Here is how to update PayslipMaker to effect the changes of Finance Act 2023.
(Click on this link to see the changes you are effecting: Finance Act 2023 Effects on Payroll)
Video Demonstration:
Video (click on link): Finance Act 2023 – How to Apply Changes to PayslipMaker for July 2023
The Three Steps:
1. Update Your PayslipMaker:
You need to update your PayslipMaker so that you get the new rates and the new calculations and reports.
Video (click on link): How To Update PayslipMaker
Here is the link to get the installer for the latest version of PayslipMaker: Updater Download Page
Note on Version Numbers:
You will see the version number on the Home Page in red.
The version number is the last date I made a major change on the program (e.g. Version Number 2023.08.04_1 means 4th August 2023).
If your version number is a date after the one shown in a video, it means it is an even more recent version than the one when the video was made. That is okay, more recent versions include all previous updates.
The number at the end (e.g. “_1”) indicates how many minor changes I have made since the last major change. The higher the number, the more recent the version.
The latest version includes all changes of previous versions.
Update your PayslipMaker if you’re not sure you have the latest.
2. Changes To Make After Updating PayslipMaker:
You need to effect changes in two places in PayslipMaker:
- Rates, and
- Calc Rules
2.a. Change Rates:
Open Rates from the Home Page and go to July 2023. Effect the followning changes manually:
- Change HF TableID to 2023 (Click here if you don’t see HF on your Rates Form)
- Change PAYE TableID to 2023
- Change CT Rate from 0.3 to 0.35 (this is not shown on the YouTube video above but you need to do it, even if you don’t have Secondary Employees. You might need it in future)
2.b. Change Calc Rules:
Open Calc Rules from the Home Page and go to July 2023. Tick HF for all Employees so that they get HF computed. If you have employees for whom HF does not apply, e.g. Secondary Employees, leave HF unticked.
3. After Making The Changes, Check for HF and New PAYE:
3.a. HF Calculations: Go to Payslips in July 2023 and Process Payslips again. Open the Payroll Summary and check if you see figures in the House Levy column. That amount should be 1.5% of the sum of the Gross Pay column and Benefits column.
3.b. HF Reports: There are two new reports in the Payroll Reports List: Housing Fund – Amounts and Housing Fund – Return. The Amounts report shows the 1.5% amounts. The Return report has the Basic Pay and Gross Pay required for uploading to the KRA P10 return.
3.c. HF Return: Export the return to Excel, delete the Pay Year and Pay Month, delete the top row with headings, save as CSV. It is ready to import into the KRA P10. (See KRA Public Notice on HF).
HF Return Steps Video: How to do your Housing Levy Return from Payslipmaker to iTax
3.d. PAYE: For those with salaries above Kshs.500,000 you should see an increase in the PAYE. Also for Secondary Employees who are charged the highest band rate (CT Rate on Rates).