Employers act as agents of the tax authority. Deducting and failing to remit is treated far more seriously than an underpayment of your own company tax, so this is the first area we regularise for new clients.
Register before your first payroll run
Register with the internal revenue service of the state where your employees reside, obtain the employer identification, and register employees for PAYE. Also complete pension, NSITF and ITF registrations where thresholds are met.
Get the monthly cycle right
Compute PAYE using consolidated relief and statutory deductions, remit by the 10th of the following month, and keep the schedule and evidence of payment together for each period.
- PAYE remitted by the 10th of the following month
- WHT on qualifying payments remitted by the 21st (companies) with credit notes obtained for payees
- VAT returns filed by the 21st, whether or not VAT was collected
- Pension contributions remitted within seven working days of salary payment
Watch the contractor question
Paying an individual as a contractor does not automatically remove PAYE exposure. Where the working relationship looks like employment, the authority will assess PAYE and penalties on the employer. Document the arrangement properly and withhold correctly.
File the annual returns
Employers must file an annual return of emoluments and PAYE deducted, typically by 31 January. This is also what supports employees' individual tax clearance.
If you are behind
Regularise voluntarily. We reconstruct the schedules, quantify the exposure, apply for waiver of avoidable penalties where grounds exist and agree a payment plan before enforcement begins.
Need help with this?
We handle these filings every week. Tell us your situation and we will confirm the requirements, timeline and fees.
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