The four statutory deductions
| Deduction | What it is | How it is worked out |
|---|---|---|
| PAYE | Income tax collected by the employer for KRA | Tax bands on taxable pay, less personal relief |
| NSSF | Pension contribution | A percentage of pensionable pay up to set tier limits, matched by the employer |
| SHIF | Social Health Insurance Fund contribution | 2.75% of gross pay, with a minimum amount |
| Housing levy | Affordable Housing Levy | 1.5% of gross pay, matched by the employer |
These figures are a general guide and not tax advice. NSSF limits in particular have been stepping up year by year, so check the rates in force for the month you are paying.
Where school payrolls go wrong
- Rates that were set once and never updated.
- Allowances treated wrongly for tax.
- Loans and school deductions kept in a separate book.
- Payslips typed by hand, so that a correction means redoing them.
In Shulepoa
Shulepoa payroll works out each deduction for each staff member, holds allowances and other deductions, and produces payslips. Statutory rates are held in settings for each school, so a new rate can be entered and applied from the next payroll.