Tired of how long it takes to do your payroll with Excel? Discover how some smart Kenyans have made their payroll routine so much quicker and easier
What’s your biggest hassle in doing your monthly payroll?
- Is it the calculations?
- Or the many different reports you need to churn out?
Whichever of these two related tasks bothers you most, I have good news for you, both will vanish using Nifty Payroll software.
- The calculations are done behind the scenes (hiding away all the complex formulas).
- Every report you need can be opened with a single click from one long payroll report list (all calculations done, properly formatted, ready to print or email).
Just to make sure we’re talking about the same thing, here is what I mean by the calculations and the reports …
There are only really three main calculations you need to do – PAYE, NHIF, NSSF. And they’re fairly simple. (If they were complicated how would the government expect people to comply?)
PAYE and NHIF amounts are both computed from tables provided by KRA and NHIF respectively.
They work on the same basic principle:
A table of salary amounts is provided and the amount to be deducted for a salary is indicated in that table. The graduated amounts are called brackets. For example the current PAYE brackets are as follows:
- 0 Kshs – 10,165 (Tax for this bracket (10%) – 1,016)
- 10,165 – 19,741 (Tax for this bracket (15%) – 1,436)
- 19,741 – 29,317 (Tax for this bracket (20%) – 1,915)
- 29,317 – 38,893 (Tax for this bracket (25%) – 2,394)
- 38,893 and above (Tax for this bracket – 30%)
NHIF is straight forward, pick the amount to be deducted for the bracket where your salary falls.
PAYE is a little more complicated. You don’t just pick the amount from your bracket, you compute a fraction of the amount for your bracket depending on how much above the minimum your salary is. Then, you also add the amounts from the previous brackets to compute your total deductible PAYE.
It is a bit complicated, but once you have a working formula, it’s simplified a lot.
NSSF is simple, one universal compulsory figure for everybody. There’s the matter of voluntary NSSF contributions, but that’s also a single amount with no complicated brackets like for the other two.
So those are the main statutory (government-enforced) calculations.
The Problem With Reports
In my opinion, the many reports you need to create from one basic set of payroll data is the real hassle of doing a payroll.
If everybody was happy with one simple, big report you would never need a specialized payroll software …
… but these guys want the information formatted like this, those guys only want to see this bit of information, the other chaps over there don’t want so and so to see this and this column, and on, and on, and on, ad nausea.
So you go through the tedium of creating every single report you need, which is bad enough as it is until this happens …
… after you’re done and have all your beautiful, shiny reports done, some amounts need to be changed! To the dustbin with all of them, you have to start building all of them up again!
A total nightmare! There are far better ways for us to spend our time than building spreadsheets over and over!
So here are a few of the different reports you’ve got to create every month.
- The NHIF guys want you to do returns a certain way
- NSSF usually immitate NHIF
- PAYE (KRA) now needs you to format your information for uploading to the online system
But the government isn’t the only one who needs reports
- The boss needs to see a summary schedule
- The Pension people need their report
- Of course let’s not forget the payslip every employee must have
- The SACCO guys are waiting for theirs
- The accountants need to post their journals
All of these peoples needs is what makes a payroll such a complicated thing. Simple calculations, many reports in many different formats.
Take The Pain Away
You really don’t need to go through all that hassle every month, here’s one solution to the problem – Nifty Payroll
You can try it for free with no obligation to buy after.
The Free Trial comes with instructions on how to use the software starting with a Quick Start Guide that shows you how to get up and running from keying in your employees to getting all your reports.
Thereafter you’ll get emails showing you the details of how to do the most common payroll tasks
I think it’s the best way to evaluate if Nifty Payroll takes your hassle away in a way you like. Go ahead now and put in your information in the form below to immediately get the Free Trial.