Payroll Services in Malta

Updated on Wednesday 29th May 2019

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Taxation is a very important part of running a business in Malta, however, accountants do not deal only with the aspects related to the corporate tax. An important component in a Maltese company is represented by the employees, case in which separate taxes must be considered. These are grouped under the payroll part of the accounting in the firm.

Payroll is very important and is usually handled by the accounting or human resources department in a Maltese company. With a vast knowledge of the tax legislation, including that of taxes and contributions paid on salaries, our accountants in Malta can handle this aspect in your company.

We offer specialized payroll services in Malta, which is why we invite you to further discover what our accounting firm can do for you.

Payroll and the Employment Law in Malta

There is a very strong connection between the Employment Law and the payroll services a business owner can request in Malta. This is because the law provides for rights and duties of both employers and employees, one of the most important ones being related to the remuneration of the workers for the job or position they fulfill in the company.

It is important to know that for taxation reasons, both the employer and the employee must register for social security contributions purposes, which is part of the payroll in Malta. If the registration for taxation and social security contributions co of the employees and employer can be completed by the HR department, the payroll is best to be outsourced to accounting firms in Malta.

With years of experience in taxation, our Maltese tax advisors can help you handle the payroll in your company through specialized services.

The taxes paid under payroll in Malta

Those who need payroll services must take notice of the following requirements when it comes to the income and withholding taxes to be paid in Malta. These are:
  • the personal income tax which is imposed on the income generated by the employee and which is levied at progressive rates;
  • the social security withholding tax which is levied at source from the employee’s salary;
  • the social security withholding tax which is levied on the Maltese company acting as an employer;
  • the benefits employees are entitled to can also be subject to certain taxes which need to be part of the payroll;
  • the taxes imposed on incomes generated by the employee during work, such as overtime.

Business owners should know that the personal income tax levied on employees must be calculated based on their marital status, which is why it is best to solicit payroll services offered by accountants in Malta.

We can also help those who need other types of services, such as audits for their companies. Our auditors in Malta can help them in this regard.

What are the main payroll services offered by our accountants in Malta?

With years of experience behind and always up to date with the latest tax and employment laws, our accounting firm in Malta can handle any request from small, medium and large companies, including the payroll.

Our payroll services in Malta include, but are not limited to:
  1. assisting companies in registering themselves and their employees for social security contributions;
  2. preparation of all the accounting documents required by the Inland Revenue Department;
  3. generation of the payroll and payslips on a monthly basis and filing of the forms related to payroll;
  4. filing the F5 form which is related to the monthly income, deductions, allowances, and bonuses of employees;
  5. filing the FS7 and FS3s forms which refer to the annual gross salaries of employees, respectively the annual income tax deductions and contributions;
  6. maintenance of annual leave records and termination of employment (where applicable).

As mentioned above, the registration for employment is mandatory and Maltese companies need to obtain an employer number in order to hire employees and pay the taxes related to employment. As part of our payroll services in Malta, this will be the first step for the correct setup of the payroll.

Why choose our accounting firm in Malta?

Payroll is an important part of the management of a Maltese company, however, it is also a complicated one. Often changes in the legislation, many documents to prepare, file with the authorities and keep track of can be problematic for the staff of the company, which is why offer you complete payroll solutions. Apart from working with accountants authorized by the CPA in Malta, we will make sure all payroll documents reach you and the tax authorities in time, in order to avoid misunderstandings and penalties.

For complete information on our payroll services in Malta, please contact us.