Payroll Services / PAYE Compliance Services: Why It Matters for Your Business
Managing payroll and ensuring compliance with Pay As You Earn (PAYE) regulations can be a complex and time-consuming process. Errors or non-compliance can result in costly penalties, disrupt business operations, and impact employee satisfaction. At Frankbridge Advisory Limited, we help businesses navigate payroll and PAYE compliance efficiently, ensuring full adherence to Kenya Revenue Authority (KRA) regulations while optimising cost management.
What is PAYE anyway?
PAYE (Pay As You Earn) is a tax collection system where employers deduct income tax from their employees’ salaries and remit it to the Kenya Revenue Authority (KRA). The deductions are based on an employee’s taxable income, including salaries, allowances, bonuses, and non-cash benefits above Ksh 5,000 per month.
Employers are responsible for PAYE compliance, which involves:
Deducting PAYE from employees’ monthly earnings.
Remitting the deducted amounts to KRA by the 9th of the following month.
Filing PAYE returns through the iTax system.
PAYE applies to both resident and non-resident employees, and failure to comply with PAYE regulations can lead to severe financial and legal consequences.
The Consequences of Non-Compliance with PAYE Regulations in Kenya
Non-compliance with PAYE laws can lead to:
Heavy penalties and interest: Late filing attracts the higher of 25% of tax due, or Ksh 10,000, while late payment incurs a 5% penalty plus 1% interest per month.
Legal risks: Employers who fail to deduct or remit PAYE may face legal action from KRA.
Business disruptions: Non-compliance can result in audits, investigations, and financial strain, affecting business operations.
Employee dissatisfaction: Failure to remit deductions such as pension contributions or social security payments can lead to employee disputes and reputational damage.
How Frankbridge Advisory Limited Can Help Keep you PAYE Compliant
At Frankbridge Advisory Limited, we've seen too many businesses struggle with PAYE compliance. That's why we offer expert guidance to help you navigate the complexities of Kenyan tax law. We offer a full suite of payroll and PAYE compliance services tailored to your business needs:
Payroll tax compliance
Risk management
Cost management
Multi-country payroll coordination
Payroll advice and training
Tax registrations and deregistration
Tax residency certificates and compliance certificates
Filing Horn of Africa annual tax returns
Read more on these services below:
Our PAYE Compliance Services:
Payroll Tax Compliance
We ensure your business meets all payroll tax obligations, from PAYE registration to monthly filings with the Kenya Revenue Authority (KRA). Our team handles accurate tax calculations, timely submissions, and issuance of annual PAYE certificates to keep you compliant. If selected for a KRA audit, we provide full support to safeguard your business.
Risk Management
We conduct payroll audits and "health checks" to identify compliance gaps before they become costly issues. Our team also provides expert assistance during KRA audits and investigations to protect your business from penalties and fines.
Cost Management
We help businesses structure employee pay and benefits efficiently to optimise costs while ensuring full tax compliance. Our approach ensures businesses take advantage of available tax incentives while maintaining financial sustainability.
Multi-Country Payroll Coordination
For businesses with expatriate employees or operations in multiple countries, we offer seamless payroll coordination. Using high-end technology, we ensure accuracy, compliance, and efficiency across borders.
Payroll Advice and Training
We provide tailored guidance on payroll processing and tax compliance, helping businesses streamline reporting and record-keeping. Our training empowers businesses to manage payroll confidently while meeting regulatory requirements.
Tax Registrations and Deregistration
We assist with PAYE and other tax registrations, as well as deregistration when necessary. Our team ensures businesses remain compliant with all social security, health insurance, and tax regulations.
Tax Residency Certificates and Compliance Certificates
We help businesses and individuals obtain tax residency certificates and tax compliance certificates, ensuring they meet legal requirements and have the necessary documentation for tax claims.
Filing Horn of Africa Annual Tax Returns
Filing annual tax returns across the Horn of Africa—covering Kenya, Ethiopia, Somalia, Djibouti, Eritrea, and Sudan—requires businesses to navigate complex tax laws and regulatory frameworks. Ensuring full compliance is crucial to avoid penalties, audits, and disruptions.
At Frankbridge Advisory Limited, we provide expert guidance to help businesses stay compliant and efficiently manage your tax obligations.
We help businesses achieve:
- Compliance with local tax laws.
- Accurate financial reporting.
- Cross-border tax coordination.
- Timely filing and submission
- Audit and dispute resolution support.
With Frankbridge Advisory Limited, you gain a trusted partner to simplify tax compliance, minimize risks, and ensure smooth, penalty-free tax filing across the region.
Legislative Updates
Tax laws and regulations are constantly evolving, and staying informed is key to maintaining compliance and avoiding unexpected tax liabilities. We provide timely updates on:
Changes in the tax laws and exemptions
New compliance requirements
Key updates from the Kenya Revenue Authority (KRA), National Treasury, and Parliament
Insights on disputes that have been decided in the courts and tax tribunal and policy changes affecting businesses
Stay ahead of tax changes. Drop your email HERE to receive exclusive tax updates from Frankbridge Advisory straight to your inbox.
Why Choose Frankbridge Advisory Limited?
Expertise You Can Trust – Our team of tax professionals has extensive experience in payroll and PAYE compliance.
Tailored Solutions – We customise our services to fit your business’s unique needs.
Proactive Compliance Management – We'll keep you informed about changes to tax laws and regulations, minimising risks and penalties.
Confidentiality Guaranteed – We uphold the highest standards of confidentiality in handling payroll data.
Don't Risk It
Failure to comply with PAYE regulations can result in heavy fines and penalties. Don't risk it. Partner with us today and ensure your business is always on the right side of the law. Contact Frankbridge Advisory Limited today for expert guidance.
Frequently Asked Questions (FAQs) on Payroll Services / PAYE Compliance Services
What does PAYE mean for Kenyan businesses?
How does PAYE compliance affect my business?
What are my PAYE obligations as a Kenyan employer?
Why should I choose Frankbridge Advisory Limited for payroll and PAYE compliance?
How does Frankbridge Advisory Limited help with PAYE tax compliance?
Do you offer payroll processing for expatriates and multi-country businesses?
What payroll-related tax registrations and deregistrations do you handle?
What is the penalty for late PAYE filing, and how can you help avoid it?
How do I get started with Frankbridge Advisory Limited's payroll services?
Contact us for a consultation—we’ll assess your needs, recommend solutions, and seamlessly set up your payroll processes.
Ask us about our PAYE Compliance services.
