Can anyone help me understand this payslip deductions ?

[Dunya]

@makarapa

Nice observation, but wacha kudanganya watu. Please note the NHIF deduction of Kshs.1,700.00 and try to relate it with the new NHIF deduction rates. It becomes obvious that the guy earns way over Kshs.100,000.00 hence the NHIF deduction of 1,700.00. Unless you try to convince us how the NHIF deduction of 1,700.00 is attributable to the one-off payment of 200k you are quoting, to the best of my knowledge, NHIF deductions will never be affected by one-off payment. Ni kama kusema ile mwezi mtu analipwa acting or leave allowance, NHIF deduction zinapanda then zinashuka the following month akipata mshahara ya kawaida.

NHIF for any month is pegged on the gross salary of that month my friend. If the gross changes it changes with the NHIF. Obviously this month is high because of the lumpsum. THATS A FACT

[Dunya]

@panktcha you are not taking into account that there is a lumpsum whose taxation is calculated differently spread back over five years. You are taxing it as if its all current years income which is not the case

[makarapa]

@Dunya

NHIF for any month is pegged on the gross salary of that month my friend. If the gross changes it changes with the NHIF. Obviously this month is high because of the lumpsum. THATS A FACT

We are learning. Please quote the exact enabling legislation otherwise your fact may be taken to be a rumour.

[bjurmann]

Huyu jamaa hana loan? Mine is dirty

[Dunya]

@makarapa

We are learning. Please quote the exact enabling legislation otherwise your fact may be taken to be a rumour.

Naona umekunja mkia after misleading the public. Anyway, just download the NHIF Act and read it throughly under contributions or go to their website under frequently asked questions

[Ka-Buda]

@makarapa

DEFINED CONTRIBUTION is what goes to your pension scheme hence offset from your pay before calculating Paye, TAX CHARGED is PAYE charged on the first Kshs. 38,893/= of your pay, MPR USED is your statutory monthly relief of Kshs. 1,162 granted under the Income Tax Act hence deductible from the calculated Paye to determine what is to be remitted. In my opinion, i think there might be a bug in the payroll software as the computation of the TAX CHARGED item is not strictly as per the Income Tax Act. Accountants to weigh in on the matter

You could be speaking ancient Chinese right now and it would sound the same as far as my ignorant ear is concerned!
When i started my own business an experienced business man advised me; Always get the most famous and expensive accountant to do your books,they may charge you alot for their services But they always save you a fortune on your taxes.
Hakuna kitu hunichokesha akili kama doing the books for my business but thank god i came to an agreement with my accountant kitambo; my job is to just keep the invoices and reciepts safely.Her job is to keep my tax to a minimum. Thank god for accountants.

[makarapa]

@Dunya, i have read the Act you purport to quote. Please educate yourself on what a standard contribution is under the Act. Am not disputing your assertion since it may be informed by practice. However, be advised that your position is erroneous. I stand corrected though

[montecarlo]

@Dunya

This guys salary is about 30k gross p/m if you look at his tax charged of around 5k. Then he has been paid a lumpsum of abt 200k most probably gratuity upon expiry of a contract which is making him pay the lumpsum tax of 28k. So effectively hana kazi unless the contract is renewed ama ameresign ama akafutwa. Take that to the bank

True because for you to have a gross you must have a basic figure…and that is missing…also the two tax amts…na Kwani that firm haina HR?

[makarapa]

@montecarlo

True because for you to have a gross you must have a basic figure…and that is missing…also the two tax amts…na Kwani that firm haina HR?

Good observation gentleman. However, I think we might want to appraise ourselves on some bit of programming. Why? You might ask. Programming is core to payroll systems, that’s obvious. What is not obvious and I think @webdev and other programmers can weigh in is the use of “if blocks”. Hence, the system is coded to apply a rate of 30% on anything above Kshs.38,893.00.
In Other News, si tuache boy ajienjoy na salary yake ya over 100k!!!

[statham]

@Ka-Buda

…Her job is to keep my tax to a minimum. Thank god for accountants.

Hehehe…

[Ka-Buda]

@statham

Hehehe…

Eh,ni manzi. She cant be more than 28 and i dont find her remotely attractive but she is damn good at her job.
Ulikuwa unachekeshwo ni nini?

[Fondo_Pendo]

@Arokaz

[ATTACH=full]7548[/ATTACH]

This pay as you earn thing.

kwani where do you work to earn such a fat salary? give us a clue

[Arokaz]

Thanks guys for your contributions, [SIZE=5]@Dunya [/SIZE][SIZE=6]Fondo Pendo[/SIZE][SIZE=5], i just got a new boss who appreciate my efforts,
so i get rewarded for monthly target met… sky is the limit.
[/SIZE]

[Dunya]

@Arokaz

Thanks guys for your contributions, [SIZE=5]@Dunya [/SIZE][SIZE=6]Fondo Pendo[/SIZE][SIZE=5], i just got a new boss who appreciate my efforts,
so i get rewarded for monthly target met… sky is the limit.
[/SIZE]

Congrats. I was right about the one off payment (bonus or something) besides ua 30k salo