Israeli Payroll
Outsourcing Services
Accurate, compliant Israeli payroll — without the in-house overhead. We handle the complexity; you focus on your business.
Payroll Outsourcing for Israeli Entities
This service is designed specifically for companies that already hold an Israeli legal entity and need expert, on-the-ground payroll support.
- ✓You have an Israeli company, subsidiary, or registered branch
- ✓You employ or plan to employ Israeli staff
- ✓You want to reduce payroll administration burden
- ✓You need accurate tax filings and statutory reporting
- ✓Your current payroll is error-prone or time-consuming
- ✓You’re transitioning from EOR to your own Israeli entity
Payroll Outsourcing vs. Employer of Record
These are two distinct services. Understanding the difference helps you choose the right solution for your situation.
| Payroll Outsourcing | Employer of Record | |
|---|---|---|
| Israeli entity required | Yes | No |
| Who is the legal employer | Your company | CWS Israel |
| Payroll processed by | CWS Israel | CWS Israel |
| Payments made by | Your entity | CWS Israel |
| Employment liability | Your entity | CWS Israel |
No Israeli entity yet? Our EOR service lets you hire in Israel without one.
What’s Included
End-to-end Israeli payroll — from gross-to-net calculations to year-end reconciliation. Nothing falls through the cracks.
Monthly Payroll Processing
Accurate gross-to-net salary calculations including all deductions, allowances, and net pay. Handles complex structures: commissions, bonuses, multi-rate pay.
Tax Filings & Withholding
Employer income tax (nikui/maskoret), withholding tax compliance, and monthly remittances to the Israeli Tax Authority — filed accurately and on time.
Pension Management
Monthly employer and employee contributions to pension funds, provident funds, and education funds (Keren Hishtalmut). Correct allocation every cycle.
Statutory Reporting
National Insurance (Bituach Leumi) monthly reports, employer liability filings, and all mandatory returns to Israeli authorities — handled in full.
Digital Payslips
Clearly formatted payslips delivered digitally to each employee each month. Compliant with Israeli payslip requirements, available in Hebrew and English.
Year-End Reconciliation
Annual tax reconciliation including Tofes 106 (annual earnings certificate) preparation for all employees. Clean year-end reporting for your finance team.
Israel-Only. Human-First. Compliance-Driven.
We specialise exclusively in Israel. No global templates, no generic payroll engines. Just deep local expertise and genuine service.
Built for Israel. Nothing else.
Israel has unique payroll complexity — pension schemes, Bituach Leumi, recuperation pay, education funds. Our team works exclusively with Israeli labour law and tax authorities.
Human support, not ticketing systems
You speak to real payroll professionals who understand your business and employees. We guarantee a 24-hour human response — not an auto-reply, not a support portal.
Compliance-first delivery
Israeli payroll is heavily regulated and closely monitored. Compliance isn’t an add-on — it’s the foundation. PwC-verified 100% compliance since 2014.
People-first approach
Payroll errors hurt real people. We deliberately run our payroll team below maximum capacity to reduce mistakes, enable proper reviews, and keep quality consistently high.
How It Works
From onboarding to monthly delivery — a simple, repeatable process that keeps payroll running smoothly.
Discovery & Onboarding
We review your Israeli entity, collect employee data, bank details, current pay structures, and compliance requirements. We identify any existing issues and agree on a go-live date — typically within 2–4 weeks.
First Payroll Run
We configure your payroll, run calculations, and prepare a full payroll summary for your review. Where required, we run a parallel payroll alongside your existing system to verify accuracy before go-live.
You Approve & Transfer Funds
Once you approve the payroll, your Israeli entity transfers the net salary amounts to employees and the statutory amounts to relevant authorities. We provide precise payment instructions and timing.
Statutory Filings
We handle all monthly statutory submissions — income tax, National Insurance, pension contributions, and any other required filings — with official Israeli authorities on your behalf.
Monthly Reporting & Support
Gross-to-Net report, Payroll Summary, Variance Analysis, and General Ledger (GL) file delivered to your finance team. Plus ongoing support for any payroll queries, new hires, leavers, or changes.
Simple, Predictable Fees
Our pricing is straightforward and aligned with the actual service delivered. No hidden charges. No bundled services you don’t need.
What you pay for
A tailored quote is provided after a short discovery call. Pricing depends on employee count, salary complexity, and reporting requirements.
Get a QuoteNo entity? No problem.
If you don’t yet have an Israeli legal entity, our Employer of Record service lets you hire immediately — CWS Israel becomes the legal employer.
Frequently Asked Questions
Common questions about our Israeli payroll outsourcing service.
- What’s the difference between payroll outsourcing and Employer of Record (EOR)?▼With payroll outsourcing, your Israeli entity remains the legal employer — CWS Israel handles payroll calculations, filings, and reporting on your behalf. All payments are made by your company. With EOR, CWS Israel is the legal employer — you don’t need an Israeli entity at all.
- Do you work with all Israeli payroll systems (Priority, SAP, etc.)?▼Yes. Our team works with the major Israeli payroll platforms including Priority (Tadiran/Kademi), SAP Payroll, and others. We can also work independently of your existing system and provide GL export files compatible with your accounting platform.
- How quickly can you take over our payroll?▼Typical implementation takes 2–4 weeks from signed agreement to first payroll run. For larger or more complex setups, we may run a parallel payroll for one cycle to ensure accuracy before full cutover. We design the transition with zero disruption to your employees’ pay dates.
- What if we have complex salary structures — commissions, bonuses, multi-rate pay?▼Complex salary structures are fully supported. We handle commission calculations, performance bonuses, variable pay components, multiple employment types, and mixed-rate overtime calculations. All pay rules are documented during onboarding.
- Do you handle foreign currency payroll or expatriate employees?▼Yes. We support payroll for foreign experts and expatriate workers in Israel, including B1 visa holders. Salaries denominated in USD or EUR can be processed, with Israeli tax and National Insurance obligations calculated correctly for non-resident employees.
- What’s the minimum number of employees for this service?▼There is no strict minimum. We work with Israeli entities of all sizes — from a single employee up to 100+. For very small teams (1–3 employees), we recommend a discovery call to ensure the service structure and pricing make sense for your situation.
Let’s Take Payroll Off Your Plate
Start with a free discovery call. We’ll assess your current setup and give you a clear proposal within 48 hours.
