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In the fast-paced business landscape of Cyprus, where efficiency and compliance are paramount, outsourcing payroll has emerged as a strategic move for many companies. From startups to established enterprises, businesses are increasingly turning to third-party payroll providers to handle their payroll functions. Let’s delve into the top five reasons why companies in Cyprus are outsourcing their payroll.

Expertise and Compliance Assurance

Cyprus’s payroll regulations are intricate and subject to frequent changes. Navigating these regulations demands expertise and continuous monitoring to ensure compliance. Outsourcing payroll to specialised service providers equips businesses with access to professionals who possess in-depth knowledge of local tax laws, social security contributions, and labor regulations. The experts at Fairfax stay abreast of updates and changes, mitigating the risk of non-compliance penalties and ensuring payroll accuracy.

Cost Efficiency and Time Savings

Managing payroll in-house entails significant costs associated with hiring and training staff, investing in payroll software, and dedicating valuable time to administrative tasks. Outsourcing payroll allows companies to streamline operations and reduce overhead costs. By delegating payroll responsibilities to external providers, businesses can redirect resources towards core activities, driving innovation, and growth. Moreover, outsourcing eliminates the need for ongoing software updates and maintenance, further reducing operational expenses.

Enhanced Data Security and Confidentiality

Payroll processing involves handling sensitive employee information, including salaries, tax details, and personal data. Maintaining the confidentiality and security of this information is crucial to safeguarding employee trust and complying with data protection regulations. Fairfax adhere to stringent data security protocols and utilise advanced encryption technologies to protect sensitive data from cyber threats and unauthorized access. By entrusting payroll to our team of professionals, businesses ensure data integrity and minimise the risk of breaches or data loss.

Scalability and Flexibility

Businesses in Cyprus often experience fluctuations in workforce size, especially in sectors such as retail and hospitality. Outsourcing payroll offers scalability and flexibility to adapt to changing staffing requirements without incurring additional administrative burdens. Whether scaling up during peak seasons or downsizing during economic downturns, outsourcing providers can accommodate fluctuations in payroll processing seamlessly. This scalability enables businesses to maintain agility and respond swiftly to market dynamics without compromising payroll efficiency or accuracy.

Focus on Core Business Objectives

Ultimately, outsourcing payroll enables companies to prioritise their core business objectives and strategic initiatives. By offloading payroll responsibilities to Fairfax, business leaders can redirect their attention towards revenue-generating activities, innovation, and client relationships. Outsourcing fosters a more streamlined and agile organisational structure, allowing businesses to allocate resources where they are most needed to drive sustainable growth and competitive advantage in the dynamic Cyprus market.

Outsourcing payroll in Cyprus offers a myriad of benefits, ranging from regulatory compliance and cost efficiency to data security and strategic focus. By partnering with trusted payroll service such as Fairfax, companies can streamline operations, mitigate risks, and unlock new opportunities for success in the ever-evolving business landscape of Cyprus.

For further information speak to our team of specialists regarding your outsourcing of payroll, bookkeeping and accounting needs. Call today on +357 2555 8025 or email accounts@fairfaxyeamen.com

As Fairfax marks its 10th year anniversary, it’s not just a milestone; it’s a testament to the vision, dedication, and unwavering commitment of its founders, Nicoletta Demetriou, Steve Slocombe and the entire Fairfax team. What began as a humble endeavor has blossomed into a leading outsourced payroll provider, shaping the landscape of business solutions in Cyprus.

Steve Slocombe, with his profound understanding of the Cypriot market, and Nicoletta Demetriou, with her extensive expertise in payroll services, joined forces a decade ago with a shared vision – to revolutionise the payroll outsourcing industry in Cyprus. Their journey wasn’t without challenges, but their determination and innovative approach propelled Fairfax to remarkable success.

One of the key factors behind Fairfax’s ascent to prominence is its unwavering commitment to excellence. Nicoletta and Steve instilled a culture of quality and reliability within the company from its inception. The Fairfax team understood that payroll is the lifeblood of any organisation, and entrusted with this responsibility, Fairfax set out to deliver unparalleled accuracy, efficiency, and compliance in every aspect of its services.

