Payroll services are provided to companies which employ staff in Cyprus and abroad. The services are available for Cyprus and International Business Companies.
Cypriot Laws Relating To Payroll Include
- Social Insurance: this is compulsory and covers all persons gainfully employed in Cyprus. Social insurance contributions are made by the employer, the employee and the state.
- Annual Paid Leave: every employee is entitled to 21 days of annual leave.
- Termination of Employment: this law regulates all matters, obligations and rights relating to terminating a staff member’s employment.
- Social Pension: a state pension is available to females above the age of 63 and 65 for males. The paid-out pension is relative to the contributions made.
- Pay as you earn: the Pay as you Earn system (PAYE) applies to all salaries, wages, directors’ emolument, pensions and fringe benefits. PAYE is applicable to all resident and non-resident employees in Cyprus. Tax residents in Cyprus get taxed on their worldwide income while non-resident employees are taxed on the income they generate in Cyprus. It is the employee’s obligation to pay it, and the employer deducts it at source every month.
Standard Payroll Services
- Payroll calculation which can be processed monthly or weekly, based on the client’s preference
- Monthly calculation and payment of social insurance and tax contributions to the authorities
- Preparation and distribution of payslips at the end of each payroll run
- Payment to employees’ personal accounts through online banking transfers.
- Registration of new employees for income tax and social insurance
- Registration of the company for income tax and social insurance
- Obtaining a yellow slip for foreigners if required
- Preparation and distribution of annual payroll forms (IR63) to employees
- Preparation and submission of the annual payroll form (IR7) for the company to the authorities
- Obtaining a tax clearance certificate from the Social Insurance Department for expatriate employees for the purposes of renewal of their work permit.