Payroll Services in Bulgaria. Foreign employees.

“Why should we trust Elan Consulting for payroll and staffing services, concluding an employment contract, including with a foreigner and issuing a personal identification card to a foreigner?”

Choosing the right partner for accounting and consulting services is key to the success and proper functioning of any company. Accounting firm “Elan Consulting” offers specialized services in the field of Labor Relations and Payroll (Payroll) and personnel management, including the conclusion of employment contracts with foreigners and issuance of Uniform Civil Numbers (EGNs) or Personal Numbers of Foreigners (PNCs). Let's take a look at why Elan Consulting is the best choice in these areas.

Professional experience and knowledge: “Elan Consulting” has extensive experience and specialized knowledge in the field of payroll and personnel management. Our team of qualified specialists is fluent in all aspects of labor legislation and is always informed about the latest changes and updates.
Individual approach to the client: Every company has unique needs and requirements. We at Elan Consulting offer customized solutions that exactly meet the specific requirements and goals of each of our clients.
Specialization in working with foreigners: We understand the complexity of the processes associated with the hiring of foreigners, including the conclusion of employment contracts and the issuance of an EGN/LNC. Our experts are familiar with all necessary procedures and legal requirements, which guarantees peace of mind and security for our clients.
Compliance with legal provisions: At Elan Consulting we attach great importance to strict compliance with all legal requirements. This ensures that our clients are in full compliance with Bulgarian labour and migration legislation.
Time and Resources: Cooperation with us allows companies to optimize their time and resources. By providing comprehensive service and consulting, we help our clients focus on their core business, while we take care of all aspects of payroll and personnel management.
Trust and Reputation: “Elan Consulting” has built a solid reputation as a reliable and professional partner. Our commitment to quality and transparency in our work is a major reason numerous companies trust us.

By choosing Elan Consulting as your partner in the field of payroll and personnel management, you trust experts who are committed to providing high quality services in line with the latest trends and legal requirements. We are here to make it easier to manage your human resources and help you achieve your business goals efficiently and efficiently.

What does the abbreviation “payroll” mean?

Accounting firm “Elan Consulting” offers its clients competent services in the field of Labor Relations and Payroll (TRZ in Bulgarian). This is an important part of the accounting activity, as it includes the management of employment contracts, the calculation of wages and taxes, as well as the processing of other relevant documents. Our goal is to provide complete and accurate information about the history and importance of payroll, as well as the function of the Personnel Department.

Payroll is a term that encompasses all the processes and activities related to the management of human resources in an organization. In the past, before the development of modern technologies and software solutions, payroll management was associated with large administrative departments in any organization.

Personnel departments were responsible for the preparation of employment contracts, documents for changing labor relations, issuing leave orders and other similar tasks. They have been key to maintaining order and the proper conduct of labor relations in companies.

Another important component in payroll management is the department responsible for calculating time worked, wages, social security contributions and taxes. This department has played and continues to play a key role in the correct and accurate calculation of labor remuneration and related obligations to the state.

With the development of technology and the introduction of automated accounting systems, payroll functions have undergone a significant transformation. Automation and digitalization have greatly facilitated the processes of personnel management and payroll calculation, thereby reducing the need for large administrative departments.

Can I hire foreigners in my company who are not EU citizens and what are the different scenarios?

Yes, you can hire foreigners who are not citizens of the European Union (EU) to your company in Bulgaria. However, different rules and procedures apply depending on their nationality, status and the purpose for which they wish to work in Bulgaria. Some of the different hypotheses are:

Citizens of EU countries or Switzerland: Citizens of EU Member States or Switzerland have free movement of labour and can work in Bulgaria without needing a work permit.
Foreigners with a work permit:Citizens of non-EU countries and Switzerland must obtain a work permit before starting to work in Bulgaria. This permit is usually issued by the Employment Agency and is associated with specific conditions and period of work.
Seasonal workers: Temporary and seasonal workers from non-EU countries may be issued a work permit in Bulgaria within certain sectors and periods.
Highly qualified specialists: For foreigners who possess special qualifications or knowledge, a work permit may be issued for specific specialized employment.
Investors and entrepreneurs: Foreigners who plan to invest or establish their own business in Bulgaria can obtain a work permit based on their entrepreneurial status.
Students: Foreigners who are students in Bulgaria can work a certain amount of hours without a work permit, but there are restrictions on working hours.

