Payroll Services for Businesses in Kenya: How to Select the Best

About payroll services for businesses in Kenya

How are you handling payroll in your business? Are you doing it in-house or outsourcing payroll services? The way you handle payroll for your business could determine if you stay in good books with the Kenya Revenue Authority (KRA) or not. These past few weeks have seen employees and businesses rush to file returns in compliance to KRA. While most may have managed to complete the process without a hitch, others stand to be penalized for errors and lack of filing altogether. Where does your business stand in all this?

Choosing payroll services that are right for your business is very important as it will help you reduce costs, save time and improve security for your company records. You can read more about the benefits in this post here. To ensure that you avoid mistakes when handling your employees’ salaries and stay away from KRA penalties, invest in effective payroll services. Below is how you can choose the right payroll services for your business.

Guide to Selecting Payroll Services for Your Business

1. Use referrals to identify top payroll services

When you start looking for businesses that offer payroll services in Kenya, you may get confused by the many services you come across. This may only make your decision process even more complex. If you were to search online for example, the reality is you will see various companies with various package deals. So, how do you know which one is best for your business?

The best way to select payroll services that are a good fit for your company is through referrals. Ask for recommendations from your friends who own businesses or who have experienced the services first hand, and then use that information to narrow down the best payroll services. And be careful about the package you get, some payroll processing companies can include costs you don’t necessarily need.

2. Understand the services being offered and charges

As mentioned earlier, some companies may include added services that as a business you do not really need at the time or in the near future. These services will only increase the charges, leading you to pay more for something you do not even need. To ensure this does not happen, take note of the payroll services you need. Do you need a complete payroll package where payroll companies handle pay checks and file returns for your employees? Or do you just need your payroll taxes paid to KRA?

The decision is yours but good payroll services should include the three; pay your taxes, pay employees and file tax returns. Then do your due diligence on the charges for these services, but remember to pay attention to what you are getting beyond the package.

3. Carry out a background check

Before one settles on a decision, it is always vital to do a background check. That’s why you will always do one before hiring an employee to join your company. The same applies when choosing payroll services for your business. Once you have done your due diligence and identified the potential payroll service providers you will use for your business, it is time to do a background check.

Talk to clients who use their payroll services and find out key things such as accuracy of the process, responsiveness, susceptibility to mistakes, any additional charges or changes in pricing, who handles mistakes and how long it takes, among others. The responses you receive will help you select the best payroll services provider to work with.

4. Confirm the terms with your payroll services provider

Now that you have identified a payroll processing company to work with for your business, it is time to make the basics clear in you agreement. Come up with a schedule for when you will be liaising with the payroll services provider and how often you should expect a report from them.

Ensure there is clarity on the due process whenever there in a mistake either from your side or the service providers and confirm who takes care of KRA penalties and the like. And as the two parties are in business, make sure you keep tabs with your finances in-house to make sure your new service provider is doing as they promised. And if there is ever a need to change providers, make sure you do it at the right time of the year.

Selecting the best payroll services for your business will help ensure that you pay your employees and your KRA dues on time. The opposite is true if you choose the wrong payroll service provider.

Looking for payroll services for your business in Kenya? Contact pwainaina@corporatestaffing.co.ke for more information.

 

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