Payroll Outsourcing in Ukraine

Payroll outsourcing means handing an external team the calculation of salaries, taxes and contributions, HR paperwork and employee reporting. Key Solutions calculates salaries, vacation pay and sick pay every month and prepares payroll sheets and payment orders before payday.

+38 (068) 777-14-74 Telegram WhatsApp

Payroll taxes and contributions in Ukraine in 2026

From every salary payment the employer, as tax agent, withholds personal income tax (ПДФО) and military levy, and pays the single social contribution (ЄСВ) on top from its own funds.

ЄСВ is paid with the salary, and the final amount for the month by the 20th of the next month (Art. 9(8) of Law No. 2464-VI). From 1 January 2026 companies report monthly: the payroll tax report is due within 20 calendar days after the month ends (clause 176.2 and subclause 49.18.1 of the Tax Code of Ukraine (ПКУ), as amended by Law No. 4536-IX).

HR records together with payroll

HR records are the paperwork for hiring, transfers, leave and dismissals on which pay is calculated. When one team runs both, orders, timesheets and payroll sheets are reconciled in one place.

• employment contracts and orders on hiring, transfers, leave and dismissal;
• notice to the State Tax Service (ДПС) of a new hire before work starts (Art. 24 of the Labour Code of Ukraine (КЗпП));
• timesheets and the leave schedule;
• entries in the register of insured persons, the electronic work record book (Art. 48 of the Labour Code).

Payroll for companies, sole proprietors and foreign-owned businesses

The service is the same for a company and a sole proprietor (ФОП); reporting differs. A sole proprietor with staff files the payroll tax report quarterly, within 40 calendar days after the quarter (subclause 49.18.2 of the Tax Code); the rest of a sole proprietor's bookkeeping is covered under accounting for sole proprietors. For subsidiaries and representative offices of foreign companies, see payroll for foreign companies and offshore structures and accounting for representative offices.

What is included

• salaries for full-time and part-time staff, fees under civil-law contracts (ЦПД);
• vacation pay, sick pay, compensation for unused leave, indexation and final pay;
• withholding of taxes, ЄСВ and net amounts payable;
• payroll sheets, payslips and payment orders;
• the payroll tax report and sick-pay benefit applications;
• HR orders, timesheets and payroll postings in the accounting system;
• a one-off review of payroll and HR documents before a handover or an inspection.

How we work

1. Payroll and HR review Contracts, orders, payroll sheets and reports for recent months.
2. Contract and access Scope, timesheet handover date and each side's liability.
3. Transfer of data and balances Employee records, leave balances and arrears as of the start date.
4. Monthly calculation Timesheet and HR changes received, pay calculated, payroll sheet agreed with you.
5. Payments and reporting Payment orders prepared, payroll tax report filed.

Timing and legal pay dates

We set the start date so that one party calculates the transition month. Preparation time depends on headcount and the state of HR documents; we fix it in the contract after the review.

Salary is paid at least twice a month, at intervals of up to 16 calendar days and no later than 7 days after the period it covers; vacation pay is paid before the leave unless the employment or collective agreement says otherwise (Art. 115 of the Labour Code). Amounts due on dismissal are paid on the day of dismissal, or the day after the employee asks if they did not work that day (Art. 116).

What affects the cost

• number of employees and civil-law contracts, the main factor;
• pay systems: salary, hourly or piece rates, bonuses, cumulative working time;
• hires, dismissals and transfers per month;
• sick leaves, maternity leaves and vacations;
• the state of HR documents at the start.

We name the price after the review and fix it in the contract.

What we need from you

• Staff schedule, employment contracts and orders for the current year.
• A timesheet every month by the agreed date.
• Leave balances and payroll arrears as of the handover date.
• Access to the accounting system (BAS or another) and a procedure for signing reports with a qualified electronic signature.
• A contact person who approves orders and payroll sheets.

What you get

• payroll sheets and payslips every month;
• payment orders for salaries, personal income tax, military levy and ЄСВ;
• the filed payroll tax report with acceptance receipts;
• HR orders, timesheets and income certificates on request.

Legal basis

Risks, and the case for a contracted team

A payroll error quickly becomes a breach of labour or tax law. The main sanctions:

• work without an employment contract: ten minimum wages per employee, a warning for single tax payers of groups 1–3 (Art. 265(2) of the Labour Code); under martial law Art. 265 fines do not apply if an inspection order is complied with fully and on time (Art. 16(3) of Law No. 2136-IX);
• salary more than a month late or paid in part: three minimum wages, with the same martial-law exception; the employer is released if it proves the delay was caused by hostilities or other force majeure (Art. 10(3) of Law No. 2136-IX), and a delay of a month or more also entitles the employee to compensation (Art. 2 of Law No. 2050-III);
• officers: 30 to 100 non-taxable minimum incomes for late pay and other labour law breaches (Art. 41(1) КУпАП);
• late final pay on dismissal: average earnings for the whole delay, up to six months (Art. 117(1) of the Labour Code).

Our contract fixes the scope, data handover dates and the contractor's liability. A one-off freelancer or a chatbot calculates a single amount, while the monthly cycle, reporting and responsibility stay with you.

Why Key Solutions

Company

ТОВ «АУДИТОРСЬКА ФІРМА «КЕЙ СОЛЮШНЗ», a Ukrainian limited liability company, EDRPOU code 39610085. The company's details are public in the Unified State Register (ЄДР).

Contract

We work under a contract: scope, deadlines and liability are agreed before work starts. Client information is protected by professional secrecy (Art. 11 of Law No. 2258-VIII).

Group

We are part of Innova Consulting Group: legal matters are handled by legal.ua, crypto-asset taxation by crystal.tax.

Office

Our office is at 77 Velyka Vasylkivska St., Kyiv. We serve clients across Ukraine remotely. The specialists who run projects are listed on the Our employees page.

Frequently asked questions

Related services

• Accounting services for companies
• Payroll for foreign companies and offshore structures
• Accounting for a representative office
• Accounting restoration
• Tax advice