Tips and Tricks
According to Labor laws Section 19 (1) of the employment act, an employer is allowed by law to deduct statutory deductions in Kenya from employees’ salaries.
According to Labor laws Section 19 (1) of the employment act, an employer is allowed by law to deduct statutory deductions in Kenya from employees’ salaries. Any of this amount contributing to any fund or scheme approving by the commissioner of labor to which the employee is agreeing to contribute.
PAYE is one of the mandatory statutory deductions in Kenya. However, the amount to be deducting is as a result coming from the monthly income of an employee.As an employer, requiring to be submitting your PAYE returns online via iTax and most importantly on time. As late payments attract a penalty of KES 10,000 charged per year to the employer.Above all, investing your time in a free PAYE calculator will be assisting you in the calculation of PAYE.
Similarly, NHIF (National Hospital Insurance Fund) and NSSF (National Social Security Fund) are mandatory statutory deductions. That an employer keeps collecting and remitting to the relevant statutory bodies on behalf of an employee. Both statutory deductions in Kenya have ratings that are observing calculations.
Under the Higher Education Loans Board (HELB) Act 1995, the Higher Education Loans Board is another statutory deduction in Kenya for students who are taking loans while in college. A loanee is given a grace period of one year to start repaying the loan.Under the employers’ obligation, the Act demands that as an employer one should be adhering to the law by:
The ACT clearly states that any employer who is failing to comply with the provisions of subsection (4) on statutory deductions in Kenya, will be committing an offense.On conviction he or she will be liable to a fine not exceeding one hundred thousand shillings or to imprisonment for a term not exceeding two years, or to both.On this note, the National Social Security Fund (NSSF) published regulations that have set hefty fines for employers who are failing to comply with any of its many provisions, including late remission of statutory contributions and issuance of bounced cheques.
A P9 is a form issuing to the employee by employers containing total compensation one is receiving in a year including the following:
The P9 form facilitates the filing of individual returns. Also, as an employer, you are obligated to providing your employees with the form. On the other hand, you can easily be downloading the form online via iTax at https://itax.kra.go.ke.
6. Upload the income tax resident individual excel form and submit for processing. 7. After submitting you can easily print a KRA e-return Acknowledgement Receipt.
Firstly, a tax return is a document filed with a taxing authority that is reporting income, expenses, and other relevant financial information.Secondly, there are various tax returns that individuals and organizations are supposed to be filing in Kenya.Before filing any return, there are a few things that one needs including:
To sum up, with the introduction of iTax, taxpayers can file tax returns as long as they have the credentials needed that is, the KRA PIN and password. Early filing of returns helps you avoid the late penalty of up to Ksh. 20,000 for late filing. Read more on Easy steps on How to get a P9 form in Kenya or Benefits of electronic payslips and how to get them NOW!
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