO of the CIPP, added: “We’re really pleased to be working with activpayroll on this
initiative because not only is it attracting individuals to the profession but also offering training which is
so important to anyone’s professional development. It gives candidates not only the opportunity of a
job but also a prosperous career.”
The payroll academy is already underway, with Selina receiving her kick-off training from Allan Isdale,
CIPP Associate Director for Technology Enhanced Learning Development. Allan went through the
syllabus and how the course is monitored with Selina, making sure she is fully equipped to deliver
once the Academy is launched.
It was great to have Allan in our offices and we look
forward to seeing him again in January.
Allan Isdale, CIPP Associate Director for Technology
Enhanced Learning Development, said: “I’m really
looking forward to working more closely with the team at
activpayroll to ensure that your Academy is a success
and will be one of the professions success stories for
2015 and beyond.”
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USA Partner Visit
Global Insights
We recently welcomed our USA partners from Payroll Network
Inc. Charles Wolf, Regional Director - USA and George
Sarbacher, Executive Vice President and CFO, to our Aberdeen
HQ office.
Charles and George spent a day touring the Aberdeen office,
meeting the team and key operational personnel, but most
importantly, designing and further developing the future
partnership strategy.
It was extremely beneficial for the team to spend time
together, helping strengthen our knowledge of business in the
USA and giving them the opportunity to understand a little
more about our business and people.
Of course, Charles and George also found time for a quick
round of golf at Trump International Golf Links before heading
to the Ryder Cup at Gleneagles, Perthshire.
The activpayroll team look forward to Payroll Network’s next
visit and hope Charles and George enjoyed their stay, despite
the Ryder Cup outcome!
Since the launch of Global Insights in July 2014, we have had some fantastic feedback on the
performance of the service. With comments from clients describing it as ‘a gold mine for payroll
administrators’ and ‘well presented, relevant and easy to use’, activpayroll are thrilled with the
success of the service so far.
Our online library now contains guidance on how to do business in over 50 countries across the globe
and is continually updated in line with country-specific changes. Our Global Insights documents
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Have You Met : Simon Wright
contain advice on the current economic climate and offer sections on payroll, tax, social security,
employment law, visas, work permits and much more.
Clients of activpayroll are encouraged to make use of our free of charge offering; a valuable tool for
businesses looking to expand into global markets.
Alison Sellar said: “the response we have received from clients has been great; those who have made
use of our online suite of Global Insights recognise what a valuable resource it is”.
1. What is your
name?
Simon Wright
2. What is your
job title?
Audit and
Compliance
Manager
3. What do you do?
My main role is to ensure that our clients are
all compliant with UK tax legislation. Whenever
we get questions about UK tax legislation then
I’m the one to respond. I cover some additional
Norwegian work as well, but it’s mainly the UK
that I’m in charge of. I also do UK audit work;
either in house, for existing clients or as one
offs.
4. What key skills do you bring to
activpayroll?
I worked for HMRC for a long time; I was in the
civil service for 22 years. For the last ten years
at HMRC I was in their payroll compliance
team working for their Large Business Service.
This involved carrying out audits on the largest
companies in the UK from an HMRC point of
view. Companies with anything more than a
thousand employees or with multiple locations
would fall into our department. I was able to
bring that experience to activpayroll; it’s a very
similar job, but from the other side. Previously,
I would be looking for where clients were non-
compliant and effectively what I do now is to
make sure clients are compliant. When I joined
activpayroll I knew exactly what HMRC was
looking for at that time, over the years it’s
changed a bit, but I still know enough people
that work within HMRC that I still know what
their main focus areas are. I also came to
activpayroll with knowledge of dispensation
agreements and PAYE Settlement
Agreements which has become part of my role
here.
5. What gives you the most satisfaction
about your job?
I like the interaction with my payroll colleagues
and with my clients. It gives you job
satisfaction knowing that you’re doing the job
you’re meant to do – keeping clients compliant
and making sure they’re not falling foul of their
HMRC legislation.
6. How did you get into the Payroll industry
and why?
