Malta payroll and FSS, what employers actually need to do each month

Malta payroll is not difficult, but the deadlines are tight, and there are five separate forms most employers have to keep on top of. Missing one creates an admin trail that's slow to clean up.

The monthly cycle

• Calculate gross pay, FSS (Final Settlement System) tax and Class 1 social security contributions.
• Issue payslips to employees, these are a legal requirement, not optional.
• File the FS5 and pay FSS tax and SSC by the end of the month following the payroll period.
• Keep records that reconcile to your books, payroll figures should tie to the wages and salaries P&L line every month.

The annual cycle

• FS3, issued to each employee by 15 February for the prior year.
• FS7, annual employer reconciliation, also due by 15 February.
• Reconcile the FS7 to your monthly FS5s before submission. Mismatches trigger queries.

What we see go wrong

• Treating directors' fees as outside payroll. Usually they are not.
• Misclassifying contractors who fail the substance test for self-employment.
• Running payroll in a spreadsheet with no audit trail.