Hiring and Termination Notifications
An employer must notify SGK of a newly hired employee no later than the day the employee starts work. For an employee who leaves, a termination notification must be filed within 10 days of the departure date. Failing to file these notifications on time may result in an administrative fine.
Monthly Payroll Processing
For regular employees, SGK premiums, unemployment insurance premiums, and income tax/stamp tax deductions are calculated on gross wages each month to determine net pay. Payroll is declared together with the Withholding and Premium Service Declaration by the 26th of the following month.
- Employee SGK Premium: Deducted from gross wages at a set rate.
- Unemployment Insurance Premium: Calculated as both an employee and employer share.
- Income Tax: Calculated on a bracket basis according to cumulative taxable income.
- Stamp Tax: Deducted from gross wages at a fixed rate.
Updates to the minimum wage or tax brackets during the year directly affect payroll calculations, which is why payroll processing should be handled by a financial advisory team that stays current with the legislation.
Overtime and Leave Tracking
Regularly tracking overtime pay, accrued annual leave entitlements, and leave taken is important both for the accuracy of payroll calculations and for preventing potential labor law disputes.
Personnel File Obligations
Employers are required to maintain a personnel file for each employee containing the employment contract, identity information, health report, SGK hiring notification, and similar documents. Keeping these files complete and up to date matters in the event of an SGK or labor inspection audit.
Process Management
At Orkun & Orkun, we manage our clients' payroll and SGK processes end to end, providing support at every step from hiring/termination notifications to monthly payroll preparation.