Payroll Taxes in 2026

First, the HR specialist confirms the position, pay terms, timesheet, holiday, sick leave and bonuses. The accountant determines the basis of each accrual and the applicable rules. For ordinary salary in 2026, the State Tax Service states PIT withholding of 18% and military levy of 5%, while the employer accrues USC at the general rate of 22%, subject to the statutory special rules.

The State Budget Law set the minimum monthly salary for 2026 at UAH 8,647. When planning an employee, the owner takes account of accrued salary, employer USC, paid periods, equipment and HR support. The accountant prepares a calculation for the specific position and schedule so that the budget reflects the full cost of the workplace.

The employment contract or application, order, staffing terms, timesheet and bank details must contain consistent data. Before the employee starts work, the notification and required personnel set are checked. A change in salary, working arrangement or bonus is documented before the relevant payment is calculated. The accountant receives the basis in time and calculates payroll without verbal corrections after the period is closed.

Accrual, Payment and Employer Reporting

The payroll statement shows accruals, withholdings, the amount payable and the employer contribution. Payment instructions are prepared with current budget details and a clear payment purpose. After payment, the bank data, payroll statement and accounting registers are reconciled. The employee may receive a payslip, while management receives a summary by department and variances from the payroll budget.

Legal entities file the Tax Calculation monthly; for FOPs and self-employed persons in 2026, a quarterly format with monthly detail and transitional rules for the updated form applies. The accountant checks the current reporting period, income codes and identifiers, monitors receipts and links the form figures to payroll statements and payments.

An irregular payment is calculated after the accountant receives the supporting personnel document and period information. Holiday pay, compensation, sick pay, financial assistance and payments on termination have different rules for determining the base. The accountant agrees the date and data set in advance so that the employee receives the calculation and the company records taxes and USC correctly.

Payroll files contain personal and bank data, so access is allocated by role. Management sees budgets and totals, HR sees the basis of accruals, and accounting sees the calculation and payments. QES and bank confirmations remain with authorised persons. The archive keeps the personnel basis, payroll statement, payments, report and receipts as one set.

Personnel Budget and Accounting Support

The price depends on the number of employees, schedules, variable pay, sick leave, business trips, non-residents and the frequency of management reports. UBC can handle only payroll calculation and reporting or combine them with HR and accounting support. Before work starts, the accountant agrees the calendar for providing timesheets, the client's responsibilities and the monthly result set.

Payroll calculation is based on staffing, personnel orders, timesheets, bonus terms, sick leave and bank details. The accountant determines the base of each accrual and the amount of withholdings, while the employer receives the full employee cost including USC. Documents are provided before the relevant month is closed.

For each employee, the payroll statement shows accrued salary, PIT, military levy, net pay and employer USC. The timesheet and personnel document form the basis of the calculation. Payment instructions and reporting data are prepared from the same confirmed amounts.

A change in salary, holiday, sick leave, business trip or termination is reflected after the relevant personnel document is received. The accountant determines the period and type of payment, after which the amount is included in the payroll statement. Management sees the effect on the payroll budget for the particular month.

The HR specialist documents hiring, changes of conditions and termination, while the accountant calculates payments and taxes. Timesheet, payroll, payment and reporting dates are set in one calendar. QES and bank confirmations remain with authorised persons.

After payment, the employer receives the payroll statement, payment confirmations, reporting data and a breakdown of the payroll fund. The set is stored together with the personnel grounds for the relevant month. The owner can compare the actual payroll fund with the approved budget.

After the first full month, management compares the planned personnel budget with actual accruals and contributions. New employees, salary changes and irregular payments are reflected in the next month's budget. This makes it possible to plan payroll using the actual team structure.

Questions about a bonus, sick leave or compensation are provided to the accountant together with the personnel document. The calculation is linked to the specific employee and period, and the relevant amount is reflected in the payroll statement and reporting. HR and accounting data therefore remain consistent.

The next month starts with the current staffing, salaries, schedules and absence information. The accountant reflects changes before the payroll statement is prepared. Management can see the employer budget and employee payment date in advance.

Before hiring or changing salaries, the accountant prepares a calculation for each position: gross amount, taxes and contributions, regular supplements, holiday pay and other payments under the selected remuneration system. Management sees the employer's monthly budget and can compare it with department revenue, the project schedule and recruitment plans.

The accountant links the calculation to personnel documents and the payment calendar. After a change in salary, employee status or remuneration components, the accountant receives confirmed grounds before the month closes. The owner therefore plans the payroll fund in advance, while employees receive clear accruals on agreed dates. In 2026, ordinary salary is subject to PIT at 18% and military levy at 5%, while the employer generally accrues USC at 22%. The monthly statement is stored together with the timesheet, personnel grounds, payments and reporting receipts.