# Domestic payroll localization: employer registration, payroll journals and filings

The first local hire turns a company into an employer, and an employer has obligations that a trading entity does not: registrations with tax and social-security bodies, payroll calculations that follow local rules, payments to the employee and to several authorities, and periodic filings. Payroll is often run outside the ERP, by a local payroll system or provider. The ERP still has to receive a payroll journal that balances, pay the right amounts and reconcile the liabilities to zero.

This guide covers what to set up before the first pay run, how to post and reconcile payroll in the ledger and how to prove each filing happened. It does not give rates, thresholds or deadlines; those come from the authority or a local payroll adviser. For employees working across borders, see [cross-border workers and payroll](https://erplocalization.com/guides/cross-border-workers-payroll-localization/).

## Employer registrations

Before the first pay run, confirm with the authority or a local adviser which registrations apply. Commonly they include tax withholding on wages, social insurance, and sometimes pension, accident insurance, health insurance or labour-ministry registrations. This site records a few verified employer-registration facts; they are examples of what to look for, not a complete list for any country.

*Employer registration / social insurance facts verified on this site (4 countries)*

| Country | What this site records |
|---|---|
| [Chile](https://erplocalization.com/chile/#key-facts) | Employers register employment contracts and telework agreements with the Dirección del Trabajo |
| [Indonesia](https://erplocalization.com/indonesia/#key-facts) | Employers register their workers for employment social security with BPJS Ketenagakerjaan |
| [Taiwan](https://erplocalization.com/taiwan/#key-facts) | Employers enrol workers in Labor Insurance, Employment Insurance and Labor Occupational Accident Insurance with the Bureau of Labor Insurance; occupational accident insurance is compulsory regardless of headcount |
| [Vietnam](https://erplocalization.com/vietnam/#key-facts) | Foreign employees with labour contracts of 12 months or more are covered by compulsory social insurance from 1 Jul 2025 |

For each registration, record the body, the reference number, the date registered, what it covers, the filing and payment calendar and who holds the access credentials.

## Payroll data in the ERP

Decide what crosses from payroll to the ERP:

- **Summary journal.** One balanced entry per pay run and legal entity, by account and cost centre. Usually enough for the ledger.
- **Payment instructions.** Net pay to employees and amounts to each authority, either as a payment file or as payables in the ERP.
- **Cost allocation.** Departments, projects or cost centres for management reporting.

Keep personal data in the payroll system. The ERP rarely needs individual salaries; see [personal data in cloud ERP](https://erplocalization.com/guides/cloud-erp-personal-data-cross-border/).

## Worked example: one monthly pay run

The amounts are illustrative round numbers. The split between employee tax, employee contributions and employer contributions is an example, not any country's rates.

| Item | Amount |
|---|---|
| Gross salaries | 5,000 |
| Income tax withheld from employees | 1,000 |
| Employee social contributions withheld | 500 |
| Net pay to employees | 3,500 |
| Employer social contributions | 1,000 |

*Example entries: payroll journal, payments and remittance (illustrative)*

| Step | Account | Debit | Credit | Note |
|---|---|---:|---:|---|
| Post the payroll journal | Salary expense | 5,000.00 |  |  |
|  | Employer social contributions expense | 1,000.00 |  |  |
|  | Wage tax payable |  | 1,000.00 |  |
|  | Social contributions payable |  | 1,500.00 | 500 employee + 1,000 employer |
|  | Net wages payable |  | 3,500.00 |  |
| Pay employees | Net wages payable | 3,500.00 |  |  |
|  | Bank |  | 3,500.00 |  |
| Pay the authorities | Wage tax payable | 1,000.00 |  |  |
|  | Social contributions payable | 1,500.00 |  |  |
|  | Bank |  | 2,500.00 |  |

After all three steps, every payroll liability is zero. Total employer cost is 6,000, total cash out is 6,000. If a liability account keeps a balance after the authority payments, either the payment differs from the filing or the journal and the filing use different figures.

## Reconcile every month

| Check | Source A | Source B |
|---|---|---|
| Gross pay | Payroll register | Salary expense in the ledger |
| Tax withheld | Payroll register | Tax filing and wage tax payable |
| Contributions | Payroll register | Contribution filings and social contributions payable |
| Net pay | Payroll register | Bank payments to employees |
| Liabilities | Ledger balances after payments | Zero, or listed and explained |

Keep the filed returns, payment confirmations and the reconciliation together for each month.

## Controls

- Changes to employee bank details need a second person.
- Payroll journals are imported, not typed, and are checked for balance before posting.
- The filing calendar is part of the [governance review calendar](https://erplocalization.com/guides/localization-governance-raci/).
- Year-end statements to employees and annual employer returns are on the calendar from the first month.

## Worksheet

Use the [employer registration and payroll reconciliation checklist](#template).

## Worksheet: Employer registration and payroll reconciliation checklist

Copy this worksheet for each case. It records decisions and evidence; it does not determine the tax or legal treatment.
Show the worksheet

Use with the [domestic payroll guide](https://erplocalization.com/guides/domestic-payroll-localization/). Rates and deadlines come from the authority or a local adviser.

### Registrations

| Body | Covers | Reference | Registered on | Filing calendar | Payment calendar | Credential owner | Source |
|---|---|---|---|---|---|---|---|

### Before the first pay run

- ☐ All registrations confirmed
- ☐ Payroll system or provider chosen; data flow to the ERP agreed
- ☐ Payroll accounts and cost centres created
- ☐ Journal import tested; journal balances
- ☐ Payment route for employees and authorities tested
- ☐ Personal data stays in payroll

### Monthly reconciliation

| Check | Payroll register | Ledger or filing | Difference | Owner |
|---|---|---|---|---|
| Gross pay |  |  |  |  |
| Tax withheld |  |  |  |  |
| Contributions |  |  |  |  |
| Net pay |  |  |  |  |
| Liabilities after payment |  |  |  |  |

### Year end

- ☐ Employee statements issued
- ☐ Annual employer returns filed

**Sources checked:** 27 October 2026. Employer-registration facts come from the verified rows on this site, each with its official source. No rates, thresholds or deadlines are stated.

## Related guides and data

- [Cross-border workers: separate employment, social insurance and payroll decisions](https://erplocalization.com/guides/cross-border-workers-payroll-localization/)
- [Assess cloud ERP personal data across hosting, support and legal entities](https://erplocalization.com/guides/cloud-erp-personal-data-cross-border/)
- [Local banking and payment formats: inventory, set-up and reconciliation](https://erplocalization.com/guides/local-banking-payment-formats/)

**Data on this site:** [Country pages with sourced key facts](https://erplocalization.com/countries/)

In [Payroll and data](https://erplocalization.com/guides/#payroll-data): previous [Assess cloud ERP personal data across hosting, support and legal entities](https://erplocalization.com/guides/cloud-erp-personal-data-cross-border/) · [Guides by task](https://erplocalization.com/guides/#by-task) · [All guides](https://erplocalization.com/guides/)

Vendor documentation is cited only as an example of the level of evidence to ask for; it is not a recommendation or a ranking. This guide is general information, not tax or legal advice. Checked 2026-10-27.

Related: [Glossary](https://erplocalization.com/glossary/) – abbreviations and terms used in these guides (SAF-T, Peppol, CTC, EN 16931, IFRS and more).

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