The success of Fairfax can also be attributed to its ability to adapt and evolve with the ever-changing business landscape. Nicoletta and Steve recognised early on the importance of staying ahead of technological advancements and regulatory changes. By investing in cutting-edge technology and continuously updating their knowledge base, Fairfax remained at the forefront of innovation, offering clients state-of-the-art solutions tailored to their unique needs.

Furthermore, Nicoletta and Steve’s commitment to building strong relationships with clients and employees alike has been instrumental in Fairfax’s success. They fostered a culture of trust, transparency, and open communication, ensuring that every client interaction is characterised by professionalism and integrity. This client-centric approach not only earned the Fairfax team a loyal clientele but also cemented its reputation as a trusted partner in the business community.

Beyond their professional achievements, the Fairfax team have also made significant contributions to the local community. Through various philanthropic initiatives and corporate social responsibility programs, Fairfax has demonstrated its commitment to making a positive impact beyond the boardroom.

As Fairfax celebrates its 10th year anniversary, Nicoletta and Steve can look back with pride on their journey thus far. What began as a shared vision has blossomed into a legacy of excellence, innovation, and integrity. The Fairfax team’s dedication, perseverance, and entrepreneurial spirit have not only transformed Fairfax into a leading outsourced payroll provider but have also inspired countless others in the business community.

Looking ahead, Nicoletta, Steve, and the entire Fairfax team are poised to build on their past successes and continue to set new benchmarks of excellence in the years to come.

For further information speak to our team of specialists regarding your outsourcing of payroll, bookkeeping and accounting needs. Call today on +357 2555 8025 or email accounts@fairfaxyeamen.com

Fairfax wishes to inform all employers about the changes that will be put in effect in 2024.

SIF Contribution Rates Increase

According to the provisions of the Social Insurance Law of 2010 a rate of social insurance
contribution is applied to the insurable earnings. At the moment, the rate applicable is 8.3%
deducted by the employee and 8.3% contributed by the employer.

However, the contribution rate will be increased by 0.60% from 01/01/2024

There will be no further change to the contribution rates of the other social insurance funds currently in effect.

You may refer to the chart below for your ease of reference:

How Fairfax can help?

Explore the benefits of engaging the Fairfax team to assist you by outsourcing your payroll function.

Contact us on +357 25558025 or accounts@fairfaxyeaman.com for more information.

 

On 17 January 2023, the Commissioner of Taxation informed the public of the commencement of the gradual release of the new platform Tax For All (TFA), which will replace the existing TAXISnet.

The Commissioner states that an important element for the transition to the Tax for All platform is is the User’s email as this will be used for all updates and communication.   All users are therefore requested and encouraged to update their emails as soon as possible via the TAXISnet portal as the correct email is essential for the transition of the User’s account from the old platform to the new TFA platform.

Changing the e-mail address can be done by following the instructions posted on the Tax Department’s website:

www.mof.gov.cy/tax

e-Services → TAXISnet → Information Material → Income Tax-Defense e-Services

e-Services → TAXISnet → Information Material → Value Added Tax Procedure for changing the electronic address in the TAXISnet system e-Services

The first stage of the gradual release concerns Indirect Tax and it will include the following:

• Submission of VAT Returns (Under the current format. New Vat Return format expected to be available towards the end of 2023)
• Submission of VIES Returns
• Payments (will introduce functionality for VAT payments (payment to be performed via JCC))
• Refunds
• Certificates
• VAT statements
• Complaints
• Communication/Q&A

The Team at Fairfax are experts in All payroll and Tax related matters,  if you are looking for an outsourced provider in Cyprus to assit either your company or yourself as an individual for and of the above related Tax isues then contact one of our team today accounts@fairfaxyeaman.com or call + 357 25558025

Outsourcing is a crucial part in international business strategies. While there are many different business processes that can be outsourced, payroll, as a core business process, is a commonly outsourced function, especially for larger organisations. In this blog you will be introduced to different payroll options in Cyprus for companies and the main benefits of payroll outsourcing.

