Tax Compliance Tips for Payrol...

Tax compliance is one of the most critical aspects of running payroll in Kenya. Whether you're managing a small team or hundreds of employees, ensuring proper statutory deductions and accurate reporting to government bodies like KRA, SHIF, and NSSF is not optional — it’s the law. In this article, we share practical tax compliance tips and how ZuriHR helps you stay compliant automatically.

1. Always Use the Latest KRA Tax Bands

KRA regularly updates PAYE tax bands, personal relief amounts, and other thresholds. Manual payroll systems often fail to reflect these changes on time, leading to incorrect deductions or non-compliance penalties.

ZuriHR automatically updates:

• Current PAYE rates and tax brackets

• Personal and insurance relief

• Housing levy deductions

This ensures your payroll always complies with the latest KRA tax rules — without requiring manual updates.

2. Factor in All Statutory Deductions

In Kenya, every employer must deduct and remit:

• PAYE to KRA

• NSSF to the National Social Security Fund

• SHIF to the Social Health Insurance Fund

• Housing Levy (if applicable)

ZuriHR calculates and applies these deductions per employee based on salary brackets and government rules. The platform also supports Tier I and II NSSF contributions, ensuring full alignment with the current social security structure.

3. File and Remit Returns On Time

Late filing of tax returns can lead to penalties from KRA and other authorities. ZuriHR helps you stay ahead with:

• Pre-filled KRA PAYE CSV files for iTax upload

• SHIF and NSSF CSV for direct submission

With all payroll data stored digitally and organized per month, you’ll always have the right reports when you need them.

4. Keep Employee Tax Details Updated

A common compliance error is missing or outdated employee tax info — like PIN numbers or incorrect ID numbers. ZuriHR flags incomplete records so you can:

• Update missing KRA PINs

• Correct NSSF/SHIF numbers

5. Audit Your Payroll Regularly

Mistakes can slip through even with automation. Regular payroll audits help verify:

• Correct application of tax bands

• Matching employee IDs to statutory numbers

• Benefits or earnings properly taxed

ZuriHR’s built-in payroll summary reports, payroll reconciliation report and muster roll make it easy to spot inconsistencies. You can export reports department, or time period, ideal for internal reviews or auditor requests.

Conclusion

Tax compliance in payroll doesn’t have to be stressful or manual. With ZuriHR, you can process salaries, calculate statutory deductions, and file returns — all in one place. The platform’s automation, error detection, and compliance tracking save you time and protect your business from costly penalties. Stay compliant, pay accurately, and let ZuriHR do the heavy lifting.