Latvia Payroll — Darba devēja ziņojums, VSAOI & IIN Withholding

Collect the payroll register for the period and classify each worker: standard employee (34.09% VSAOI), pension-age employee (30.02%), worker of a non-registered foreign employer (31.83% combined, paid by worker), or self-employed. Confirm whether any worker holds an algas nodokļa grāmatiņa (wage tax book) registered with this employer, which is required to apply the EUR 510/month non-taxable minimum and per-dependent allowances (EUR 250/month each).

Calculate employer VSAOI (23.59%), employee VSAOI (10.50%), and IIN (personal income tax) for each worker using the flat 25.5% monthly withholding rate. Apply the non-taxable minimum (EUR 510/month for standard employees; EUR 1,000/month for pensioners) and per-dependent allowances before computing the IIN base. Flag any worker whose cumulative annual income is approaching or has exceeded the EUR 105,300 VSAOI cap, where in-year VSAOI continues but solidarity-tax reconciliation will be required at year-end via the GID.

Prepare and submit the monthly Employer's Report (Darba devēja ziņojums) in the VID Electronic Declaration System (EDS at eds.vid.gov.lv) by the 17th of the month following the reporting month. The report includes the Ziņas par darba ņēmējiem (information about employees) section, listing each worker's gross income, employee VSAOI, employer VSAOI, and IIN withheld. Confirm the report is accepted and a confirmation number is received before the deadline.

Remit the combined VSAOI (employer + employee shares) and IIN withheld to VID by the 23rd of the month following the reporting month. Both VSAOI and IIN are paid to a single VID account; the payment reference must identify the period (month/year) and the tax type (VSAOI / IIN) so VID can allocate correctly. Verify the debit on the bank statement (Swedbank / SEB / Citadele / Luminor) to confirm the payment has cleared.

At year-end, identify any worker whose annual income exceeded EUR 105,300. VSAOI was withheld throughout the year at 34.09%; income above the cap is subject to a 25% summary-order solidarity tax (Solidaritātes nodoklis), with the difference between 34.09% and 25% refunded via the annual income declaration (GID). Workers with income above EUR 105,300 must file the GID between 1 March and 1 July of the following year. Also confirm whether any worker owes the additional 3% PIT surtax on income above EUR 200,000, which is also settled via the GID.