Pay in the case of compulsory liquidation – State guarantee, etc.
Concerns wage demands in connection with bankruptcy when the income is earned before the bankruptcy. Also applies in connection with the payment of guarantee amounts from the Wage Guarantee Fund.
Brief information concerning pay in the event of compulsory liquidation – State guarantee, etc.
Specify:
- guarantee amounts under the Act relating to the State Guarantee for Wage Claims in the event of Bankruptcy etc. to cover salary earned prior to the bankruptcy
- pay from bankruptcy estates
- dividends from salary claims earned before the bankruptcy
Salary in the event of bankruptcy also covers salary and holiday pay earned during the period of notice, which is considered to be a priority claim on the assets of the company in liquidation.
If an employee is ordered to work their period of notice after the initiation of liquidation proceedings and the pay is deemed to constitute a preferential claim, you must specify the salary as ordinary salary (fixed salary, hourly wage, etc.) and not as “pay in the event of compulsory liquidation or State guarantee”.
The information you must provide
| Amount | NOK x |
| Type of salary or benefit | Depends on the type of benefit (see below) |
| Subject to withholding tax | Yes |
| Basis for employer's national insurance contributions | No |
| Tax and contribution rules | If relevant |
Additional information: |
|
| Description | Pay in the event of compulsory liquidation or State guarantee |
| For hourly wage and overtime remuneration | No. of hours |
Amount
Specify the gross amount.
Type of salary or benefit
Specify “cash benefit” and one of the following incomes:
- Fixed salary
- Hourly wage
- Fixed supplement
- Overtime payment
- Holiday pay
- Other
- Deduction from salary for holiday (amount must always be negative)
Subject to withholding tax
The benefit must always be specified as subject to withholding tax.
Exceptions:
- You don't have to make withholding tax deductions if the amount to be deducted is less than the minimum thresholds for withholding tax.
- You do not have to deduct withholding tax from guarantee amounts of up to NOK 4,000 under Section 1 of the Wage Guarantee Act and Tax Payment Regulations § 5-4-4. If salary, etc. exceeds the threshold amount, the withholding tax deduction must be calculated on the entire amount. However, no withholding tax must be deducted from holiday pay in such cases. At the request of the taxpayer, withholding tax must also be deducted from benefits below the threshold amount.
Basis for employer's national insurance contributions
You do not calculate employer’s national insurance contributions on the benefit.
Tax and contribution rules
If the income recipient fulfils the conditions, you must use the following tax and contribution rule:
This tax and contribution rule concerns:
- income recipients who are covered by the Svalbard Tax Act.
If the income recipient fulfils the relevant conditions, you must specify “Svalbard” for salary and other benefits.
You must also specify "Svalbard" for the associated withholding tax.
See detailed information on withholding tax in the a-melding
Remember also to specify the correct deduction descriptions for Svalbard regarding trade union fees, premium for pension scheme, National Insurance premiums and education and development fund premiums and portacabin rent.
This tax and contribution rule concerns:
- seafarers who are entitled to a special deduction (seafarer's allowance) from their salary and other benefits,
- when it is earned through work on-board a vessel in service.
If the income recipient fulfils the relevant conditions, you must specify “special allowance for seafarers” for salary and other benefits.
See also the detailed information concerning the special allowance for seafarers
Additional information
- Description
Specify “pay in the event of compulsory liquidation or State guarantee”. - For hourly wage and overtime remuneration
If you report hourly wage or overtime remuneration, you must also specify the number of hours.
Example
Kari's employer went bankrupt on 15 April and the NOK 20,000 she earned in April before the start of bankruptcy proceedings is covered, but she does not actually receive it.
She also earned NOK 70,000 in holiday pay through until the start of bankruptcy proceedings. The bankruptcy estate pays the fixed salary. The following information must be reported in the a-melding.
| Fixed salary: | |
| Amount | 20,000 |
| Type of salary or benefit | Cash benefit, fixed salary |
| Subject to withholding tax | Yes |
| Basis for employer's national insurance contributions | No |
| Additional information | Pay in the event of compulsory liquidation or State guarantee |
| Holiday pay: | |
| Amount | 70,000 |
| Type of salary or benefit | Cash benefit, holiday pay |
| Subject to withholding tax | Yes |
| Basis for employer's national insurance contributions | No |
| Additional information | Pay in the event of compulsory liquidation or State guarantee |
Example
Kari is ordered to work for the bankruptcy estate after the start of bankruptcy proceedings. She works through to the end of April and receives a fixed salary. The following information must be reported in the a-melding.
| Amount | 20,000 |
| Type of salary or benefit | Cash benefit, fixed salary |
| Subject to withholding tax | Yes |
| Basis for employer's national insurance contributions | Yes |
Earnings period (voluntary)
You can specify the earnings period for all types of salary and other benefits in the a-melding. Both the start date and the end date of the earnings period must fall within the same reporting month.
See also the explanatory information concerning the earnings period
When you must submit reports
Specify the benefit in the calendar month in which you paid the amount.
In the case of a bankruptcy estate, the estate administrator’s reporting obligation is limited to payments made after the start of bankruptcy proceedings. The reporting obligation also covers salaries and dividends from salary claims earned before the bankruptcy arose and holiday pay during the period of notice in cases where this is considered to be a priority claim on the assets of the estate. For payments made prior to the start of bankruptcy proceedings, bankruptcy debtors are responsible for reporting information via the a-melding.
Correcting errors
| MAGNET_EDAG-114 Invalid value |
| MAGNET_EDAG-114B Invalid value for this calendar month |
| MAGNET_EDAG-200 This income has been reported with incorrect information and is invalid |
| MAGNET_EDAG-230B Invalid value |
| MAGNET_EDAG-243 Information on earnings period is invalid |
| MAGNET_EDAG-298 This income has been reported with incorrect information and is invalid |
What do we use the information for
NAV uses information concerning salary and other benefits to calculate unemployment benefits and to check benefits such as sickness benefit, parental benefit, disability benefit and advance child maintenance payments.
The Norwegian Tax Administration uses information concerning salary and other benefits to assess income. The amount is aggregated with other benefits and transferred to the tax return.
Statistics Norway (SSB) uses the information for statistical purposes.
Applicable regulations
These regulations are only available in Norwegian.
