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29.6 Payroll Tax Reporting and Filing

Understanding Payroll Reporting​

All employers in Luxembourg must report payroll information to social security authorities (CCSS) and tax authorities. Reporting is mandatory, must be done monthly, and errors or late filings result in penalties.

Monthly Payroll Declaration​

What Must Be Reported​

Required Information:

  1. Employee Information: Name, social security number, employee ID
  2. Salary Information: Gross salary, net salary, salary components
  3. Social Charges: Employee and employer contributions
  4. Working Hours: Hours worked, overtime hours
  5. Absences: Vacation days, sick days, other absences

Declaration Format​

Electronic Declaration:

  • Filed through eCDF or CCSS portal
  • XML format or online form
  • Must include all required fields
  • Validated before acceptance

Filing Deadlines​

Monthly Deadline​

Filing Deadline: 15th of following month

Example:

  • January payroll
  • Filing deadline: February 15

Payment Deadline​

Payment Deadline: 15th of following month (same as filing)

Important: Both declaration and payment must be completed by deadline

Filing Process​

Step 1: Prepare Payroll Data​

  • Calculate all payroll amounts
  • Verify calculations
  • Gather employee information
  • Prepare declaration data

Step 2: Access eCDF/CCSS Portal​

  • Log in to eCDF or CCSS portal
  • Select payroll declaration
  • Enter declaration period

Step 3: Enter Payroll Information​

  • Enter employee information
  • Enter salary amounts
  • Enter social charge amounts
  • Enter other required information

Step 4: Validate and Submit​

  • Review all information
  • Validate declaration
  • Submit electronically
  • Receive confirmation

Step 5: Pay Social Charges​

  • Pay social charges through portal
  • Receive payment confirmation
  • Keep confirmation for records

Annual Reconciliation​

Annual Declaration​

Annual Requirements:

  • File annual payroll summary
  • Reconcile monthly declarations
  • Report annual totals
  • File by deadline (typically March 31)

Annual Information:

  • Total salaries paid
  • Total social charges paid
  • Employee count
  • Other annual statistics

Penalties for Non-Compliance​

Late Filing Penalties​

Penalties:

  • €250 - €2,500: Fixed penalty for late filing
  • Additional penalties: For very late filing
  • Interest: On unpaid social charges

Late Payment Penalties​

Penalties:

  • Interest: Charged on overdue amounts
  • Additional penalty: For persistent non-payment
  • Collection action: For serious non-payment

Incorrect Declaration Penalties​

Penalties:

  • Correction required: Must correct errors
  • Penalties: For deliberate errors
  • Interest: On underpaid amounts

Record Keeping Requirements​

Required Records​

Must Maintain:

  • Payroll registers
  • Employee records
  • Social charge calculations
  • Payment confirmations
  • Declaration confirmations

Retention Period​

Retention: 10 years (same as other accounting records)

Important: Keep all payroll records for 10 years

Luxembourg Compliance Note​

Critical Requirements:

  • Monthly filing: Must file every month
  • Timely filing: File by 15th of following month
  • Accurate information: All information must be accurate
  • Timely payment: Pay by deadline
  • Record keeping: Maintain records for 10 years

Best Practices:

  • Automate process: Use payroll software
  • Review before filing: Review all information
  • Set reminders: Calendar reminders for deadlines
  • Backup records: Keep backup copies
  • Professional help: Use payroll service if needed

Think It Through​

Artisan Boulangerie forgot to file their January payroll declaration. They realize this on February 20. What should they do? What are the consequences?

Concepts in Practice​

Monthly Payroll Reporting

TechLux Solutions January payroll reporting:

Payroll Data:

  • 5 employees
  • Total gross salaries: €20,000
  • Total employee social charges: €2,840
  • Total employer social charges: €3,140

Filing Process:

  1. Calculate payroll (completed January 31)
  2. Prepare declaration data (February 1-5)
  3. Log in to eCDF (February 10)
  4. Enter payroll information (February 10)
  5. Validate and submit (February 10)
  6. Receive confirmation (February 10)
  7. Pay social charges (February 10)
  8. Receive payment confirmation (February 10)

Result: Filed and paid on time, no penalties.

Deadline: February 15 (met on February 10)