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Payroll Services for Businesses

Payroll is the one area of a business where the same error repeats itself every month, quietly, until somebody checks. One employee classified incorrectly, a component with no contribution made on it, seniority never updated — and three years later it is an exposure that surfaces in a deductions audit or an employee claim.

What the service covers

  • Monthly payslip preparation for all employees, including hours, travel, overtime, bonuses and expense reimbursements;
  • Form 102 reporting — the periodic return to the authorities on salaries paid and amounts withheld, to both the Tax Authority and National Insurance;
  • Form 101 administration — collecting, checking and filing employees' declarations;
  • Annual returns — form 126 on salaries and withholdings, and form 856 on payments that are not salary;
  • Final settlements for departing employees — severance, leave and convalescence redemption, form 161;
  • Support in deductions audits before the Tax Authority or National Insurance;
  • Management reporting — employer cost by department, project or branch.

Two deadlines you cannot miss

The 15th of the month — form 102 reporting and payment of withholdings for the preceding month. Late filing attracts interest and penalties, and is what creates a rolling withholding debt. The start of each tax year — renewing form 101 for every employee. Where an employee has not completed one, the employer must withhold tax at the maximum rate.

Where businesses actually fail

  1. Misclassifying a service provider as self-employed instead of an employee. This is the costliest exposure in the field: it surfaces retrospectively, and covers both the tax and the social rights going back;
  2. Salary components with no contributions made on them — commissions, bonuses and ancillary payments classified incorrectly;
  3. Benefit-in-kind on a car, phone or meals — not attributed, or attributed only in part;
  4. Seniority, leave and convalescence entitlements not updated at year-end;
  5. Missing or outdated form 101 declarations — the most common problem, and the easiest to prevent;
  6. A departing employee without a proper final settlement — a leading source of claims.

What makes payroll inside a CPA firm different

Payroll has two faces: the operational one — that the payslip goes out correctly and on time — and the tax one, which is examined only when an audit arrives. Most payroll providers handle the first superbly, and only the first.

With us, payroll sits in the same firm that prepares the financial statements and represents you before the authorities. In practice that means: a classification question is examined before it becomes an exposure, contributions are checked against the law and not only against the contract, and when a deductions audit arrives, the person representing you already knows the file from the inside.

Representation before the tax authorities is led by the founding partners, former senior assessment inspectors, and VAT matters are handled by Haim Bublil — 42 years of experience at the Israel Tax Authority.

Who it suits

We run payroll for businesses of every size — from a company with three employees to organisations with hundreds of payslips, including nonprofits and publicly funded bodies where payroll reporting is also reviewed by the funder.

← Read our full guide: CPA services for nonprofits

The information on this page is general and does not constitute professional advice. Reporting obligations and deadlines vary by the type and size of the file — it is worth checking your specific position.

Thinking of moving your payroll to us?

We start by reviewing your existing payslips — there is usually something there worth fixing

Contact us now

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