Employees are among an organization’s most important stakeholders, their ability, knowledge and experience ensure there is business continuity. Virtual HR purposes for employees to be remunerated for this contribution promptly and accurately by offering quality payroll services. Remuneration is the total compensation a business pays its employees for a set period or on a given date through the payroll. Our company executes payroll management for organizations’ smooth administration of staff financial reports such as wages, salaries, deductions and bonuses.
A business entity of high profile such as yours, can outsource payroll by hiring Virtual HR to manage all your payroll functions which in return will free up both time and resources allowing your company to focus on core tasks by reducing costs and the risks involved.
The task of managing payment of wages and salaries by a company to its staff is known as payroll processing. To automate the payroll process we use a payroll system which can be integrated with leave and attendance tracking systems and employee service portal to keep track of employee working hours, calculate salaries, taxes and deductions. Payroll processing steps include gathering employee time information for a selected time period, managing of benefits and deductions through payroll calculation and distributing employee pay for that period.
Precision, an important quality in our company is required during this process and involves determination of payroll gross income (Basic Pay+
Benefits/Allowances/Commissions), followed by subtraction of deductions and payroll taxes (% of employee’s pay to the government) to arrive at payroll net income (employees take home after all deductions).
Compliance to payroll statutory and filing of returns to Kenya Revenue Authority as directed by the Kenyan Law is mandatory during the payroll process to avoid any litigation issues. Virtual HR is committed to your organization’s unwrinkled relationship with the government. Statutory deductions include;
- PAYE -Tax required to be deducted by an employer from an employee’s taxable pay.
- NSSF Deductions- Mandatory contributions made by the employer on behalf of the employee towards Kenya’s main retirement benefit scheme. Virtual HR verifies that this process is timely and faultless.
- NHIF Deductions- Mandatorycontributions made to the primary health insurance provider in Kenya.
- Tax deductions- Apercentage withheld from an employee’s pay by an employer who in turn remits it to the government.
An employer should pave way for a comfortable retirement life of employees and Virtual HR ensures correct Collecting Pensions by consolidating NSSF Deductions and the Provident Fund which in the long run provides a monthly income for their declining years.
Accountability in this process is achieved by issuing Pay slips to employees containing a list of components of their salary along with specific details of employment.