Managing payroll in Estonia requires precision and compliance with local regulations. At BDO Estonia, we provide a full suite of payroll services, from collecting employee data to processing payslips and managing tax payments. Our experienced team ensures that payroll taxes and labor costs are accurately calculated, minimizing the risk of errors and delays.

We handle over 3,600 payslips monthly, with our largest client employing over 1,000 staff members. Our automated payroll system ensures fast and accurate processing, while our experts stay updated on changes in Estonian tax laws to guarantee compliance.

Our service includes detailed reporting, helping clients analyze labor costs and make informed financial decisions. Whether you operate a small business or a multinational corporation, our solutions are tailored to meet your specific needs.

Leveraging BDO’s global network in over 160 countries, we offer consistent and reliable payroll support worldwide. Our team of over 10 payroll specialists is trained in GDPR compliance and payroll software, ensuring your data is secure and your payroll is processed accurately.

Partner with BDO Estonia for payroll services that combine accuracy, compliance, and personalized support.
 

Service Stage	Description	Specific Activities	Client Benefits
Payroll Preparation	Data collection and processing	Reviewing employment contracts, calculating benefits and bonuses, updating employee data	Accuracy and scalability – capable of handling large volumes (3600+ payslips monthly, largest client with 1000+ employees)
Payroll Processing	Gross and net salary calculation, tax processing	Calculating gross and net pay, tax accounting, working hours and leave tracking	Fast and accurate processing managed by 10+ payroll specialists
Tax Accounting and Compliance	Calculation of taxes and mandatory contributions	Social and income tax calculations, declarations, unemployment insurance payments	Timely and accurate tax payments, supported by BDO’s global network in 160+ countries
Reporting	Labor cost and tax reports	Monthly and annual reports, customized to client needs	Financial clarity and improved budgeting
Client Support and Consulting	Daily support and issue resolution	Personalized approach, handling special cases, ISO27001-certified security, internationally recognized references	Fast and personalized support, strong data security

Our payroll service is designed for flexibility and efficiency to provide you with the best possible solution. While we use various trusted payroll software, we are open to adapting to other systems based on your company's needs. We focus on simplifying technical solutions and improving service efficiency.

Key Payroll Processes:

• Monthly salary and bonus calculations – Including advance payments, overtime, holiday work compensation, on-call duty fees, and other allowances.
• Final settlement calculations – Including vacation compensation, severance pay, and other termination-related payments.
• Tax calculation and reporting – Accurate tax accounting and reporting using the correct payment codes.
• Encrypted payslip delivery – Secure transmission of payslips to employee email addresses or uploading them to the client portal.
• Third-pillar pension contributions – Preparation and execution of net payments to employee-selected funds.
• Vacation pay calculation – Calculation and payment of vacation compensation, both statutory and company-specific, before the vacation period or together with salary.
• Vacation balance tracking – Monitoring of vacation balances and related reporting on a monthly, quarterly, and year-end basis.
• Work schedule verification – Monitoring and verifying work schedules for accuracy.
• Management of electronic sick leave certificates – Handling through the client's eesti.ee portal and communication with the Health Insurance Fund as needed.
• Sick pay calculation – Accurate calculation and processing of employee sick pay.
• Preparation of payroll payment files – Creating and uploading payment files to the client’s bank or providing them for client submission.
• Preparation of accounting entries – Generating journal entries and reports tailored to the client’s needs.
• Payroll-related tax consulting – Providing guidance on payroll taxes and ensuring compliance.
• Coordination with the client’s internal departments – Working with HR and accounting teams to align payroll processes.
• Handling employee inquiries – Responding to employee questions regarding payroll calculations and payments.

Additional Payroll Services:

• Employee registration – Registering employees in the client’s e-Tax Board Employee Register (TöR).
• Preparation and submission of certificates and reports – Preparing and submitting employer reports to relevant authorities (including the Social Insurance Board, Health Insurance Fund, Unemployment Insurance Fund, and banks).
• Court order processing – Managing court orders and preparing deductions from employee wages.
• Preparation of tax declaration files – Creating and uploading TSD Annex 1 and 2 files to the client’s e-Tax Board portal or providing them for client submission.
• Payroll-related statistical reporting – Compiling payroll statistics as required.
• Providing payroll data to auditors – Delivering payroll-related information to the client’s auditors.
• Additional agreements – Offering customized services based on the client’s specific needs.

Most Commonly Used Payroll and HR Software by BDO Estonia:

BDO Estonia clients don’t need to purchase payroll software or handle updates and technical issues—our specialists have the experience and knowledge to manage it all.

• Taavi Personal – A reliable solution for small, medium, and large companies.
• Taavi Palk – A trusted choice for payroll accountants.
• Persona – A single database solution for all HR information.
• Merit Palk – The most popular payroll program in Estonia.
• Yester – Manages vacation, requests, workflows, and more.
• BCS Itera HRM – HRM4Baltics solution for Dynamics 365 Business Central.
• Infotec ERP – Payroll processing solution.