TMF Group Cyprus offers 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.
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 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.
EU Directives which govern Payroll Services:
- Working Time Directive (WTD)
- Data Protection Directive
- Acquired Rights Directive
TMF Group Cyprus is well-versed in both Cypriot legislation and the relevant EU Directives and will help you maintain compliance with these regulations.
Standard payroll services
- Payroll calculation using the system “Cycom”. 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
- Payment to employees’ personal accounts through online banking transfers. This requires access to the client’s online banking. Alternatively employee salaries can be paid from the TMF Group account after receipt of funds
- 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