Payroll

MannaBooks works out Kenyan payroll each month: PAYE, SHIF, NSSF and the Affordable Housing Levy, posts it to the books, and gives staff their payslips.

Setting up

1. On each employee, open Pay, tick Paid through payroll, and enter the basic salary, how they are paid, and their KRA PIN, NSSF and SHIF numbers.
2. Add regular allowances (house, transport) and deductions (SACCO, welfare, loan). Untick Taxed for tax-free allowances such as genuine per diem.
3. Check Payroll > Statutory rates against the latest KRA, SHA and NSSF notices. When a rate changes, add a new set from the date it applies.

Each month

1. Run payroll for the month: a payslip is made for everyone on payroll. Approved unpaid leave reduces basic pay.
2. Edit a payslip for this month's extras: overtime, bonus, an advance.
3. Approve. The payroll is posted to the books: salaries and the employer's NSSF and Housing Levy as costs; PAYE, SHIF, NSSF, Housing Levy, other deductions and net pay as amounts owed. Staff can now see their payslips.
4. Download the Bank / M-Pesa list to pay salaries, then Record salaries paid.
5. Use the Statutory schedule to file returns, and Record paid for each one when you pay KRA, SHA and NSSF (by the 9th of the next month).

How the tax is worked out

NSSF is 6% of pay up to the upper limit, from both employee and employer. SHIF is 2.75% of gross pay (at least KES 300). The Housing Levy is 1.5% from each. PAYE is charged on pay after NSSF, SHIF and the Housing Levy, in bands from 10% to 35%, less personal relief of KES 2,400. Open a payslip and choose How the tax was worked out to see each step.

An approved payroll can be reopened to correct it until it is paid.