Issues related to hiring foreigners are complex and can vary depending on the specific circumstances. Therefore, it is advisable to seek professional legal assistance or consultation from specialists from ELAN CONSULTING EOOD in order to familiarize yourself with all the requirements and procedures that must be followed when hiring foreigners in your company in Bulgaria.

Issuance of a personal identification number/national identity card to a foreign citizen (foreigner) and issuance of a work permit

Accounting firm “Elan Consulting” provides comprehensive support and advice on issues related to the employment of foreigners in Bulgaria. In this regard, one of the key aspects that our clients must take into account is the process of issuing a Unified Civil Number (EGN) or Personal Number of a Foreigner (PNH), as well as the registration of an address to obtain a work permit. This process involves several steps and depends on the legal status of the foreigner in the country. We at Elan Consulting are ready to provide our expertise to facilitate these procedures for our clients.

Issuance of LNC/Official number from the register of the NRA to a foreigner

Issued by the Migration Directorate of the Ministry of Interior: The LNC to a foreigner is issued by the Migration Directorate of the Ministry of Interior and the subordinates and bodies for migration control. In each regional city in Bulgaria there is a Migration Sector of the Ministry of Internal Affairs, which is responsible for this activity.
Special cases - temporary protection for Ukrainian citizens: In some cases, such as temporary protection for Ukrainian citizens, procedures can also be carried out by the State Agency for Refugees, as well as its units.
Obtaining legal status of residence: It is important to note that the LNCH is issued after obtaining the legal status of residence in Bulgaria - be it a permit for long or long-term residence, international protection, refugee status or temporary protection.
Submission of an application for international protection: Foreigners who have applied for international protection under the Asylum and Refugees Act may also be granted LNCH. In this case, the LNC is issued at the time of submission of the application.
Issuance of LNCH by the NRA (the so-called official number from the NRA register): In the event that the foreigner does not yet have a LNCA and has not started a migration procedure, but wants to have an employment contract drawn up for him, the LNCA can be issued by the National Revenue Agency (NRA) as office number from the register of the NRA. To do this, visit the NRA counter and the foreigner must present a foreign passport.

Important!! Ythe construction of a job for a foreigner in Bulgaria without the appropriate permission from the Employment Agency is prohibited under the Law on Labor Migration and Labor Mobility and fines can reach 20,000 leva (just over 10,000 euros)! Therefore, it is essential that the employment contract is drawn up correctly and by a competent lawyer. We at Elan Consulting have the necessary expertise and experience to ensure compliance with all legal requirements and to ensure the proper accommodation of foreigners to work in Bulgaria.

Accounting firm “Elan Consulting” is always focused on providing accurate and up-to-date information to its clients regarding labor and migration procedures in Bulgaria. An important aspect of our consulting activity is the process of issuing a Unified Civil Number (UID) to foreigners, which is an important step in the settlement of employment relations with persons who do not have Bulgarian citizenship.

Issuing an EGN to a foreigner - is it possible at all?

Obtaining an EG for a foreigner is a process that is carried out through the Unified System of Civil Registration and Administrative Services (ESGRAON). This happens after the foreigner submits an application to the GRAO for entry in the population register by permanent addressvillage. It is important to note that the EGN is issued only to foreigners who have a permanent residence permit in Bulgaria,which means that temporary residents or those who are in the process of regulating their residence (that is, have applied for international or humanitarian protection or long-term residence) do not meet the criteria for obtaining an EGN.Also, the foreigner should have obtained the status permanently - that is, if he is still in the procedure, then the personal identification number cannot be issued. An EGN can also be issued to foreigners who have received refugee status, as it gives almost the same rights as Bulgarian citizens.

The process of issuing a Personal Number to a Foreigner (PNL) is also an important step in the context of labor relations and migration. The MLN is issued by the Migration Directorate of the Ministry of Interior and is necessary for foreigners who are in the process of settling their legal status in the country, including those who have applied for international protection.