Cyprus Payroll Options for Companies

1. Remote: Businesses may choose to operate under a single payroll system for all employees, by adding employees in Cyprus to your parent company’s payroll. One option for a non-resident company to payroll its employees (local & foreign) in Cyprus is to use a fully outsourced service like a GEO or PEO, which will employ and payroll the staff on their behalf.
2. Internal: Larger companies with a commitment to Cyprus may want to run their own local payroll for all employees, foreign and local. In order to do this, companies will have to complete the incorporation, register the business and then hire the necessary staff. For this approach to be successful, it is necessary to employ an in country human resources professional who has the knowledge on Cypriot payroll and can fulfil all tax, withholding tax and payroll requirements. This is a costly approach, and the company will need a local accounting firm and potentially legal counsel to ensure full compliance with Cypriot employment laws.
3. Local Payroll Administration: In some cases, companies will register their business in Cyprus under one of the forms available but prefer to have another company administer payroll. This occurs through a payroll provider. It is important to note, that the company, as the Employer of Record, still carries full responsibility for compliance with employment, immigration, tax, and payroll regulations, but the payroll calculations, payments and filings can all be outsourced to the payroll provider.
4. Global PEO: Some companies can opt to work with Globalisation Partners through Cyprus payroll outsourcing. This means the global partners will add your companys’ employees to their payroll and handle the compliance as the Employer of Record.

Benefits of Payroll Outsourcing

Saves time

Payroll overall is a time-consuming process that demands a lot of attention to detail. This often comes at a cost of valuable time that could otherwise be spent on more pressing priorities such as building revenue or serving customers. By outsourcing to a reputable provider, owners have more time to focus on what matters most to them.

Prevents mistakes

By hiring professionals that entail expertise in the field of payroll and whose sole responsibility and focus is payroll, companies mitigate the chances of errors occurring, deadlines not being met, omissions arising, or late payroll tax filings happening. For the employer, payroll errors can cause fines and penalties for improperly calculated tax obligations. Generally speaking, business owners are not experts in the complicated world of government tax regulations. Mistakes can lead to audits and penalties – situations no business wants to find themselves in. Therefore, given all the complicated tasks and the potential for mistakes, processing payroll on your own may cost you more in the long run than what you may save initially.

Minimises expenses

Outsourcing payroll prevents your business from having to hire an expert in the field. This reduces overhead costs. As well as this, a company saves money by saving time. Employees need to be paid for their hours of work and by hiring an affordable full-service provider, this can be avoided. Outsourcing payroll can also help quantify visible and hidden costs around payroll management.

Compliance guarantee

Payroll is a complex and risky operation. Evidently, it can be very challenging and difficult if you do not have the expertise in this field. Federal, state, and local payroll tax are becoming more and more detailed which suggests that payroll departments need to pay close attention detail. By lacking the necessary research with regards to payroll legislation, your company risks calculating or filing your payroll taxes incorrectly or late, which can lead to major problems. Outsourced payroll providers are on top of labour code and legislations, making it easier for employers to remain compliant.

Speed

Since payroll providers are solely responsible for this domain, they can dedicate time to resolving any questions or issues employees may have, which can lead to quicker response times. Furthermore, as payroll specialists, they can process even the most complex payrolls at great speed, providing a quick turnaround time on your payroll when required.

Enhanced security of payroll data

Payroll procedures are complex and potentially a risky business operation. Even with trusted partners, there is always the risk of identity theft, embezzlement, or tampering with company records for personal gain. Consequently, outsourcing payroll to a stable and experienced provider can offer a “safe heaven” for your confidential payroll data. As well as this, redundant backups can be created and it goes without say that payroll providers usually invest in state-of-the-art systems for storing and protecting data, simply due to the fact that it is part of the service provided to clients.

To have all of these benefits contact the Fairfax team for more information and to receive an no obligation quote of an outsourced payroll solution specifically for your organisation email; accounts@fairfaxyeaman.com or call +357 25558025,  0ur expert team will be happy to help!