Hiring in Iceland

Achieve seamless business operations with payroll services in Iceland, a unique European island known for its landscapes and football prowess. With a population of around 370,000, Iceland stands as an underdog with a fascinating history.

Gaining independence in 1918, Iceland's economy thrives on fishing and aluminum mining. Ranked as the world's 7th most productive country per capita, Iceland offers a flexible workforce with favourable working agreements and robust employment laws.

Hiring in Iceland becomes advantageous with a highly educated, multilingual workforce, where up to 88% speak English. Uncover the potential of this often-overlooked nation with expert payroll services in Iceland and navigate the Icelandic business landscape with ease.

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Contents

Our Expertise

Simplified global payroll services in Iceland

Navigating the intricacies of global payroll can be daunting. TopSource Worldwide offers streamlined payroll services that ensure timely, accurate, and compliant global payroll processing to support your expansion into Iceland and beyond.

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Global payroll expertise

TopSource Worldwide offers global payroll and HR expertise in over 150 countries, simplifying global expansion for growth-oriented businesses.

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Dedicated support

Benefit from a dedicated account manager and team, ensuring you always have a direct point of contact for all your payroll-related queries and needs.

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Compliance assurance

TopSource Worldwide's in-country compliance experts ensure you stay compliant with local regulations, minimising risks and penalties for your business.

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Flexible solutions

Because every business is unique, TopSource offers tailored solutions to ensure our payroll services align perfectly with your individual needs.

Global Employee Cost Calculator

Estimate the cost of your new hire with our calculator. Simply enter their location and salary information in to this handy tool to see what will be spent in employment costs each month.

Testimonials

Hear from our clients about our payroll services in Iceland

With TopSource we were able to have employees hired or maintained in Nutreco without having to establish an entity in these countries for only 1-2 employees. I think most countries are covered by TopSource, so they can help us with almost all cases. Good advice on conditions and direct contact with employees. Invoicing done directly to the company. An easy process compared to hiring employees by ourselves.

Annette van Duijnhoven

Nutreco

We searched the market for a local payroll vendor in 2014 and we chose TopSource as our partner. We were looking for error free and timely payroll processing and TopSource Worldwide delivers this, saving us time and money. We have worked together for 8 years now and would recommend them to anyone.

Praveen Lihinar

Sungard Availability Services India Pvt Ltd

TopSource Worldwide has a detailed and methodical onboarding process that made it easy for us to get set up and running with our UK employees. They were able to take the worry out of trying to comply with all local laws and regulations. Because they have this knowledge we do not have to research on our own and hope we are in compliance. This has saved us hours of time and gives both the company and employees a sense of security.

Supervisor

Client based in Ft Worth, Texas, USA
Navigating global payroll with precision

Streamlining global payroll for Iceland, one step at a time

In today's global business landscape, managing payroll across borders can be complex. With our payroll management system, we simplify your payroll process. From initial consultation to final disbursement, our methodical approach ensures accuracy, compliance, and peace of mind.
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Consultation and setup

To tailor our services to fit your unique requirements, we start with a consultation to understand your business, its global expansion goals, and specific payroll needs. We also guide you through the initial setup to ensure all necessary details are in place.
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Data collection and integration

Our team integrates TopSource Worldwide's platform with your existing HR and finance systems to ensure a smooth data flow. Every month, we'll collect necessary payroll data, including hours worked, bonuses, deductions, and other relevant information.
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Process and compliance checks

Once we have all the data, our experts process the payroll to ensure all calculations are accurate and compliant with local regulation. Our team also handles tax, benefits, and other deductions, in accordance with regulatory requirements.
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Review, approve and disburse

Before disbursing salaries, we provide a detailed payroll report for your review. Once approved, funds are transferred to employees' accounts. We also manage tax submissions and provide all necessary payroll documentation, ensuring transparency and trust.
Get started

Global Expansion Simplified

Setting up your business in Iceland

Venturing into the Icelandic market can be both exciting and challenging. With distinct business regulations, cultural nuances, and economic landscapes, it's essential to have a clear roadmap for your business establishment journey.

