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<strong>2017</strong> EMPLOYER’S GUIDE TO <strong>PAYE</strong> | KENYA REVENUE AUTHORITY<br />
ii. “X” is employed as a general manager at a Basic salary of Kshs 40,000 per month.<br />
In addition his employer provides him with the following benefits:<br />
a. Night watchman<br />
b. House Servant<br />
c. Nissan Saloon car 1591 cc<br />
d. Free electricity<br />
e. Free water<br />
The employer has also provided housing - (leased premises - monthly rent Kshs. 20,000).<br />
The entries on a Tax Deduction Card, Form P.9A will be as follows;<br />
Kshs<br />
Monthly cash pay 40,000<br />
Add benefits 15,600<br />
55,600<br />
Housing at 15% x 55,600 = 8,340 (charge actual rent paid<br />
Kshs.20,000)<br />
20,000<br />
Taxable pay of the Month 75,600<br />
Kshs<br />
Tax charged on chargeable pay Kshs. 75,600<br />
First Kshs. 11,180 at 10% 1,118<br />
Next Kshs. 10,534 at 15% 1,580<br />
Next Kshs. 10,534 at 20% 2,106<br />
Next Kshs. 10,534 at 25% 2,633<br />
Balance Kshs. 32,818 at 30% 9,845<br />
Total Kshs. 75,600 17,282<br />
Less monthly personal relief 1,280<br />
<strong>PAYE</strong> to be deducted 16,002<br />
Show Computation of Benefits on the reverse side of P.9A. as follows:-<br />
Kshs<br />
Watchman (Night) 2,000<br />
Car (cost Kshs. 500,000 x 2% per month) 10,000<br />
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