What employers need to know about tax obligation

PAYE is a method of collecting tax from individuals in gainful employment. According to the Kenya Revenue Authority, gain or profits include wages, casual wages, salary, leave pay, sick pay, payment in lieu of leave, fees, commission, bonus, gratuity or subsistence, traveling, entertainment or other allowances received in respect of employment or service rendered.

All employers are required to register for this obligation. Deductions on salaries and wages are remitted to Kenya Revenue Authority on or before 9th of the month that follows.