Every company is unique. Whether you offer monthly airtime allowances, company housing, or Sacco deductions, Nawiri allows you to build custom payroll elements that perfectly map to Kenyan tax laws.
Understanding Payroll Categories
When you create a new Payroll Element (Admin Dashboard > Manage Payroll Elements), you must assign it to a category. This tells our tax engine how to treat the money:
1. Cash Allowance (Taxable)
Use for transport, airtime, or responsibility allowances. It is added to the Basic Salary to form the Gross Pay, and is fully subjected to PAYE, SHIF, and Housing Levy.
2. Non-Taxable Allowance
Use for specific KRA-exempt payments, such as Per Diems (Night Out) up to the statutory daily limit. This money increases the employee's Net Pay but does not increase their taxable income.
3. Non-Cash Benefits (Housing & Car)
Use when you provide a company car or pay rent on behalf of an employee. The system automatically calculates the KRA Fringe Benefit Tax (e.g., 15% of gross for housing) and adds it to the taxable income, without increasing the actual cash payout.
4. Company Deductions
Use for Sacco contributions, salary advances, or private insurance. These are deducted from the employee's final Net Pay after all statutory taxes have been applied.
How to Assign an Element to an Employee
Once you have created your rules:
- Go to the Employee's Profile.
- Click the blue "Assign Element" button.
- Select the rule from the dropdown (e.g., "Housing Allowance").
- Enter the monetary value.
- Click Save. This amount will now automatically apply to every future payroll run until removed.