Payroll home tutorial on advance excel & sage 50 accounting for accountant in abuja

YUAS2COM PROF CONSULT NIG LTD ADDRESS: Block 7, Flat 12 Jaling Street Area 2, Garki Abuja Call: 08033493454, E-mail: [email protected] TRAINING GOAL:  How to calculate Payroll tax based on Nigerian Personal Income Tax (Amendment Act) 2011 TRAINING OBJECTIVE:  Determine Gross taxable Income.  Derive Tax exempts.  Calculate Tax allowance (Relief).  Derive Net taxable Income.  Calculate the Nigerian payroll PAYE tax based on PITA 2011. NOTE: BASIC + HOUSING + UTILITY:+TRANSPORT +MEAL+ENTERTAINMENT + OTHERS= GROSS INCOME LESS EXEMPTIONS PENSION+ GRATUITY:+LIFE ASSURANCE AND NHF= TAX PAYABLE (PAYE) Tax Exempts The Nigerian Payroll PITA tax law provides certain payroll deductions as tax exempt. What this means is that tax Exempt amount has to be removed from Gross taxable Income (earnings) before applying the tax rules to determine tax. The legal Tax Exempts available are as follows; 1. Pension deductions, 2. NHF deductions ( National Housing Funds) 3. Gratuity payment 4. NHIS (National Health Insurance Scheme) 5. Life Assurance Consolidation Relief Allowance ( CRA) The new Nigerian Payroll tax law came with a set of new tax relief. Every taxable person is entitled to this relief. They are: Consolidated Relief: This relief is equal to N200,000 or 1% of Gross income whichever is higher Plus 20% of Gross income. Tax Table The BELOW tax table rates must be applied to the Net “taxable income” to get tax payable. Net taxable income is derived after deducting the following from Gross Taxable Income; (a) Tax Exempts (b) Consolidation Relief Allowance (CRA) Here is the current tax table: Annual Rate First N300,000 7% Next N300,000 11% Next N500,000 15% Next N500,000 19% Next N1,600,000 21% Over N3,200,000 24% Yuas2com ICT Centre is your trusted service provider. Call: 08033493454