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Payroll & ESOP

Israeli payroll, equity compensation and employer compliance

Israeli payroll is complex — mandatory pension, study fund, National Insurance, disability, health tax, severance, expat regimes and equity plans. We handle it all so you can focus on your team.

  • Monthly Israeli payslips (tlush)
  • Bituach Leumi & income tax filings
  • Section 102 (Equity & ESOP Incentive Plans) — capital / income track
  • Form 106 (Annual Tax Statement), Form 161 (severance)
  • Pension & study fund compliance
  • Payroll for foreign companies (EOR alternative)
Israeli payslips and salary calculations on a desk

Payroll for Israeli & foreign employers

Whether you are an Israeli company hiring locally or a foreign company setting up first employees in Israel, we register the entity, arrange pension/insurance providers and run monthly payroll end-to-end.

  • Registration with Tax Authority, Bituach Leumi and pension funds
  • Monthly gross-to-net calculations and payslips
  • Employer filings (Form 102, annual Form 126)
  • Employee onboarding and offboarding
  • Support with expat and relocation tax regimes

Section 102 ESOP plans

We help startups design and operate Section 102 stock option plans in the capital gains track (25% preferential tax) — including trustee coordination, Tax Authority filings, exercise mechanics and employee guidance at sale/exit events.

Termination & severance

We prepare Form 161, coordinate with the pension provider on severance release, help split taxable vs. tax-deferred portions, and support the employee through their filing.

FAQ

+Can you run payroll for a foreign company with employees in Israel?

Yes. We register the entity as an Israeli employer, set up payroll, National Insurance (Bituach Leumi), income tax and pension arrangements, and produce compliant Israeli payslips (tlush).

+Do you handle Section 102 ESOP plans?

Yes — we work with trustees, coordinate Tax Authority approvals, produce Form 106 (Annual Tax Statement), and support employees through exercise and sale under Section 102 (Equity & ESOP Incentive Plans).

+What about severance (Form 161) and terminations?

We prepare Form 161, coordinate with pension providers, calculate tax-optimal severance splits and support the departing employee through the process.

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