Well as I said I worked for HMRC, and when
activpayroll were advertising for an Audit and
Compliance Manager there were a lot of
changes happening within the section that I
worked in. HMRC were carrying out fewer
audits so the job I was previously doing was
becoming a lot different to what it had
previously been and I was looking for a
change.
7. What has been the most challenging
project you’ve worked on at activpayroll?
Why?
There are challenges in keeping up with
legislative changes introduced by HMRC,
including RTI and pension auto enrolment.
There is also quite a lot going on around
payrolling of benefits so keeping on top of
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Singapore Success
these changes keeps me busy. Probably the
biggest challenge for me has been learning
about Norwegian tax. When I first started at
activpayroll, I exclusively did UK tax, but when
the previous Norwegian Tax specialist left, it
became my responsibility to take over. As well
as Norwegian tax, it’s challenging learning
about international tax more generally; having
clients in over 70 countries, it’s beneficial for
me to be aware of international tax differences
as well as within the UK.
8. What do you consider to be your
greatest achievement outside of
activpayroll?
It would have to be something to do with how
much food I can eat… I’ve eaten a fair few big
meals in my time. The last one was a
miserable failure though – full breakfast with
ten eggs, ten pieces of bacon etc to be eaten
in 20 minutes (Picture right). I didn’t manage it
this time, but maybe back in the day I would
have!
(It’s not unheard of in the office for Simon to
eat a dozen donuts).
9. Do you have any hobbies/ What do you
like to do in your free time?
The main thing I enjoy is spending time with
my family, whether that’s playing Teenage
Mutant Ninja Turtles with my grandson or
walking the dog! I also play a fair bit of poker
and like reading.
10. Who is your professional role model
and why?
It would have to be our Global Tax Director
Graham McKechnie – he’s great at what he
does, very knowledgeable and is very
professional. He is also very good at making
complicated tax issues easy to understand. He
has pretty poor taste in football teams, but
we’ll ignore that.
11. If you could have dinner with anyone,
who would it be and why?
I’ve been watching Guy Martin’s “Speed”
series recently, and I think he would be great
to have dinner with. Either that or Frank
Sinatra, I’m a big fan of his and you’d get
dinner and entertainment all in one!
It’s been a busy couple of months in the Singapore office! Just a month behind Edinburgh, the office
celebrated its first Birthday and received a visit from CEO, Alison Sellar and Global Operations
Director, Euan Sellar. Alison was very impressed by the quality and calibre of our people and
delighted that the team is already expanding. We are currently recruiting for additional roles and have
even leased a bigger office space at the same address!
Many new contracts have been signed and the team are receiving excellent client feedback. It has
been a successful 1st year all round for our APAC HQ and Steven has been great at leading the team
and our regional operations, resulting in business doubling - great work!
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Christmas is Coming
As the activpayroll team have been getting into the festive spirit, we thought we would ask them some
questions about what Christmas means to them:
“Having my family round, especially my son who will be home on leave from the Army where he is
based in Germany. And hopefully some snow!” – Sally McGee
“On Christmas Day it will be exactly one month until I land in Australia for a 3 week holiday –
HOHOHO!” – Nicola Campbell
“It will be my last Christmas as Miss Reidford, and I’m looking forward to spending Christmas dinner
with both mine and Chris’s family.” – Stacey Reidford
“I’m most looking forward to having time off to enjoy Christmas this year. Having worked in retail I’m
used to having only Christmas Day off. “– Erin Smith
“The thing that I am most looking forward to at Christmas time is time with my family; I love the look
on my two boys’ faces opening up their presents from Santa. And eating lots of chocolate - it has to
be done!!” – Tracy Sharp
“Being back home in Naples (Italy) with my family and friends. Also, this will be the first time in years
that I don’t have any uni reports or exams to prepare during the holidays so I’m looking forward to
some proper relaxation.” – Federica Monacelli
“The food, spending time with family, the food, time off work and the food.” – Simon Wright
“I’m cooking for everyone this year so the plan is to be stressed!” – Erin Smith
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“My whole family usually go for a walk round the forest in Banchory-Devenick then have Mulled wine
at a view point which looks over the whole city” – Liam Urquhurt
“For me, as I’m from a Muslim back ground, usually we wouldn’t celebrate Christmas, even though we
still feel the spirit of this day. For the last few years we’ve arranged Christmas dinner and had my
neighbour Sandra Sommerville over to join us or we have been over at hers. We exchange gifts
between family, friends and neighbours. My daughter is always really excited for Christmas and looks
forward to the gifts she will receive from Santa! I let her celebrate the event with her friends and join in
all of the related activities – sharing cards and gifts, and she’s already started singing Christmas
songs! We are happy to enjoy this celebration with our friends as we respect all other beliefs – we
don’t do much on the day, but we do our best to share with our friends and neighbours every year.”