At Elan Consulting we understand the complexity of these procedures and are ready to help our clients with the correct implementation of all requirements and steps to ensure compliance with Bulgarian legislation and facilitate the successful inclusion of foreigners in the Bulgarian labor market.

Why would it be a bad idea to manage the payroll and personnel of my company myself?

Running a company's Labor and Payroll (Payroll) by one person who is also its manager and takes care of all other aspects of the business can be an extremely complicated task and turn out to be a bad idea for the following reasons:

Complexity of tax and labor legislation: Payroll legislation is complex and constantly changing. Keeping these accounts requires deep knowledge and experience in the field of tax and labor law. Errors in this process can lead to financial fines and other adverse consequences.

Time and Resources: Payroll processing and other administrative duties take a significant amount of time and effort. Taking responsibility for payroll into your own hands can distract you from other critical aspects of the business.

Errors and discrepancies: Improperly processed salaries or the inability to comply with legal requirements can lead to dissatisfied employees, get you into problems with institutions and even unnecessary lawsuits

Data security: The processing of sensitive personal data related to employee salaries requires security and appropriate data protection measures. Neglect of this may lead to a violation of personal data rights.

Renewal of knowledge:Changes are often made to the legislation that require you to keep abreast of the latest updates. Otherwise, you may miss important changes and make mistakes.

Professional advice: Accounting and tax professionals specialize in the field and can provide valuable advice to optimize your company's financial processes so that you can focus entirely on your core business.В

As a result, the best practice is to use the services of a professional accounting firm or a qualified accountant who has the experience and knowledge to successfully manage payroll. This will allow you to focus on the main activity of your company, while specialists take care of the exact and legal compliance of payroll.

What payroll and personnel activities are carried out in an accounting house?

In one accounting house, various activities related to Labor and Wage (Payroll) are carried out, which cover the processing and management of labor relations and salaries of employees in the companies that use their services. Some of the main payroll activities that an accounting firm can provide include:

Payroll processing: The accounting firm can take care of the processing of the salaries of the company's employees. This includes the calculation of wages, taxes and social security in accordance with the legislation.

Compilation of slips and payroll: Accountants draw up slips and payroll for each employee, which show in detail how wages were calculated and what taxes and contributions were withheld.

Insurance contributions and declarations: Accountants pay the respective insurance contributions due for each employee of the respective type. The amount and distribution of insurance contributions for each of the State Social Insurance Funds (LLC) is determined by the provision of Article 6, paragraph 1 of the Social Insurance Code. The amount of insurance contributions to the LLC funds is determined as a percentage of the insurance income of the insured persons.

Leave and sick leave processing: Accountants keep track of and report employee leave, sick and other absences and reflect them in their work records.

Reporting of statistical data: The accounting firm may submit statistical data on the company's work activity to the National Statistical Institute (NSI).

Consultations on payroll: The accounting firm can provide advice to its clients on labor legislation, tax and social aspects of labor relations.

Archiving payroll documentation: The accounting house maintains an archive with all payroll related documents to meet the legal requirements for the storage of the documentation.

These are just some of the main payroll activities that an accounting firm can provide to its clients, but the range of services may vary depending on the specific needs of companies and arrangements with clients.

Frequently Asked Questions

What is payroll and why is it important to keep accounting for it?

Labor and wages (payroll) is a special term that summarizes all activities related to the storage of information about workers, their employment relationships and the procedures regulated by law for the accrual and payment of wages and insurance. All enterprises, regardless of size and sector, must keep payroll.

How do I deal with tax and insurance obligations related to payroll?

For the management of tax and insurance commitments related to payroll, it is essential to keep accurate accounting and prepare correct reports. This includes tracking tax deductions and insurance contributions that are owed by the employer. Elan Consulting provides professional accounting services, which include the management of tax and insurance obligations related to payroll, thus ensuring security and compliance with legal requirements.

What is the role of the accounting firm Elan Consulting in the management of payroll and personnel?

The accounting firm Elan Consulting has an important role in the management of payroll and personnel for small and large companies. We provide specialized accounting services, which include keeping the Labor Register, monitoring tax and insurance commitments and preparing the necessary documents. Our experienced accountants ensure that your company complies with legal requirements and keeps up-to-date information about its workers, giving you peace of mind and focus on your business.