The Austrian social security law binds the employer to settle social security matters for employee and employee-like independent contractors. The employer in particular has the duty to register and the obligation to deduct the amounts.
If employees are employed, the businessperson, as employer (defined in Article 35, Section 1 of the Austrian Social Security in Employment Act), is subject to various, and in particular tax and social security, duties. He must deposit the following amounts:
- Social security amounts
- Payroll tax
- Employer contribution and surcharge on employer contribution
- Municipal tax
- Vienna subway fee
- Contributions to the severance pay and pensions insurance company
Before a person begins a job, the employer must register each individual who is employed by him and who is subject to mandatory coverage with the relevant health insurance carrier (if a company registers employees for the first time, it must obtain an employee account number from the appropriate regional health insurance company). Because of the principle of coverage that applies under the social security law, coverage of employees and others insured under the Austrian Social Security Act begins on the day the compensated employment begins, regardless of when the registration takes place.
All wage charges must be calculated each month and deposited by the 15th of the following month. The employer must calculate and pay the amounts. He also indemnifies for the accuracy, completeness, and timeliness of contribution payments.