Payroll Accounting Lithuania
Payroll Accounting in Lithuania – Reliable, Compliant, and Hassle-Free
Managing payroll is one of the most sensitive and time-consuming tasks for any business. In Lithuania, strict compliance with tax laws, social security contributions, and labor regulations makes it essential to have professional payroll accounting in place.
At UAB “AM Law”, we provide comprehensive payroll accounting services in Lithuania for businesses of all sizes. From startups and SMEs to foreign-owned enterprises, our firm ensures that your employees are paid correctly, on time, and in full compliance with Lithuanian labor and tax laws.
Why Professional Payroll Accounting Matters in Lithuania
Lithuania has a well-regulated payroll system governed by local tax laws, Sodra (social insurance), and labor regulations. Even small errors in payroll calculations or missed deadlines can lead to fines, employee dissatisfaction, or reputational damage.
With professional payroll accounting, you gain:
- Full compliance with Lithuanian tax and labor law
- Timely salary payments and accurate payroll documentation
- Proper calculation of social contributions and income tax
- Smooth onboarding and offboarding of employees
- Simplified internal operations and reduced risk
Outsourcing your payroll accounting to AM Law saves time, ensures accuracy, and protects your business from costly mistakes.
Our Payroll Accounting Services in Lithuania
We offer end-to-end payroll solutions that can be customized to suit your company’s size, industry, and structure. Whether you have one employee or one hundred, our team is equipped to manage all aspects of payroll for you.
Payroll Setup and Registration
- Employee registration with Sodra (social insurance system)
- Set-up of employment contracts, salaries, and tax categories
- Registration of non-resident employees and international workers
Monthly Payroll Processing
- Calculation of gross and net wages
- Deductions for income tax, Sodra, and other required contributions
- Generation of digital payslips and reporting files
Sodra and Tax Reporting
- Monthly submission of declarations to Sodra and the State Tax Inspectorate (VMI)
- Accurate tracking of contributions for pensions, health, and maternity leave
- Filing of income tax (GPM) reports on behalf of employees
Additional Payroll-Related Services
Preparation of annual income reports and payroll summaries
Management of sick leave, vacation pay, and bonuses
Calculations for part-time, temporary, or remote workers
Offboarding services, including final settlements and documentation
Who Needs Payroll Accounting in Lithuania?
Payroll accounting is essential for a wide variety of business types operating in Lithuania:
- Small and medium-sized businesses (SMEs)
- Foreign-owned companies with local employees
- Startups and IT firms with flexible employment contracts
- Manufacturing and logistics companies with rotating shifts
- Service providers, retailers, and hospitality businesses
- Freelancers hiring their first assistants or employees
Whether you’re managing a team in Vilnius, Kaunas, or Klaipėda—or operating remotely from abroad—AM Law ensures your payroll is always on point.
Benefits of Choosing AM Law for Payroll Accounting
Experienced and Certified Professionals
Our team includes accountants and legal experts with years of experience in Lithuanian payroll law, tax regulations, and HR compliance.
End-to-End Confidentiality
We treat your company’s payroll data with the highest level of privacy and ensure all personal information is stored and transmitted securely.
Scalable Solutions for Any Size Business
Whether you need payroll services for 1 or 100 employees, our systems are scalable to grow alongside your business.
Personalized Approach
Every business is different. We offer tailored solutions to match your sector, employment model, and internal policies.
Legal and Tax Integration
What sets us apart is our ability to combine payroll accounting with legal and tax expertise. From employment contracts to dispute resolution, our team has you covered.
How Our Payroll Accounting Process Works
We’ve streamlined the payroll process to ensure simplicity, accuracy, and full compliance. Here’s how it works:
Step 1: Initial Consultation
We learn about your business structure, employee count, and payroll needs.
Step 2: Setup and Registration
We handle all necessary registrations with Sodra and tax authorities. Contracts and salary structures are reviewed or prepared.
Step 3: Monthly Payroll Processing
Each month, you provide work hours, bonuses, or sick leave data. We calculate wages, prepare reports, and file declarations.
Step 4: Ongoing Support
We’re here to answer any payroll questions, adjust reports, and help with employee onboarding/offboarding throughout the year.
Payroll Compliance in Lithuania – What You Need to Know
Payroll in Lithuania is governed by several legal and financial authorities. Key aspects include:
- GPM (Income Tax): 20% is typically withheld from employees’ gross salaries.
- Sodra Contributions: Both employer and employee contribute to social security, including health and pension.
- Minimum Wage Compliance: Employers must adhere to state-set minimum wage thresholds.
- Timely Filing: Late submissions to Sodra or VMI can lead to penalties or audits.
- Contractual Regulations: Employment agreements must meet standards set by the Lithuanian Labour Code.
By outsourcing payroll to AM Law, you avoid the complexity of these laws and ensure every detail is handled correctly.
Cloud-Based Payroll Management for Modern Businesses
We use secure, cloud-based payroll systems to make processing and reporting seamless.
- Real-time access to reports and payslips
- Secure exchange of documents and employee data
- Online approval of monthly salary lists
- GDPR-compliant storage of sensitive information
- Optional integration with accounting platforms
Our digital-first approach helps you save time, reduce paperwork, and gain financial clarity at a glance.
Frequently Asked Questions
Q: Do I need to register with Sodra if I hire just one employee?
Yes. Any employer in Lithuania must register with Sodra and file monthly social contribution reports, even for a single employee.
Q: Can you handle payroll for employees working remotely from another country?
Yes. We offer payroll solutions for companies with international teams, including tax advice and employment documentation.
Q: What happens if I file payroll declarations late?
Late filings may result in administrative fines or increased scrutiny from tax authorities. We manage all deadlines to ensure timely compliance.
Q: How do you handle employee sick leave and holidays?
We calculate pay adjustments based on Lithuanian labor law and file all required documentation with Sodra.
Let AM Law Simplify Your Payroll in Lithuania
Payroll doesn’t have to be a source of stress. With AM Law, you gain a reliable partner who understands every aspect of payroll accounting—from tax law and Sodra regulations to data security and reporting accuracy.
Whether you’re just starting to hire or managing a growing team, we’ll make sure every payslip is accurate, every deadline is met, and every regulation is followed.
Citizenship of Lithuania
Citizenship
- Acquisition of citizenship of the Republic of Lithuania by virtue of birth.
- Restoration of citizenship of the Republic of Lithuania.
- Oath of Allegiance to the Republic of Lithuania.
- Naturalisation.
- By way of exception.
- Simplified procedure.
Right to reinstate citizenship of the Republic of Lithuania to persons who had citizenship of the Republic of Lithuania and until 15 June 1940 and their descendants who have not acquired citizenship of the Republic of Lithuania before 2011-04-01.
We could help you to get citizenship in Lithaunia.
For jobseekers:
We are searching employees from Europe who would want to work in Lithaunian companies.
For employers:
We are dealing with recruitment companies all over the world and can suggest a variety of employees.