Serbia

Introduction

Workday provides payroll management services for employers in Serbia. 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 Serbia 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 Serbia:

• Garnishment document
• Vacation pay calculation

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 Serbia:

• registration, change, or deregistration of mandatory social insurance must be done electronically via the Central Registry of Mandatory Social Insurance (CROSO).
  • required form for this process is the “MA” form.
• If the submitter is not the founder-entrepreneur or director of the legal entity, authorization is required to submit the registration/change/deregistration. If the founder is an individual (sole proprietor), they must pay contributions based on the minimum assessment base.

Terminations:

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

Specific for Serbia:

• De-registration from Mandatory Social Insurance (CROSO) must be completed within 3 days at the latest
• calculate and process final Payroll
• calculation and payment of unpaid Wages
• calculation of any unpaid incentives, expenses
• calculation and payment of unused PTO (Paid Time Off)
• severance Pay if applicable

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 Serbia:

• Mandatory allowances:
• Meal allowance
• Annual leave allowance
• Commuting/travel allowance (if applicable)
• Health benefits dependent enrollment (deductions)
• Voluntary private pension insurance
• Working-from-home allowance
• Any other additional payments, such as bonuses, expenses, overtime, or other allowances

Payment Files:

• prepare employee salary payments by generating standard bank files, preceded by the mandatory tax calculation process to obtain the BOP (tax clearance document) required by the Payment Operations team for releasing the payroll.
• facilitate payments to local authorities by generating standard bank files and handling the required BOP (tax filing) submissions on the Serbian tax portal.
• private pension fund or a Bailiff order (garnishment).
• process third-party payments by generating bank files or setting up direct debits and other payment methods, including private pension fund contributions or bailiff orders (garnishments)

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 Serbia:

• issue Year-End Tax Certificates (PPP PO forms) for all employees by the end of January for the previous tax year.
• individuals earning over 3× the national average salary must file an annual income tax return (threshold published yearly).Tax is self-assessed and submitted via the ePorezi portal using form PP GPDG.
• filing is the employee’s responsibility; the employer only provides the PPP PO certificate, which shows all income and contributions paid by the employer.

Payslips:

• Create and deliver Payslips in the local 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

Specific for Serbia:

• non-taxable expenses and per diem report
• transportation allowance report

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 Serbia:

• submission of the Individual Tax Return Form (PPP-PD) - monthly – after submission, a notification will be issued with the details required for payment of withholding tax and social contributions.
• electronic submission of the Report on Fulfilling the Obligation to Employ Persons with Disabilities (monthly), refers to a legal requirement for employers in Serbia, in accordance with the Law on Professional Rehabilitation and Employment of Persons with Disabilities.
  • all employers with 20 or more employees are required to employ at least one person with a disability for every 20 employees.
  • example: If a company has 40 employees, it must employ 2 persons with disabilities.
  • newly registered employers are exempt from this obligation during their first two years. 
  • if the employer does not meet this obligation, they may instead pay a monthly fee to the Fund for Professional Rehabilitation, amounting to 50% of the average salary for each person they were obligated to employ but did not.

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