How to prepare payroll in Kenya

Payroll processing is a vital element for every business operation today. It is often complex and
can turn into a nightmare if not done correctly.

When it comes to processing payroll, businesses should invest in payroll software to reduce the
time spent by human resource managers preparing payroll. It is important to look for software
that meets your business requirements.

Tips to make payroll processing efficient

Here are seven ways you can start using today to streamline your payroll.

1. Source for advanced payroll software

To run payroll, businesses should go for software that is up to date with tax laws
(Graduated scale rates applicable in Kenya) to make the process of remitting the
statutory easier.

2. Having employee details

This information includes employee full name, Kenyan national ID, Alien ID or passport,
occupation and basic salary. Input and store this information in the payroll software of
your choice. This helps the company to maintain its employee’s database.

3. Check employee records

This is done to verify the number of active employees and those who are inactive. This is
to avoid instances of paying ghost employees who are not part of the company.

4. Take note of the payroll data

The payroll data includes all the allowances that add up to gross pay including
deductions of the employee. The deductions include the statutory remitted by the
employer. It’s also important to review the hours worked by an employee which helps to
determine how much they should be paid. All this combined gives a net pay.

5. Choose a payroll schedule

There are different schedules a business can choose for running their payrolls including
daily, weekly, semi-weekly, and monthly. Once you have chosen a schedule, set
paydays on your calendar when employees will be receiving their salaries. Also,
establish the tax payment date to make on-time payments avoid delayed payments.

6. Indicate the payment method

It’s the wish of every employer for employees to receive their payments on time after
processing the payroll. There are different payment methods which include cash, mobile,
and bank transfer. This method should be indicated to avoid sending money to the
wrong people.

7. Employees payslip

It is important for every employer to issue payslips to employees especially at the end of
the payroll schedule adopted by the employer. This helps employees to keep track of all income
earned and all other deductions.

In conclusion, payroll processing is crucial for every business today. It is advisable for
organizations look for automated payrolls and ensure they seek the services of qualified personnel to make the process easy and save time when processing payment.