TopSource Worldwide is here to guide you every step of the way. From understanding local regulation to ensuring smooth operational transitions, our expertise ensure that setting up your business in Iceland is swift and efficient.

Start your Iceland expansion
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Insights

Key insights into Iceland's landscape

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Currency: Icelandic Króna (ISK)

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Language: Icelandic

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GDP: $27 billion (USD)

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Population size: 376,283

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Biggest industry: Tourism

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Cultural highlights: Stunning landscapes, Norse mythology, and a rich literary tradition.

Seamless Workforce Management

Effortless global Employer of Record (EOR) solutions

In the ever-evolving global business landscape, managing a diverse international workforce can be complex. This is where TopSource steps in as an invaluable Employer of Record (EOR) services partner for companies seeking to expand their global reach while ensuring compliance with local employment laws and regulations.

Discover our EOR benefits

Calculate Your Payroll Taxes in Seconds

Payroll tax calculator for employers in Iceland

If you struggle with payroll tax calculations and complying with the relevant regulations, then our payroll tax calculator is for you! It's easy to use and can help you calculate your payroll taxes in seconds. Simply enter your employee information, like salary amount, deductions, and benefits, and our calculator will do the rest.

In addition to calculating your payroll taxes, our calculator can also help you:

  • Understand the different types of payroll taxes
  • Stay up-to-date on the latest changes to payroll tax regulations
  • Avoid penalties for non-compliance
Calculate your payroll taxes
Our author

Amit Kumar 

AVP of Sales

Amit Kumar is the AVP of Sales at TopSource Worldwide, a leading Global Expansion services provider. He has 15 years of experience in the industry, specializing in EOR, payroll, and HR functions. Amit is a true sales professional and a strategic thinker, always eager to deliver innovative and customised solutions to meet the diverse needs of his clients. He is passionate about building long-term relationships and exceeding expectations.

Published Feb 2, 2022

Updated Apr 15, 2024

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Reviewed by:

Safwan Banedar

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Fact checked by:

Safwan Banedar

Payroll FAQ

Frequently Asked Questions about Icelandic payroll services

What is payroll?

Payroll is the process of managing employee compensation, including salaries, taxes, and benefits. Employers calculate and distribute payments, ensuring compliance with tax regulations and deductions. It's a crucial aspect of workforce management and financial accountability.

How do payroll outsourcing services work?

Payroll outsourcing involves hiring a third-party service to handle all aspects of payroll management. The provider calculates salaries, taxes, and benefits, ensuring compliance. This allows businesses to focus on core activities while benefitting from expertise and efficiency in payroll processing.

How do I ensure payroll legislation compliance in Iceland?

Comply with the Collective Agreements Act, adhere to the Employment Contracts Act, and ensure proper reporting to the Directorate of Internal Revenue.

How much do payroll services cost?

Payroll service costs vary based on company size, services needed, and providers. On average, fees range from $20 to $200 per month, per employee. Additional costs may include setup fees and extra services like tax filing. Custom quotes are often provided based on specific business requirements.

How are payroll taxes calculated in Iceland?

Payroll taxes in Iceland involve social security contributions and income tax. Contributions are based on earnings, shared between employers and employees.

What are the advantages of outsourcing payroll processes?

Outsourcing payroll brings efficiency, accuracy, and compliance. It reduces the burden on internal resources, ensures timely tax filing, and leverages expert knowledge. This allows businesses to focus on core operations, enhance data security, and often results in cost savings compared to in-house processing.

Are your payroll and EOR services offered in Iceland?

Yes! TopSource Worldwide offers payroll and EOR outsourcing services for Iceland. We have comprehensive global payroll coverage that includes entities set up in almost every corner of the world, as well as a trusted network of in-country partners to supplement our global payroll and EOR offering.

Let's get started

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