Benefits of payroll outsourcing

CH.C. offers a full range of payroll services to companies who have employees in Cyprus and need assistance in the preparation of their monthly payroll, in granting a yellow slip, work permits in Cyprus and many other payroll-related tasks.

Payroll processing is a delicate and complex area. Considering the peculiarities of cross border taxation, tax incentives, tax statuses, fringe benefits and an array of other monthly adjustments, the effort and know-how required to process payroll are on the increase. The consequences of any delays in processing, incorrect calculations and lack of privacy can have significant consequences on both the employer and employee.

Our dedicated team of payroll and tax professionals can put our clients’ minds at rest that their payroll will be processed confidentially and on time, in accordance with the highest quality standards and in full compliance with tax rules. We have ample experience in managing payroll of local and international clients ranging from micro to large entities.

Payroll according to Cyprus law

• 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 an annual leave of 20 days. 
• 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 individuals above the age of 63 for women and 65 for men. 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 an obligation of the employee to pay it, and the employer deducts it at source every month.

Benefits of payroll outsourcing

• Time and cost savings allowing HR and management to focus more on core operations
• Peace of mind that payroll is processed on time should a payroll executive become unexpectedly unavailable
• Enhanced confidentiality around sensitive employee and executive compensation
• Support from an experienced team of payroll, tax and accounting professionals fully abreast with the frequently changing employment and tax legislation
• No training and software license costs.

What are the greatest challenges?

• Keeping up to date with the implementation of new provisions and legislation in the areas of social security, employment and tax rules such as persons returning to work, highly qualified individuals, fringe benefits, part-time work, overseas employment, and lump-sum payments;
• The globalization of employment, cross-border workers and the opening up of the labor markets;
• Complying with internal and external requirements with regard to quality, processes, and checks; and
• Maintaining data confidentiality.

How can we help?

Our professional team includes all payroll activities from the initial data collection and input, right up to the payment of net salaries and all related administrative requirements.

Our team can also provide you with payroll services either in our offices or at your premises.

Our outsourced payroll services include:

• Payroll calculation using our systems. Payroll 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.
• Providing you with payroll reports and payslips.
• Administering leave maintenance.
• Payments to the Income-tax and Social Insurance Authorities.
• 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 tax return (IR1) for each employee and the company’s directors.
• Preparation and submission of the annual payroll form (IR7) for the company to the authorities.

Should you need any further clarification, our professional team can assist you with all the queries regarding the Payroll, Accounting, and Taxation.

In addition, through our solid relationship with our associates we are able to offer additional services, including obtaining work permits, preparing tax returns, contracts and so on.

Best regards,

CHC professional team.