According to Nikki Summers, Regional Director for Sage in East Africa, it is now possible to keep loose ends together in tandem with changing payroll legislation
According to Nikki Summers, Regional Director for Sage in East Africa, it is now possible to keep loose ends together in tandem with changing payroll legislation in the Kenyan financial context.
In a press release from the company, the director reminisced on how traditional payroll has been smooth and simple, just involving timely paychecks for employees with follow-up pay-slips, before adding that now the Kenya payroll environment has turned more complex thanks to income tax controls that have seen the Labour docket of the government and Kenya Revenue Authority (KRA) focus more on employers.
The release shows that failure to keep strictly to the book through tax evasion, late payment of payroll taxes or underpayment through error and omission has become a major business risk. For instance, culprits who miscalculate statutory deductions for the National Health Insurance Fund (NHIF) and the social security benefits for employees attached to the National Social Security Fund (NSSF) may incur painful fines and penalties. Besides, one’s business reputation may depreciate in visibility.
With the sophistication in tax and statutory niches of the evolving payroll environment in Kenya, companies are more and more abandoning spreadsheets and other manual calculations that no longer meet their payroll requirements. For now, Nikki Summers reveals, they are seeking for automated systems that can remotely perform their bookkeeping and do payroll math.
The Updated Face and Benefits of Automated Payroll
On April 3 of the year, Sage launched its Sage One Payroll in Kenya, a system that has made it possible for companies to perform accurate calculations and commit to file submissions with uptime guarantee, a thing they could not perform with their previous manual payroll administrators.
Automation, such as the one the company has initiated, aids to fast track yearly changes, including the pending New Income Tax Act in parliament that may influence payroll and impact on future payroll tax calculation. For this to happen, Nikki Summers says that:
“The software is constantly updated to align with the latest tax laws and tables, so you don’t need to update your spreadsheet formulas or learn to make new manual calculations every year. This has also reduced the risk of human error.’
With the tap of a button, the whole company’s employee profile becomes visible and accessible on the dashboard through this up-to-date business automation.
Fighting White-collar Crimes
The company also reveals that since payroll fraud has become embedded in the business world as the most typical crime of all, with additional possibilities of generating losses via false remittances, a strong payroll tool is essential to tighten the bolt on financial controls to avoid just such mistakes. It is more than a firewall for sealing fraud gaps where fraudsters can easily permeate the company’s non-foolproof defenses.
According to the release, “business builders and entrepreneurs don’t go into business to manage admin and red tape, which is where automation makes a difference.”
Arguably, the introduction to the Kenya’s labour sector of Sage One Payroll will see managers and employees focus more time on constructive tasks in time to catch up with the vision of Sage to oversee the transition to completely invisible payroll administration by the year 2020 in offices.