Event report
Webinar with Taxwise Africa Consulting LLP
Mastering Payroll Taxes & Employment Regulations!
In our webinar session in partnership with Taxwise Africa Consulting LLP, we explored the latest changes in payroll taxation and what they mean for your business. Our expert speakers, Sharon B. and Moureen Nyatichi M., provided a deep dive into key updates introduced under the Tax Law (Amendment) Act 2024 and how they impact payroll compliance, employer obligations, and employee benefits.
Key Takeaways from the Webinar include:
PAYE Adjustments – New tax bands mean recalculating deductions correctly to prevent compliance risks. Employers who fail to deduct or remit PAYE face a penalty of 25% of the unpaid tax or KES 10,000 (whichever is higher). Timely remittance is crucial!
Residency & Tax Obligations – Residents are taxed on worldwide income, while non-residents are taxed only on Kenya-based earnings. Misclassifying employees or consultants could lead to unexpected tax liabilities.
SHIF Contributions – Employers must remit 2.75% of gross salary by the 9th of each month or face a 2% penalty. Employees must clear outstanding payments before accessing benefits under SHIF.
Affordable Housing Levy (AHL) – Employers and employees each contribute 1.5% of gross salary. A 3% penalty applies for late payments.
Post-Retirement Medical Fund Relief – A tax-deductible benefit (up to KES 15,000 per month) that businesses can leverage to enhance employee packages while reducing taxable income.
Employment Benefits & Tax Optimization – Beyond compliance, businesses can reduce tax burdens by properly structuring allowances, per diems, and deductions while maximizing reliefs like pension and mortgage contributions.
The discussion was insightful, with attendees gaining valuable guidance on how to navigate payroll taxes efficiently. A huge thank you to Taxwise Africa Consulting LLP for their expertise and to all participants for their engaging contributions!
