Payroll Tax Withholding Services

PR12118320 – Payroll Tax Withholding Services

The U.S. Embassy in Budapest, Hungary requires for its Locally Employed Staff monthly services for personal income tax, social security, and pension contribution calculation and deduction compatible with Hungarian Tax Legislation and the National Tax Authority (NAV) requirements. The contract will be for a period of one year, with a maximum of two one-year optional periods of performance, and will be expected to commence no later than January 1, 2024.

Examples of the services the provider will be expected to deliver:

• Standard bi-weekly and monthly payroll services (currently done in NEXON program)
• Management and processing of employee information and documents related to payroll:
• Process new employee data. Record the content of statutory certificates, declarations, and forms.  Process the basic payroll related data.
• Process leavers’ data in the payroll system.  Provide statutory leavers’ documents.
• Process employee fixed data changes.
• Manage employee declarations.  Record the documents data (e.g. tax allowance declarations,) provided by the client in the payroll system.
• Process regular payments and calculate mandatory deductions from employee’s wages on a bi-weekly basis for Embassy employees and on monthly basis for ORE employees.
• Process non-regular payments, e.g. premium and overtime payments, cash award, bonus and calculate mandatory tax and social security deductions.
• Provide respective payroll and deduction calculation data for the payroll center in the U.S. to process in the current pay period.
• Review tax deductions for their accuracy processed by the payroll center in the U.S. in previous pay periods.  
• Manage social security data: Apply statutory regulations regarding health insurance allowances.  Assess eligibility and process allowances (sick pay, work accident sick pay, maternity pay, etc.), monitor eligibility period, take statutory records, prepare statutory reports and statistics as per the statutory frequency, provide the consolidated report on processed allowances for the employer to claim reimbursement from the authority.
• Other Standard Services detailed in the Scope of Work
• Reporting  

All firms that respond to this solicitation must be technically qualified and financially responsible to perform such a service. At a minimum, each offeror must meet the following requirements to submit a proposal:

• Have an established business with a permanent address and telephone listing in Hungary;
• Be able to understand written and spoken English;
• Have the necessary personnel, equipment, and financial resources available to perform the work, including trained and qualified payroll technicians;
• Have all licenses and permits required by local law;
• Have liability insurance;
• Have no adverse criminal record;
• Have no political or business affiliation which could be considered contrary to the interest of the United States of America;
• Be registered or ready to register in the SAM database at www.sam.gov