Payroll services involve the efficient administration and management of employee compensation, which includes the deduction of Pay As You Earn (PAYE), pensions, and the National Housing Fund from employees’ salaries, if applicable. These services also encompass the timely remittance of the PAYE to the State Internal Revenue Service, ensuring it is submitted before the 10th of the following month.
Additionally, payroll services involve the contribution of employer-pensions and prompt remittance to the respective pension funds of employees within a maximum of 7 days from the salary payment date. On an annual basis, businesses are responsible for paying 1% of the payroll gross figure to the Industrial Training Fund, as well as 1% to the Nigeria Social Insurance Trust Fund.
Furthermore, between January 1st and 31st of each year, the payroll service provider performs the necessary annual filing to the State Internal Revenue Service, covering the previous year’s payroll activities.
These comprehensive services include tasks such as calculating employee earnings, accurately withholding taxes, generating pay stubs, and ensuring strict compliance with payroll laws and regulations.
The payroll service provider may also offer convenient online portals where employees can access important information, such as tax forms and other relevant payroll details.
By outsourcing payroll services, businesses can benefit from significant time and resource savings while minimising the risk of errors and penalties.
This allows entrepreneurs to focus on their core business activities while ensuring accurate and timely payments to their employees.