How Employers in Norway Handle Withholding and Payroll Taxes

Navigating withholding and payroll taxes in Norway is a key responsibility for employers. Norway’s system requires companies to ensure that income tax and social security contributions are withheld correctly from employees’ salaries and paid to the Norwegian Tax Administration. This guide explains how the system works, what employers must do, and how compliance protects both businesses and workers.

📌 Employer Responsibilities in Norway

Employers in Norway act as intermediaries between employees and the Norwegian Tax Administration (Skatteetaten). Their primary duties include:

• Withholding the correct amount of income tax from salaries based on tax deduction cards.
• Deducting employee social security contributions (trygdeavgift).
• Paying employer’s social security contributions (arbeidsgiveravgift) based on total salary costs.
• Submitting monthly a-meldingen reports with salary, deductions, and employment information.
• Ensuring timely remittance of withheld taxes to the authorities.

💰 Withholding Tax (Forskuddstrekk)

The withholding tax system ensures that employees prepay their income taxes during the year. Employers must use each employee’s skattekort (electronic tax deduction card) issued by the Tax Administration.

If an employee fails to provide a skattekort, the employer must withhold 50% of gross salary.

📊 Social Security Contributions

Payroll taxes in Norway include mandatory contributions to the National Insurance Scheme:

• Employee contribution: 7.8% of personal income (5.1% for those under 17 or over 69).
• Employer contribution: 14.1% of gross salary (lower in some regions). The 19.1% surcharge on high salaries is being abolished in 2025.

These contributions fund healthcare, pensions, unemployment benefits, and other social welfare programs.

📝 Payroll Reporting: The A-Meldingen

Employers must submit an a-meldingen each month. This report includes:

• Employee income details (salary, allowances, benefits).
• Withheld taxes and contributions.
• Employment status changes (new hires, terminations, leave).

Failure to file the a-meldingen on time can result in fines and penalties.

⚠️ Penalties for Non-Compliance

Employers who fail to withhold and remit payroll taxes may face:

• Interest charges on late payments.
• Penalty fees from Skatteetaten.
• Legal liability for unpaid taxes.

Ensuring accurate and timely payroll reporting protects both the employer and the employee.

💡 Tips for Employers

• Always verify employee skattekort details before processing payroll.
• Use reliable payroll software that integrates with a-meldingen submissions.
• Plan for the 14.1% employer contribution in your salary budget.
• Seek professional advice if employing foreign workers under PAYE rules.