Your obligations as an employee to deduct payroll withholding tax can be summarised under six points:
- you must retrieve the employee’s tax deduction card electronically from the Norwegian Tax Administration
- you must calculate the basis for the calculation
- you must apply the tax deduction card to the calculation basis in order to find the correct payroll withholding tax to be deducted
- you must ensure that tax deduction card information is updated for each payroll run
- in connection with each payroll run, you must deduct payroll withholding tax from the employee's gross salary, deposit the payroll withholding tax in a tax deduction account and then transfer the amount to the tax collector
- you must document the payroll withholding tax to the employee
What do I do if an employee wants to deduct more tax than is shown on the tax deduction card?
You do not need a new tax deduction card from the tax office. The employee can contact the employer/payroll office, or alternatively NAV/your pension provider, and ask for more tax to be deducted.
The Tax Payment Act (Chapter 5 Section 5-5 second paragraph) stipulates that employees must deduct more tax if the employees so requests.
Useful tools for calculating the correct amount of payroll withholding tax and paying tax