After you have calculated the payroll withholding tax, you must reduce the gross salary by the withholding tax and pay the net salary to the employee. You must do this by no later than the date on which the employee becomes entitled to receive their salary, e.g. on the agreed pay day.
When an employee receives payments in kind, you must deduct payroll withholding tax insofar as the cash benefits permit. You must notify the tax office immediately if the salary payment is not sufficient to deduct payroll withholding tax for payments in kind.
As an employer with employees, you are obliged to have a separate bank account called a “tax deduction account”. This tax deduction account must only be used for deposits of payroll withholding tax and any garnishments at the instance of the tax collector.
By no later than the first working day after pay day, you must deposit the payroll withholding tax in the tax deduction account. As an alternative to ongoing deposits, you can keep the balance in the tax deduction account sufficiently high to ensure that it covers the ongoing deduction liability, e.g. by paying in regular instalments.
For employers which are entitled to carry on financing activity under the Financing Activity Act, such as banks, a guarantee may be provided for the amount.
The tax deduction belongs to the tax authorities. Without the consent of the tax collector, you must only use the funds in the tax deduction account to make transfers to the tax collector or transfer the funds to another tax deduction account with another bank.