Payroll & PAYE
Everything seemed fine running your own business until the day you took on your first employee and became an unpaid tax collector. This is when you found out what red tape was all about.
The day you took your first employee
Everything seemed fine running your own business until the day you took on your first employee and became an unpaid tax collector. This is when you found out what red tape was all about.
Let us take the strain
Let us take the strain away from you and let you get on with running and growing the business. Payroll is complicated and has to be done on time and you as the employer are responsible for the mistakes.
The PAYE contributions are withholdings from salaries of employees in order to satisfy their income tax responsibilities. The PAYE is computed using the Personal Income Tax rates. Payroll is complicated and has to be done on time and you as the employer are responsible for the mistakes. Our payroll team can take the burden away from you and let you get on with the day-to-day running and growing of the business.
We run payrolls on time and can provide a tailor made service for your business including;
- Employee payslips
- Monthly summaries
- Departmental reports
- Dealing with leavers and starters
- Provision of analysis of staff costs
- Monitoring of the legislative landscape
- PAYE returns for the NRA
- Assistance with automated payment set-up to your employees
Rates of Income Tax applicable to individuals resident in Sierra Leone – from 1st January 2019
Individuals engaged in trade, business, profession or vocation are required to pay taxes at the following applicable rate:
| Not over Le 6 million per annum: | Nil |
| Next Le 6 million per annum: | 15% |
| Next Le 6 million per annum: | 20% |
| Next Le 6 million per annum: | 25% |
| Above Le 24 million per annum: | 30% |
Annual Tax Rates
| Chargeable Income (Le) | Rate (%) | Tax (Le) | Cumulative Chargeable Income (Le) | Cumulative Tax (Le) |
|---|---|---|---|---|
| First 6,000,000 | Free | Nil | 6,000,000 | Nil |
| Next 6,000,000 | 15 | 900,000 | 12,000,000 | 900,000 |
| Next 6,000,000 | 20 | 1,200,000 | 18,000,000 | 2,100,000 |
| Next 6,000,000 | 25 | 1,500,000 | 24,000,000 | 3,600,000 |
| Exceeding 24,000,000 | 30 |
Monthly Tax Rates
| Chargeable Income (Le) | Rate (%) | Tax (Le) | Cumulative Chargeable Income (Le) | Cumulative Tax (Le) |
|---|---|---|---|---|
| First 500,000 | Nil | Nil | 500,000 | Nil |
| Next 500,000 | 15 | 75,000 | 1,000,000 | 75,000 |
| Next 500,000 | 20 | 100,000 | 1,500,000 | 175,000 |
| Next 500,000 | 25 | 125,000 | 2,000,000 | 300,000 |
| Exceeding 2,000,000 | 30 |
Further, for individuals receiving employment income, there is a threshold on non-taxable Allowance (or benefit) of Le 6,000,000.00 per annum or Le 500,000.00 per month.
Please also note that, for employees receiving leave allowance in excess of their gross monthly salary, the excess shall be subject to income tax at 30%. The Income Tax year of assessment is 1st January to 31st December.
NASSIT
Regarding Social Security, 5% of the employee’s basic salary is to be paid by employee and 10% of the basic is to be paid by the Employer, to the mandatory state pension fund (NASSIT). These levies are uncapped.
Due Date – The due date for the payment of PAYE taxes is the: 15th of the months in which the deduction is made. Note: there is a 10% penalty of the amount not withheld under the ITA 2000.
And the related tax planning advice
Beyond the payroll compliance service, we offer comprehensive advice on all employment tax issues including;
- Tax efficient remuneration strategies
- Planning for retirement
- Termination payments
- Inducement payments
- Tax efficient allowances/benefits planning