– Lubna Elyan
“Spend the day with my family and visit my Granddad in the nursing home and then all my friends get
together at one house at night” – Callum McAndrew
“Spend a traditional Xmas day with my girls and family” – Selina Bubb
“Walk the dog (she doesn’t care that it is Christmas), then we will go and
watch our grandson opening his presents. We will go and see my sister
and her family and then this year we are having a big family lunch at my
wife’s sister’s house. My brother in law has terminal cancer, and as this
will almost certainly be his last Christmas, the plan was to get their whole
family together.” – Simon Wright
“Open presents; have a huge Christmas lunch at home, have a huge Christmas dinner with family and
then sit down at night to enjoy the afore mentioned presents” – Jason McKnight
“A big family dinner at mum’s. As this is the first year with ‘in-laws’, it
will also involve a breakfast with them first!” – Lisa MacLean
“A Trip to York the day before, and then I’ll be going to see my fiancé’s
folks. Then wander up to my parents on Xmas morning (we are only a
street away) – Snowball fights have been known to happen meaning
this 5 minute walk can take up to an hour.“ – James Wallis
“We have a Christmas Eve Pamper box; my mum used to do it for my sister
and I when we were younger and I now do it for my son. It’s a gift
box/bag, that we open on Christmas Eve in the evening, it usually has a DVD,
new PJS, cosy slipper socks, popcorn or sweets, then something little such as
bath products / teddy / hot water bottle/ make up/ nail varnish/ facemask (as
we got older a miniature Baileys/ wine / candle etc.) “– Shenagh Brown
“Every year I dress my parents’ dog up as a reindeer” – Callum McAndrew
“Not really but we do like to play board and card games. We do have a game
called Pirate Flux where you get extra points for talking like a pirate. We have
discovered the drunker you are the better this game is so we take it to the pub
(next door) fairly often. “– James Wallis
“We always get new PJs and wear them all day” – Selina Bubb
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Doing Business in : Canada
“Family! It’s the one time of the year where you can all get together and catch up. For us it is a must
as we have family all over the UK. This year will be the year where we have the most in one place.
People are travelling to York from Scotland, Devon, Newcastle, Kent and Jersey so it will be a full
house.” – James Wallis
“Chris, my family and my dog Poppy” – Stacey Reidford
“Family” – Jason McKnight
“Time with my parents & brother Giorgio.” – Federica Monacelli
“Friends and family” – Callum McAndrew
“Seeing our grandson open his presents, and the big Christmas dinner” – Simon Wright
Canada is a prosperous country with high living standards. During the second half of the 20th century
Canada developed into mainly an industrial economy due to the significant growth of its
Manufacturing, Mining and Service Sectors. Canada has a highly skilled work force and vast natural
resources. Its main trading partner is the United States of America, which is responsible for three
quarters of exports.
Did You Know: The population of Canada is 34.88 Million (World Bank, United States Census
Bureau)
Investing In Canada
The Canadian Government welcomes inward investment in Canada, with attractive incentives for
foreign investors. The political stability and highly skilled workforce provide many investment
opportunities for firms considering expanding their operations into Canada.
