If you are planning to drop an anchor in Cypriot as an entity, one of your first steps will be hiring a staff. To do this you will generally need to set-up an in-country payroll and employment infrastructure. It can be long and routine process taking several months to complete and causing delays.
One way to solve the setting up payroll in Cyprus is to outsource the complication administrative work and ongoing management. At ATCA, we will launch and manage your Cyprus payroll, ensuring full adherence with local legislation.
Payroll is the process by which you make payments to the employees of the company. It includes the determination of how much you need to pay your staff and what needs to be paid for taxes and other deductions.
It is possible to present an approximate visual description of a payroll workflow:
● Collection relevant data from your employee – including personal and tax information
● Calculation net pay – your employee’s gross earnings minus tax, benefit, and social security deductions
● Payment to employee – by the chosen by employee payment method and also issue a payslip detailing salary and deductions
● Transference deductions to the relevant authorities – pay tax, benefit, and social security contributions on behalf of their employees
This scheme may look very easy if you are familiar with the payroll legislation in Cyprus and conduct it on a permanent base for your employees. In addition, you need to know that it takes a lot of time and requires a high accuracy and responsibility.
- Free up time: Outsourcing payroll can save staff's time to performing other major value-added and income-generating activities.
- Decrease costs: The direct costs of payroll processing can be greatly taken the edge off by cooperating with an high-efficient, experienced payroll provider.
- Reassurance in compliance of legislation: Legal entities need to have an in-depth comprehension of various regulations in legal areas such as labor, immigration, tax, social insurance and discrimination in order to avoid infringements there.
- Avoid fines: with outsourcing payroll, you can relief yourself from worrying about fines and penalties.
- Confidentiality and increased security: Data storage and protection measures, multiple server locations and backup facility offered by a trustworthy company-provider prevent any potential possibility of payroll fraud.
- High responsibility: Managing payroll in-house is indeed a complicated process as tangled aspects of payroll, like updating tax tables, submission of reports and making payments need to be taken care of. It distracts attention from important work and at the same increases the chance of occurrence of mistakes.