The employer may use the conversion table from net salary to gross salary when an employee is temporarily liable to pay taxes to Norway and has an employment agreement by which variable net salary is paid for an indefinite period. It cannot be used when the employee is on the PAYE (Pay As You Earn) scheme.
The employer must keep records of:
- How long the employee has been employed
- How much net salary has been paid to him each month
- How much is calculated in gross salary
- How much is calculated as tax deduction
When the first salary payment takes place, the employer should select:
- The correct type of table
- 1 month as the duration of the employee's stay
- Enter net salary
The corresponding gross salary amount will then be shown, along with the amount of tax which must be paid in.
When the second salary payment takes place, the employer should use the table as follows:
- Use the same type of table as before
- Select 2 months as the duration of the employee's stay
- Enter net salary for the previous month and this month
The gross salary for both months will be shown, along with the sum of tax deducted for both months. The employer subtracts gross salary from month 1 and does the same with deducted tax. The employer should continue in this way until the employment period ends or the year ends, depending on which is first.