The Tax Act was amended in April 2020 and introduced new rates for PAYE, Personal Relief, and Corporate Tax (Coronavirus tax reductions). The new tax rates are effective from April 2020.
Do these three (3) steps to update your PayslipMaker installation for the new tax rates:
1. Update Your PayslipMaker Installation
You must update your PC with the latest version of PayslipMaker to get the new tax table. Please watch this YouTube video on how to update …
Update Your PayslipMaker: YouTube video on how to install latest PayslipMaker version (click here)
2. Update Rates In PayslipMaker – PAYE, Personal Relief, and Corporate Tax Rates
Click Rates on the Home Page to open the Rates Table.
2a. Manually overwrite the rate for Personal Relief to 2,400 (from 1,408)
2b. Manually overwrite the rate for Corporate Tax to 0.25 (from 0.30)
2c. Manually overwrite the TableID for PAYE to 2020 (from 2018)
Close the Rates form and go to step 3.
Video demonstration on updating the Rates: YouTube video on how to change applicable tax rates in April 2020 (click here)
3. Process Your April Payroll
If you had already Processed April, you will need to “Process Payslips” again so the new rates are used for the tax computation.
Check that tax has changed: Open a payslip for last month and this month and check that the PAYE amount is different. This month should be lower. And confirm tax relief is Kshs.2,400 (NOT 1,408).