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The outsourcing of companies’ payroll frees up resources and valuable human capital for our clients. Our confidential and customised payroll team caters for all the formalities involved in fulfilling all your business’ payroll needs.
Outsourcing of Payroll
Companies which are engaged in employment activities in Malta, are required to keep full records for each employee, to include amounts paid as salaries, bonuses, allowances, any other additions, together with any deductions required by law relating to income tax and social security contributions (NI) from the date of engagement to the date of termination of employment. It is very important that statutory requirements are strictly adhered to.
CSB Group’s dedicated payroll team assists clients with their payroll requirements where the outsourcing of payroll is required. CSB Group currently provides payroll services to well over 70 companies which operate within the online gaming, financial services, retail, shipping, marketing, consultancy services amongst others. Currently the largest payroll being administered consists of 200 employees. CSB Group’s Payroll Services are further complemented by Tax, Employment Law and HR Consultancy.
Cloud-based Payroll System
Through cloud based payroll systems used in the generation of clients’ payrolls, we are able to provide clients with more value added services both for their employees and their HR-related functions. Employees are provided with access to their own portal to view payslips, FS3s, apply for leave electronically. Leave approval is facilitated and integrated within the payroll system. Once approved by respective managers, it is automatically shown and catered for in employees’ payslips. Therefore no separate leave systems need to be maintained, rather it can be catered for within the same payroll system
Payroll Function Setup
Our team can handle the setting up of the payroll function and the registering of the employees that will be working in Malta. This includes:
- Registering for the PE Number (Employment Number) in Malta
- For non-EU nationals, assistance with work permits is provided.
- For EU and non-EU nationals, assistance with obtaining the Maltese social security number, ID Card/ E-residence number/ Expatriate Number
- Registering employees with the Inland Revenue Department through the submission of the FS4
- Registering employees with Jobsplus by submissions of the engagement forms
CSB Payroll Team maintain leave records for each employee so that employers and employees know exactly the leave entitlement, leave availed of and balances at any point in time. This applies for vacation, sick leave and other types of leave entitlements.
Income Tax Deductions
Deductions relating to income tax are calculated and deducted from the gross salary on a monthly basis, using a system known as the Final Settlement System (FSS).
Tax is computed according to the single, married or parental rates depending on which applies to the particular employee. Part-time rates may also apply if the employee is fully employed elsewhere (subject to certain conditions). Rates can be viewed here.
If an employee spends less than 183 days in Malta, non-resident rates of taxation may need to be applied. In the case of director fees, different rates of taxation might need to apply.
In order to put your mind at rest, CSB Payroll & Tax Teams will advise you on the appropriate tax rates to be used and applied for your employees & officers of the company.
Social Security Contribution Deductions
Deductions relating to Social Security Contributions (“SSC”) are made on a monthly basis. As outlined above, on a monthly basis the employer will need to submit to the Commissioner of Inland Revenue, a return (the FS5) summarising the following:
- Gross Salaries for the Month for all Employees
- Income Tax for the month for all employees
- SSC deducted from the employees’ salaries for the month
- SSC paid by the employer – ie. Employer’s share of SSC for the month
- Maternity fund contributions for the month
This will need to be accompanied by the relative payment for these deductions.
On an annual basis, the FS7 and FS3s are prepared and submitted to the Inland Revenue Department in Malta.
FS7 is an annual declaration for the company’s total amount of salaries, tax, NI and maternity fund contributions for all its employees.
FS3 is an annual declaration for each employee’s annual gross salaries and annual deductions of income tax and NI contributions.
Original of the FS3s will also be sent to the respective employees’ addresses because these will then be required for the compilation of their personal income tax returns.
The deadline for the submission of the FS7 and FS3s is 15th February of the following year.
At CSB Group, we can also assist with the completion of the personal income tax returns for the respective employees which are due by 30th June of the following year.
Assistance is also provided on completion of the following:
Calculation and Payment of the employee’s last salary (including any pro-rate leave entitlements and government bonuses)
Submission of the termination forms at Jobplus
CSB Legal can also assist clients with the legal implications of redundancy, dismissal and termination and the consequent rights and obligations of the respective parties involved to ensure a smooth process is maintained.
CSB Legal can assist in the drafting and preparation of the respective employment agreements / contracts (be they definite or indefinite). Working together, Payroll and Legal can assist clients in terms of specific employment regulations relating to probation, notice periods, leave entitlements (including wage regulation orders) (for all types of leave including vacation leave, sick leave, maternity leave, etc), among other advice.
CSB Group have been our service providers for the last few years and have assisted us in a range of services including accounting, payroll, legal and corporate services. In our experience, CSB has proved to be of great use.