“Mince pies!” – Erin Smith
“Baileys!” – Adanna Iwuagwu
“Turkey and stuffing” – Sally
McGee
“Games and Bucks Fizz” –
Selina Bubb
“A Christmas stocking!!!” –
Lisa MacLean
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Registrations and Establishing an Entity
Any company wishing to operate in Canada must decide whether operations will occur solely within a
single province or throughout Canada. If business will be conducted all over the country the
corporation must register both federally and within the individual provinces that the business will be
conducted within. Please note that it is recommended for a lawyer or accountant to evaluate all
considerations.
All businesses operating are required to register with the Canada Revenue Agency to receive a
business number. This number will allow the business to pay and claim Sales Tax, Income Taxes and
Payroll Taxes. In addition to registering a business number, some entities may be required to register
for Workman Compensation, which could be a requirement by province. Please refer to the provincial
government requirements for specific details.
Banking
It is not mandatory to pay the authorities and employees using an in-country bank account, although
Canadian authorities will only accept payments in CAD$. As per the payment options, both
employees and authorities can be paid using a number a ways, however best practice would be
Direct Deposit (via EFT) or Cheque. Wire transfers are rare as employees are often charged by bank
additional fees.
Most bank transfers in Canada are completed within 2 days while for the 6 largest banks (which make
up 90% of Canadian banking system) turnaround time is 24 hours; if an international transfer is being
made timing depends on how the funds are transferred, i.e. a Wire requires a branch to post the
payment to account so we would suggest 3-4 days to allow for additional processing time. Generally
banks are open to the public from 9.00 am to 5.00 pm.
Working Week
The Working Week in Canada is Monday to
Friday. Generally there are 40 working hours
in a week with 8 hours per working day.
How to say . . . in French
Hello Bonjour
Good Morning Bonjour
Good Evening Bonsoir
Do You Speak English? Parlez-Vous
Anglais
Good Bye Au Revoir
Thank You Merci
See You Later à plus tard
Tax & Social Security
The Tax Year runs from 1
st
January to 31
st
December. There is no requirement for a third party to be
licensed in order to make any tax and/or social security filings on the behalf of a client. Although
a license is not required, a Power of Attorney for the business is required.
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Monthly Income Tax contributions are paid on the 15th of the following month. The penalty for failing
to distribute T4 slips to a recipient is $25.00 per day for each such failure with a minimum penalty
of $100.00 and a maximum of $2,500.00.
Payroll
It is legally acceptable in Canada to provide employees with online pay slips.
Did You Know: Queen Elizabeth II is the Canadian Head of State.
Employment Law
Holiday Accrual / Calculations
Holidays vary by province, but are paid typically by an average of the working days.
Maternity Leave
Pregnancy leave in Canada is seventeen (17) weeks. This leave must be taken by the birth mother.
Parental Leave
Parental leave in Canada is up to thirty seven (37) weeks. This leave can be split between the parents
so they can both have adequate time off. This is an employee specific decision.
Did You Know: Canada’s name comes from a misunderstanding between Jacques Cartier and some
Iroquois youth who were pointing out a village (for which they used the word “Kanata”).They were
actually trying to identify the small area which is present day Quebec City, but Cartier used the
similar-sounding word “Canada” to refer to the whole area.
Employee Benefits
Expenses
Typical benefits provided in country include the following:
 Medical Plan
 Dental Plan
 Disability Coverage
Employers generally contribute a portion of the
premiums (at least 50%).
Did You Know: Canada’s national symbol is the
beaver.
Visas & work permits
Depending upon the foreign worker’s country of citizenship, a Temporary Resident Visa may also be
required in order to enter Canada.
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Canada Work Permit rests upon a written job offer from an employer.
Once you have received such an offer, in most cases it is then subject to confirmation by Human
Resources and Skills Development Canada (HRSDC) who will assess the likely impact of employing a
foreign national in the position in question, to ensure that the employment is genuine and that it will
not impact negatively on the domestic labour market.
With the exception of people who have been granted protected person status and of those who are
applying for refugee status, all applicants must meet the following requirements:
 Have a valid Passport or other Travel Document issued by their country of residence
 Be in good health (a medical exam may be required)
 Provide proof that they have sufficient funds to support their stay in Canada
 Demonstrate that their stay in Canada is temporary
 Not have a criminal record, nor be considered a security risk
Other employer specific criteria may apply.
