Payroll outsourcing in Luxembourg

The engagement covers payroll preparation, variable-pay controls, social and wage-tax declarations, and management of the CCSS and CNS calendar.

Contact us

Employer legal obligations

Luxembourg employment, social-security and tax rules impose separate filings and deadlines. We monitor their completion.

Entry declaration

  • Within 8 days via SECUline (DECAFF)
  • Registration number request if 1st affiliation
  • Tax card consultation on MyGuichet
  • Occupational health service affiliation
8 days max

Payslip

  • Mandatory legal mentions
  • Fixed and variable salary calculation
  • Benefits in kind valued
  • Monthly delivery to employee
Every month

Withholding tax

  • Form 950 within 10 days
  • Monthly if amount ≥ €750
  • Quarterly if €75 ≤ amount < €750
  • Annual if amount < €75
10 days max

CCSS declarations

  • Monthly remuneration via SECUline
  • CCSS invoice verification
  • Exit declaration within 8 days
  • Incapacity management CNS/AAA
Monthly

Annual certificates

  • Remuneration certificates
  • ECSP filing before March 1st
  • Via MyGuichet to the ACD
  • For each employee
Before March 1st

Document retention

  • Period based on document category
  • Payroll records covered by the mandate
  • Controlled access and deletion
  • Secure access
By document

The scope of the payroll engagement

The engagement letter states the recurring work, the transmission calendar and the situations that require separate counsel.

Included in the engagement

  • Monthly payroll production Calculation of fixed and variable salaries, bonuses and benefits in kind from validated inputs, followed by preparation of payslips and the payroll journal.
  • CCSS social declarations Entry and exit declarations, monthly remuneration declarations, CCSS invoice verification and work incapacity management.
  • Tax declarations Withholding tax, electronic tax card consultation, annual remuneration certificates and ECSP filing.
  • Administration and inspections Collection of entry and exit information, use of the collective-agreement parameters supplied for payroll, coordination of medical examinations and preparation of records requested during an inspection.

Out of scope stated upfront

  • Foreign-law analysis A cross-border situation that requires foreign-law analysis is coordinated with an adviser in the relevant jurisdiction.
  • Legal drafting and interpretation Legal drafting and interpretation of a collective agreement are coordinated with counsel where the file requires them. The firm applies the parameters supplied for payroll.
  • Proceedings or challenges Legal counsel is involved when an inspection leads to proceedings or a challenge beyond the recurring engagement.

Discuss your payroll needs

File takeover possible at any time of the year.

Contact us

What the engagement produces

Deliverables follow the social-security and tax calendar agreed in the engagement letter.

  • Payslips and payroll journal

    Payroll records Every month

  • CCSS declarations

    Declarations through SECUline Every month and on employee entry or exit

  • Wage withholding tax

    Form 950 through MyGuichet At the applicable frequency

  • Remuneration certificates

    Annual certificates and ECSP filing Every year

How the engagement starts

The takeover organises the data, controls and calendar before the first payroll run.

  1. Scoping the file

    Headcount, payroll variables, benefits in kind and cross-border situations determine the perimeter.

  2. Taking over the data

    Entry and exit information, payroll parameters and the current file are brought into the agreed calendar.

  3. Validating the variables

    Monthly inputs are checked and validated before salaries and benefits in kind are calculated.

  4. First payroll run

    Payslips, the payroll journal and declarations are then prepared according to their respective deadlines.

Related articles

Deepen your knowledge of Luxembourg payroll and social obligations

A travel case and empty chair crossing between two workspaces to illustrate an employee's relocation to Luxembourg Tax The Luxembourg impatriate tax regime 50% exemption on eligible gross remuneration capped at EUR 400,000, payroll treatment and the employer's annual list. Read article Company car, workplace and residential entrance linked within one model to illustrate two benefits in kind Payroll Benefit in kind: company car and housing BIK rates 2026, company car calculation and payslip impact. Read article Anonymous embassy staff member carrying a work folio through an institutional office corridor Tax Embassy employees: tax and social security Specific tax and social regime for embassy and international organization staff. Read article Closed annual accounts portfolio displayed in a quiet archive reading room Accounting Annual accounts filing at the RCS eCDF procedure, publication deadlines and increased filing fees after the deadline. Read article
Related services: Accounting · Tax · Company formation

Frequently asked questions

Payroll outsourcing

What does an outsourced payroll mandate cover?

The perimeter reflects headcount, payroll variables, benefits in kind and cross-border situations. CCSS/CNS filings, checks, record retention and the transmission calendar are set out in the engagement letter.

Do you manage cross-border employees?

The mandate can cover Luxembourg payroll data and the usual formalities affecting cross-border employees, including A1 certificates where applicable. Foreign-law analysis is coordinated with an adviser in the relevant jurisdiction.

What happens in case of ITM or CCSS inspection?

The firm can prepare records, reconstruct payroll calculations and follow the exchanges within the agreed scope. Legal counsel is coordinated where the procedure or a challenge requires it.