Number of Payees
The number of Full-Time and Part-Time payees is reported in both the FS5 and FS7.
A common misconception is that one should report the number of full-timers and part-timers in these sections. However, this is not factual.
The payees section specifies reporting based on the tax type.
Part-Time Payees
Let's start by explaining section B2, part-time payees.
Employees need to fit one of the two requirements to be included in this section:
- part-time employees paying Part-Time (Qualified) tax rate
- part-time employees paying Qualified Sports tax rate
In other words, part-timers who are on other tax rates (e.g. single rate) would not be reported under this section.
There's also an additional exception: if an employee has exceeded the €10,000 part-time qualifying tax, their income will start being reported under Full-Time and Other Payees.
Full-Time and Other Payees
Based on the wording of the FS5, this will particularly aggregate all employees who are paying main or other tax rate. This will include those employees that don't satisfy the part-time payee conditions.
For employees on Qualifying Sports tax rates, their allocation will depend on the Employment Type, as this option is available for both full-time and part-time employees.
Payees Outside of Malta's FSS System
There is one additional exception to the payees and FSS reporting. If an employee is neither paying SSC nor FSS in Malta, they may be completely omitted from the FSS tax forms.
For more information on this, check out: How to Setup Employees that Pay Taxes Abroad