In most cases, foreign workers must have obtained a labour market opinion from their potential
employer before applying for a Work Permit.
Did You Know: In 1962, Pincher Creek, Alberta experienced the fastest, biggest temperature change
ever recorded in Canada as a result of a Chinook (a warm, dry wind that comes off the Rocky
Mountains) The temperature rose from -19C to 22C in just one hour!
Cultural Considerations & Tips
In Business
 Business meetings in Canada tend to be more formal than in the US with a more restrained
approach.
 Keeping with the relaxed yet reserved attitude of the country, it is important to observe some
basic rules when meeting someone for the first time:
- address the person by Mr or Mrs plus last name and in some cases by their title (e.g. Dr)
until the person asks to be addressed differently
- arrive on time (if possible 5 to 10 minutes earlier) as punctuality is highly valued while
lateness is looked down upon, unless due to valid extenuating circumstances;
- speak directly and in an assertive manner to avoid misunderstandings, while ensuring not
to appear aggressive.
 Canada has encouraged a multi-ethnic approach to its immigration policies. Cultural diversity
is recognised and respected. It is very likely that you will encounter people from a wide range
of cultural backgrounds.
 In some cases, especially among friends in French-speaking circles, men and women will
often give each other a kiss on each cheek.
 Canadians are direct in their communication style and can usually be taken on face value
without the need to try to decipher coded messages.
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Movember Visit
In General
 Canada is officially a bilingual country and efforts should be made, wherever possible to
recognise the linguistic heritage of the French-speaking minority.
 Canadians are known for travelling and thus are curious about world geography and other
lands. When meeting someone a conversation may also touch on places to visit, be it locally
or overseas. They want to know about other places, including the food, customs and music.
 Topics to be avoided on first contact are money,
salary, religion and politics, especially the
separatist movement. Newcomers to Canada
can use the interlocutor’s cues for approaching
topics or subjects during a first rendezvous.
 Good topics of conversation are: work, studies,
the weather (a good opener), one’s house,
vacations, sports (especially hockey, American
football, baseball, water sports and, increasingly,
soccer/football) and other leisure activities.
During Alison’s APAC trip she had the pleasure of visiting
and presenting our Global Payroll and Mobility solutions to
the Australian HQ of the men’s health foundation:
Movember. The Movember Foundation challenges men to
grow moustaches during Movember (formerly known as
November), to spark conversation and raise vital funds for
its men’s health programs. To date, 4 million moustaches
have been grown worldwide, but they won't stop growing as
long as serious men’s health issues exist.
The Movember community has raised $580 million to date
and funded over 800 programs in 21 countries. This work is
saving and improving the lives of men affected by prostate
cancer, testicular cancer and mental health problems.
Alison was delighted to hear more about the Movember movement
and was thoroughly impressed by the offices and people involved
with the foundation.
Movember may be over for the year but you can still do your part
and get involved:
http://au.movember.com/?home
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A word from Graham : Norwegian Updates
“As we approach the end of another calendar year, the
focus for activpayroll’s Global Mobility Team turns very
much to two topics – the fast approaching UK self-
assessment tax return filing deadline of 31 January 2015
and any forthcoming changes to the income tax or social
security legislation in the 70 plus international jurisdictions
where activpayroll delivers payroll and mobility services.
Unlike the UK, and some other notable exceptions like
Australia and South Africa, the vast majority of jurisdictions
have a traditional calendar year as their fiscal tax
year. Therefore, inevitably any changes made to the
income tax and/or social security rates, rules or regulations
introduced by a jurisdiction’s statutory bodies are effective
from the beginning of the following tax year (1st
January). Accordingly, activpayroll’s Global Mobility and
Global Payroll teams are in regular dialogue with our colleagues in all overseas jurisdictions as we
approach the end of the current tax year and look ahead to the dawn of the coming tax year.
Norway is one such location who have announced some significant changes to their income tax and
social security reporting system with effect from the beginning of the 2015 Norwegian tax year on 1
st
January 2015.
