Austria

Introduction

Workday provides payroll management services for employers in Austria. Part of this service will be delivered through Workday’s partner Remote. This document describes the standard product and service offering, the responsibilities of all parties and the country-specific elements required to run payroll for Austrian employees.

Product Scope

This section outlines the standard Payroll features available under Workday GO Global Payroll provided by Remote.

Features

• Payroll processing for salaried and hourly employees (Full time and Part time)
  • Calculation of gross compensation items
  • Calculation of net pay, deduction, and employer contributions
  • Generating and storage of payslips
• Customer employee management (Starters and Leavers)
• Tax and other statutory filings (detailed filings can be found in the services section)
• Ability to add custom payroll calendars and schedules
• Reporting:
  • Gross to Net Report
  • Payroll cost reporting
  • Variance reporting
  • General Ledger summary and detailed reports
• Bank file generation for employee and statutory payments
• Ability to parallel test run payroll outputs Vs historical data to confirm accuracy during deployment

Responsibilities

This section outlines the standard responsibilities for Workday and the customer. These responsibilities apply across all payroll cycles.

Workday responsibilities.

Workday will:

• Provide the platform through which you maintain your employee, compensation, time-related and payroll processing data,
• Facilitate the collection and submission of your employee data and payroll inputs,
• Onboard/offboard your employees for payroll processing,
• Facilitate payroll and payroll tax transactions following your approval of payroll information for each payroll cycle,
• Calculate your employee payroll and its associated liabilities (including, but not limited to, taxes withheld, expenses, and other payroll related costs),
• Generate, and store payslips to your employees,
• Generate a bank file for payments (as applicable), and
• Provide additional adhoc services requested by you at Workday's discretion, where such services fall within Workday's suite of offerings.

Customer responsibilities

As the legal employer, you retain full responsibility for the employment relationship and for ensuring the accuracy of all information used to process payroll. Specifically, you are responsible for:

1. Employment Agreements & Compliance:
   • Owning the employment agreements with your employees and ensuring these agreements comply with applicable law,
   • Ensuring that the data held in the system accurately reflects all employment agreement terms (e.g., compensation, working hours, benefits, job classification).
2. Payroll Data Accuracy & Completeness:
   • Providing accurate, complete, and timely payroll data for each payroll cycle, including your employee details, compensation, time & attendance, benefits, pension information, bank details, and any stationary documents,
   • Validating all payroll-relevant data before each payroll run,
   • supplying any information not captured in the system (such as taxable expenses, certain benefits, equity-related items),
   • Review, approve and finalise payroll information generated,
   • Ensure you complete any payroll returns to tax agencies that were due for payroll tax liabilities incurred prior to using Workday GO Global Payroll provided by Remote,
   • Cancel any other payroll services of professional employee organizations or companies providing payroll-related services for your employees to be paid through Workday GO Global Payroll provided by Remote (cancellation must be prior to any official payroll run by Workday).
3. Workday Deployment & Configuration:
   • Providing complete and correct requirements during implementation,
   • Validating your Workday deployment and ensuring payroll outputs generated by Workday are correct,
   • Updating your Workday configuration as needed to maintain accurate payroll-related data flows.
4. Benefits & Pensions Responsibilities:
   • Managing all your employee benefits (including health insurance and pension schemes) in accordance with local legislative and regulatory requirements,
   • Ensuring all benefit-related earnings, deductions, and taxable/non-taxable benefit valuations are accurately recorded in the system.
5. Payments & Disbursements:
   
   • Using local bank files provided by the service to pay your employees their net pay,
   • Using local bank files provided by the service to pay local authorities payroll taxes and benefit contributions,
   • Coordinating directly with your bank to resolve any issues during the disbursement process.
6. Documentation & Authorisations:
   • Supplying all data and documents necessary to process payroll and statutory filings,
   • Executing agent authorisation for regulatory authorities for Remote to act on your behalf.
7. Employee Communication:
   • Communicating payroll outcomes and related information to your employees (accessible through Workday employee self-service if configured in your account),
   • Understanding that neither Workday nor Remote provides employee-facing support or communicates directly with your employees.

Workday Services Scope

Workday shall provide the following services as part of Workday GO Global Payroll provided by Remote:

Payroll management

Standard Payroll Processing:

• Review and validate payroll input data,
• Calculate payroll, in support of statutory requirements and applicable collective bargaining agreements, and notify affected customers, where applicable,
• Generate payroll reports and provide them to the customer.

Specific for Austria:

• Garnishment Processing: Preparation of garnishment documents and integration into payroll for automatic deduction.
• Vacation Pay Calculation: Accurate computation of accrued and payable vacation based on employment terms and applicable regulations.

New Starter Processing:

• Register new hires with local authorities (e.g. tax, public social security system),
• Set up customer employees in the payroll system and provide pro-rated salary calculations based on start date,
• Submit mandatory employment declarations/forms to government portals or agencies,
• Register customer employees for statutory benefits like pension, insurance, and other country-specific schemes,
• Complete all actions on or before payroll approval date.

