Businesses need a payroll and compliance calendar to ensure that they are keeping up with their payroll obligations and complying with all relevant laws and regulations. A payroll calendar helps businesses to track when they need to run payroll and make sure that all employees are paid on time.
What is Payroll Compliance?
Payroll compliance is the process of ensuring that an organization’s payroll process complies with all applicable laws and regulations. This includes ensuring that employees are paid the correct wages, withholding the correct amount of taxes, and complying with other payroll-related regulations. Payroll compliance is a complex and ever-changing area, and organizations must take care to stay up-to-date on the latest changes. Non-compliance can result in significant penalties, so it is important to take compliance seriously. Companies can also look out for payroll processing companies as an alternate choice for complying with business regulations. Payroll outsourcing in UAE can release the burden on you by considering compliance requirements thoroughly.
What is Payroll Compliance Calendar
A payroll compliance calendar is a schedule that details when various payroll-related tasks need to be completed. This can include things like preparing and filing payroll tax returns, issuing paychecks, and making payroll tax deposits. Having a compliance calendar helps to ensure that all of these tasks are completed on time and helps to avoid any penalties or interest charges that may be incurred for late filing or payment. You can also outsource payroll processing services to avoid any compliance errors.
Importance of Payroll Compliance Calendar for Businesses
A payroll compliance calendar helps businesses stay organized and ensure that they are compliant with all federal, state, and local payroll laws and regulations. By having a payroll compliance calendar, businesses can avoid penalties and fines for non-compliance. Additionally, a payroll compliance calendar can help businesses keep track of deadlines for filing payroll taxes and other required paperwork. Also, the calendar can help businesses to plan for future expenses, such as budgeting for new hires or raises. The calendar includes key dates for filing payroll tax returns and paying payroll taxes, as well as deadlines for other compliance-related activities. This can help businesses avoid penalties and interest charges for late filing or payment of payroll taxes. The calendar can also be used to track employee leave balances, vacation accruals, and other important information.
Read More : How to Setup Payroll in UAE for the First Time
What Can You Add to Your Compliance Calendar?
We can observe a dynamic change and evolution in the business landscape of the UAE that result in regulatory shifts from time to time. Thus, to stay compliant with these regulations, you should be fully aware of the deadlines and variable patterns of deadlines to avoid any penalty. UAE compliance calendar is a kind of handbook that contains fundamental compliances and their deadlines, applicable to firms operating in the United Arab Emirates. It contains a brief description of the particulars, compliance department, and due dates regarding company registration/ deregistration, human resources, economic substance regulations, companies act, ultimate beneficial owner, value added tax, excise tax, country by country reporting, and anti-money laundering regulations.
Let’s see a few examples to get a better idea about what should be added to the compliance calendar;
- For registration of a trade license, you have to refer to a compliance department of economic development once your license is expired.
- You have to comply with the Post Office for P.O Box on 31st December of every year.
- Similarly, for registration of customs, you have to comply with the customs department every year.
- When we look at human resources, for medical insurance you have to visit the insurance authority for compliance every year.
- Every month, you have to acquire a wage protection system as per the requirements of UAE labor law. Also, service benefits will be calculated on the resignation of the employee.
- After 14 days of the supply date, it is required to deliver a tax invoice to the recipient.
- You can go for voluntary disclosure by submitting your request to the federal tax authority. The due date for it is twenty business days from the date on which the registrant is informed of a fallacy in the submitted Value Added Tax return.
- When we look at economic substance regulations we find that you have to submit an economic substance notification within 6 months and an economic substance report within one year at the end of the financial year to the Ministry of Finance.
The list goes on depending on the type of business you are executing in the UAE.
How to Make Payroll Compliance Easier with Payroll Outsourcing in UAE?
Payroll compliance can be a daunting task for any business, but it is especially challenging for businesses in UAE due to the complex web of labor laws and regulations. However, payroll outsourcing in UAE can be a great way to ease the burden of compliance. A reputable payroll outsourcing company such as Payroll Middle East, giving payroll processing services will have a thorough understanding of the UAE labor laws and can help ensure that your business complies. Additionally, they can handle all of the payroll processing and tax filings, freeing up your time to focus on other aspects of your business.
Read More : Importance of a Payroll Processing in UAE for Small Businesses
With a vast experience of 10 years, Jean Rodas is a specialist in managing all aspects of Payroll and HR. Within Payroll, she has comprehensive knowledge in areas such as computation of final settlement, payslips, WPS registration, salary transfers, leave trackers, and end of service benefits among others, which she has successfully carried out for clients from diverse industries.