The A-Melding (“A-Message”) system is a new public scheme that changes the way in which
employers, and others with a reporting obligation in Norway, declare employment and the income
received from that employment to NAV (Norwegian Labour and Welfare Administration), Statistics
Norway (SSB) and the Norwegian Tax Administration.
The above information will now be collected in one report, the A-message, and this report must be
submitted electronically by any employer who pays salaries, pension and other remunerations
at least once every month. This system replaces the current bi-monthly reporting system that exists
for employers and the new system is seen as being something akin to HMRC’s Real Time Information
(RTI) reporting system.
The current bi-monthly reporting system does not require the total Norwegian tax calculated to be
broken down by individual; however the A-message system requires taxable earnings and income tax
figures to be reported on a per individual basis which is a considerable shift in process.
The A-Message report has to be submitted at least once a month, and can be submitted via an
approved payroll system or via direct registration in Altinn (Norwegian government online portal). The
A-Message reporting is done in arrears which means that all payroll items processed and paid in one
calendar month are reported in that A-Message report which is due for submission by the 5
th
of the
following month. Accordingly, the first submission under the new system will be due no later than 5
th
February 2015 (in respect of the month of January 2015).
The monthly A-Message report replaces the following forms which, under the current reporting
system, are required to be submitted by any foreign employer with employees working in Norway -
 Certificate of pay and tax deductions/recording sheet/bi-monthly tax report (RF-1015)
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1
 Annual statement of employer’s National Insurance Contributions/cover letter for CPTD/end of
year certificate (RF-1025)
 Employers’ national insurance contributions and advance tax deductions (RF-1037)
In addition, the A-Message report replaces the following forms which currently have to be submitted
by Norwegian employers –
 The NAV state register of Employers and Employees (EE-register)(NAV 25-01.10)
 Pay statistics statement (RA-0500)
Essentially, the current reporting system requires a number of different forms to be completed,
requesting a wide range of information about employees, their employment, tax deductions,
remunerations and salaries and these forms need to be submitted to three different legislative bodies
at different times and in many cases the information requested is duplicated across each form. In
short, the process is not efficient or effective.
Under the new system, the monthly A-Message report will collate all information required for all
legislative bodies and therefore, whilst the regularity of the reporting will be increased, the fact that
only one report requires to be prepared and submitted provides a significant streamlining of the
Norwegian income tax and social security reporting system.
Whilst the above system increases the regularity of the reporting requirements in Norway, the current
bi-monthly remittance process will continue to exist. Therefore the physical payment of the Norwegian
income tax and social security liabilities, calculated and reported in the A-Message report each month
will continue to be work on a bi-monthly cycle. The payment deadlines are 15
th
March, 15
th
May, 15
th
July, 15
th
September, 15
th
November and 15
th
January.
One additional important point to note is that the current RF-1199 reporting requirements remain
unchanged.”
Your activpayroll Global Mobility Team will be in touch with all clients impacted by this and any other
forthcoming legislation changes in the very near future.
If you have any questions regarding this update, please do not hesitate to contact either Graham or
Simon:
graham.mckechnie@activpayroll.com or simon.wright@activpayroll.com
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1
activpayroll HQ Refurbishment
Merry Christmas & Happy New Year !
There have been exciting developments at our activpayroll HQ over the last few weeks as the office
refurbishment has taken place and the teams have moved back in. This involved creating an open-
plan office to ensure a more communicative environment and to make room for our ever expanding
team. The boardroom was also redecorated as part of this process, with company colours featuring
throughout the office now, brightening it up and representing the brand to its fullest.
activpayroll would like to wish our clients, partners and team members across the globe a Merry
Christmas and a Happy New Year! We look forward to continuing to support you throughout 2015 with
our Award winning Payroll, Expatriate Tax and Online HR Tool services.
Thank you for taking the time to read our newsletter, we hope you enjoyed it and will look forward to
the next issue.
If you have any questions regarding the content of this newsletter, please email:info@activpayroll.com
17

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