Close  

Employment taxes


Companies make an important tax contribution as employers. For the purpose of the Paying Taxes data, social security contributions and labour taxes are included, as these can add significantly to the cost and compliance burden for business. Governments need to make it easy to comply with these taxes and contributions.

To the extent that the tax is borne by the employer (e.g. employer social security contributions), then it will be reflected in the Total Tax Rate. It will also impact on the number of hours to comply and the number of tax payments made.

Employment taxes overall account for 34 percent of the Total Tax Rate. They are a significant element of the tax cost for business. Europe continues to be a region where labour taxes are a particular feature.

Time spent on employment taxes can also be significant.

Nigeria: hours to comply with labour taxes