Specific for Austria:

• Completing registrations for new hires in compliance with the Austrian social security administration (ÖGK) before their start date and deregistrations for departing employees within seven days after the end of insurance coverage.

• Handling standard tax-related submissions, including E30 and E31 forms for the Familienbonus+, to ensure accurate application of eligible deductions.

• Calculating prorated salaries and applicable allowances in accordance with all relevant regulations, including requirements outlined in the applicable Collective Bargaining Agreement.

Terminations:

• Process terminations, including final payroll, payslip and calculations for termination and vacation pay,
• De-register customer employees with local authorities.

Specific for Austria:

• Final Payment Payslip

• Pro-rated salary calculated in accordance with all relevant regulations (e.g., the applicable Collective Bargaining Agreement).

• Pro-rated 13th and 14th salaries determined based on the applicable regulatory requirements.

• Payment of outstanding overtime, where applicable (for salaried contracts only; not applicable to “all-in” agreements).

• Payout of unused accrued holiday leave.

• Neverance payment, if required under applicable legislation or contractual terms.

• Notice period compensation, including all mandatory deductions for social security contributions and income tax. The social security end date must be updated within the system and appropriate termination reasons recorded.

• Social security deregistration of leavers (within 7 days after termination of insurance coverage)

Benefits Processing in Payroll:

• Process payroll benefits, where applicable, based on customer instructions and local compliance, including collective bargaining agreements. Where any such instruction conflicts with legal requirements, the affected customer will be notified, who shall have final decision-making authority, provided that Workday reserves the right to terminate services if customers proceed with non-compliant instructions after notification.
• Note: health benefits enrollment is not included.

Specific for Austria:

• Processing the benefit in payroll calculation for:
  • Health Insurance (statutory and private)
  • Pension Insurance (statutory and private)
  • Company Car
  • Bonus Payments / Holiday Pay
  • Childcare Subsidies
  • Other Non-Cash Benefits

Payment Files:

• Provide bank file outputs for salary: generate standard bank file outputs to support the payment of your employee net salaries. These files are provided solely for the customer to execute through their chosen banking institution. Workday does not initiate, authorise, or process any payments.
• Provide bank file outputs for statutory payments: prepare standard payment files for statutory contributions, social security, income tax withholdings, union-related payments and other mandatory employer obligations, in support of Austrian regulation. Execution of these payments remains the full responsibility of the customer.

Year-End Activities:

• Submit employer annual wage/tax declarations in support of local authority format and deadlines,
• Distribute employee annual wage/tax declarations (annually).

Specific for Austria:

• Annual Income Statement (L16 / Jahreslohnzettel): Issued for all employees, detailing employment, salary components, tax reliefs, social security contributions, and pension plan information.
• Municipal Tax Statement (Kommunalsteuererklärung): Provides the annual tax calculation basis, allocated by relevant municipalities.
• Underground Tax Statement – Vienna Only (Dienstgeberabgabeerklärung): Reports all contributions to the underground tax, including applicable exemptions for eligible employees.
• Heavy Labor Hours Reporting (Schwerarbeitsmeldung): Prepared based on required data provided by the customer.
• Sick Leave Reimbursement Application (AUVA Grant): Applicable for companies with fewer than 50 employees; based on required data provided by the customer.
• Annual Payroll Journal (Jahreslohnkonten): Comprehensive record of all payroll activity throughout the year.

Payslips:

• Create and deliver Payslips in the local language and in the English Language

Reporting and analytics

Monthly Payroll Output / Reports

• Standard monthly reports:
  • Gross to net
  • Payslips
  • Salary list
  • Payment list
  • Authorities payments list
• Supplementary payroll run, where available

Recurring statutory filings & submissions:

• Prepare and submit required filings, including tax withholdings, social security, and other statutory contributions monthly, quarterly or annually, in support of local regulations.

Specific for Austria:

• Preparation and submission of all required payroll reports, including the Monthly Social Security Contribution Base Report (mBGM) in accordance with ÖGK processes.

Service and support

Ongoing support:

• Support customers via chat and email with payroll-related questions, including input validation, and timelines.

Assigned contact:

• Dedicated Payroll Customer Success Manager (CSM), for customers with 100 payroll employees or more

Additional payroll services, (subject to additional charge)

Off-cycle payruns:

• Off-cycle simulations & payments, amendments or re-runs,
• First off-cycle payrun per month is included; additional payruns are chargeable.

Customized Reports:

• Tailor standard reports to meet specific business needs - adjusting data type, level of detail, frequency, and format based on system capabilities and limitations.

General Ledger (GL) Customized Report:

• Create a customized General Ledger Report based on the customer's chart of accounts and GL format.

Customized banking files:

• Setup and customisation of monthly bank files based on customer specific requirements and specifications,
• Monthly transmission and delivery of the configured bank files to designated recipients or systems