Tax News, November 2022

In the November issue of tax news, we focused on topics that are important for the Human Resources Department (HR) and that are related to the correct tax treatment of employees' income. Accordingly, we present to you payroll services and other certain HR support services. In addition, we would like to inform you what is the EU Blue Card for immigration purposes, who can obtain it and what are its advantages.

ARE YOU KEEPING UP WITH YOUR PAYROLL?

Every company deals with payroll on a monthly basis, so we are very well aware that incorrect payroll represents a big risk, both from a tax and labor law perspective.

Have you found yourself in a place where you need someone who deals with payroll on a daily basis, who has in their team not only experts in the technical operation of payroll but also experts in the field of taxes, social security contributions, tax procedures and labor legislation?

In addition to regular tax and legal and accounting advisory EY has specialized team in area of payroll and HR function. Within payroll, we offer a wide range of services, from determining the appropriate insurance basis for employees, registering and de-registering employees to or from social security system, monthly payroll calculations, preparing claims for different types of refunds, annual reporting, human resources support, reporting for internal purposes and preparing various booking files. As part of HR support, we provide comprehensive support in this area, including the preparation of annual leave notices, preparation of employment verification letter for bank loans, maternity leave forms and preparation of the salary certificate for application to the employment office. For appropriate and correct application of payroll accounting it is important that companies have appropriate and up to date internal policies that properly direct the company to apply correct treatments.

An additional administrative novelty introduced by the amendment ZDavP-2N is that a qualified digital certificate will no longer be required to collect documents from the eDavki portal.

DID YOU KNOW THAT FOREIGN WORKERS CAN OBTAIN AN EU BLUE CARD PERMIT IN CASE THEY HAVE HIGHER EDUCATION AND WHAT ARE ITS ADVANTAGES? 

Despite the advantages that the EU Blue Card permit brings to third country nationals, not many are issued according to the statistics of the Employment Service of Slovenia. Data for 2021 shows that out of 23,704 consents and work permits issued that year, only 110 were related to the EU Blue Card type permit.

What is the EU Blue Card?

EU Blue Card is a permit which can be obtained by a third country (non-EU) national who has a degree from at least a higher education institution and minimum compensation that is in line with conditions for EU Blue card. Compared to the single permit, the EU Blue Card has quite a few advantages for both the employer and the foreign worker.

A few advantages are mentioned below:

1. The EU Blue Card is issued for a maximum period of two years, while a single residence may be issued to a third country national for a maximum period of one year.
2. The EU Blue Card can be extended for a maximum period of 3 years (each time), while a single permit for a maximum of 2 years (each time).
3. Third country nationals who are EU Blue Card holder, have the right to bring their family members with them immediately when obtaining the permit. 
4. EU Blue Card holders that obtained an EU Blue Card already in another Member State have increased mobility within the EU area, which also means certain advantages if they wish to obtain it in Slovenia.
5. EU Blue card holders have the possibility of changing their employer or their working place within the first two years with the written approval of the competent authority, and after two years without the written approval.