Thursday 24 May 2018

PAYE IN KENYA

Every employee in Kenya whether permanently or temporarily employed to a period exceeding one month, is entitled to PAYE (pay as you earn) income tax. The taxation is done to both full time and part time employees with exceptional of those serving for less than a month. The PAYE taxation is managed by the government of Kenya through the Kenya Revenue Authorities or the commonly known as (KRA).
This applies to any kind of payment demanded by the employee from the employees may it be a salary, wedge, commissions and allowances, fees and bonuses. The PAYE taxation is done directly from the employer before the money is given to the employee. Taxpayers in Kenya can get to calculate their taxation rate through tax calculator Kenya service offered by the Pesabazaar.com through their website.
KRA tax calculator  

KRA PAYE calculator is a set program that helps every taxpayer in Kenya to easily calculate their pay as you earn (PAYE) income tax in Kenya. Tax calculator Kenya is set by the Kenya revenue authority to be used by both employer and the employee to understand the statutory contribution that they should be making every year. The KRA calculator Kenya can also help the taxpayers to calculate their Personal Tax Relief (an amount that is deductible from the total PAYE tax). 
The KRA PAYE calculator is accurate since they are maintained and updated as per the changes occurring in the Kenya tax laws. Though this calculator is highly maintained the PESABARAZA.com says they are not liable to any damages caused by the use of this calculation tool.
How it works  

The tax calculator Kenya determines the percentage at which every level of earning is taxed. The pay as you earn (PAYE) income taxation rate varies from different class of earnings. The higher the wedges or the salary earned, the higher the statutory contribution percentage. Mostly they PAYE rate varies from the 10% to 30%. It is set in a way that it favours the employees with the smallest earning. 
It is the duty of every employer to calculate and make the necessary deductions on behalf of the employee and remit the contributions through the KRA Online Portal.