Ukraine Payroll — PDFO, YeSV & Form 4DF Monthly Cycle

Confirm the employer's legal status, EDRPOU code (8-digit entity identifier) or RNOCPP (10-digit individual tax number for FOP), DPS registration details, and whether the entity is on the general tax system or the simplified system (sproschenа systema). Establish whether martial law affects the location of operations, as wartime provisions may modify deadlines and penalties.

Collect the employment contract details for each employee — RNOCPP, residency status, employment type (main workplace or secondary), and any benefits in kind. Compute gross wages including base salary, bonuses, overtime, and non-monetary remuneration. Identify any amounts exempt from PDFO or YeSV (e.g., amounts paid to volunteers, targeted assistance under wartime provisions).

Apply the three mandatory deductions to each employee's gross wage: PDFO at 18% (Podatok na dokhody fizychnykh osib), military levy (viyskovyi zbir) at 1.5%, and employer-side YeSV (Yedynyi sotsialnyi vnesok) at 22% of gross wages (capped at 15 minimum wages = UAH 120,000 per month as of 2025). Check eligibility for the personal social tax credit (PSP) of UAH 1,514 per month (2025 figure) for qualifying low-income employees.

Remit PDFO, military levy, and YeSV to the DPS and the Social Insurance Fund on the prescribed deadlines. PDFO and military levy must be transferred to the budget on the same bank day wages are paid (or the next banking day). YeSV must be paid no later than the 20th of the month following the reporting period. Payments are made via the taxpayer's Electronic Cabinet account using the correct budget classification codes (KBK).

Prepare and electronically file Form 4DF — Podatkovyi rozrakhunok sum dokhidiv, narakhovanyкh (vyplachenykh) na koryst' platnykiv podatkiv — fizychnykh osib (the quarterly payroll tax return, submitted monthly for YeSV purposes). The return is filed via the Electronic Cabinet of Taxpayer (cabinet.tax.gov.ua) by the 20th of the month following the reporting period. Form 4DF combines PDFO, military levy, and YeSV reporting into a single submission.

Reconcile the amounts filed on Form 4DF against the bank remittance receipts and the payroll register. Confirm no discrepancies between amounts declared per employee and aggregate remittances. Retain all payroll records for a minimum of 1,095 days (3 years) from the filing deadline per TCU Article 44.3, and labour records (employment contracts, payroll slips) for the statutory period under labour law (typically 75 years for individual employee records).