Generating KRA P9 forms for employees in Kenya is an essential task for employers. The P9 form is a statement of earnings and deductions, which is issued by employers to their employees at the end of each tax year.
The form is used by employees to file their tax returns with the Kenya Revenue Authority (KRA). In this article, we will guide you on how to generate P9 forms for employees in Kenya.
Step 1: Understand the KRA P9 Form
Before you can start generating P9 forms for your employees, it is important to understand what the form is and what information is required.
The P9 form contains details of an employee’s income, allowances, and deductions for a specific tax year. The form also includes the employer’s details, such as name, PIN, and address. The P9 form is used by employees to file their tax returns with KRA.
Step 2: Gather Employee Information
To generate P9 forms for your employees, you need to gather their information, including their names, PINs, and employment start dates.
You also need to gather information on their salaries, bonuses, and any other income earned during the tax year. It is important to ensure that the information you gather is accurate and up to date.
Step 3: Calculate Income Tax
Once you have gathered all the necessary information, you need to calculate the income tax for each employee.
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You can use the KRA tax calculator to determine the amount of tax due for each employee. The tax calculator takes into account the employee’s income, allowances, and deductions.
Step 4: Generate KRA P9 Forms
After calculating the income tax for each employee, you can generate their P9 forms. The P9 form is generated using the KRA iTax system.
To generate the P9 form, log in to the iTax system, select the employee whose P9 form you want to generate, and click on the ‘P9’ button. The system will generate the P9 form, which you can then download and print.
Step 5: Issue KRA P9 Forms to Employees
Once you have generated the P9 forms for your employees, you need to issue them to each employee. You can either send the P9 forms to your employees electronically or provide them with a printed copy.
It is important to ensure that each employee receives their P9 form in a timely manner, as they need it to file their tax returns with KRA.
Step 6: Submit P9 Forms to KRA
After issuing the P9 forms to your employees, you need to submit them to KRA. This can be done online using the iTax system. To submit the P9 forms, log in to the iTax system, select the ‘Returns’ tab, and click on the ‘P9 return’ button. The system will prompt you to upload the P9 forms for all your employees.
Step 7: Verify KRA P9 Forms
After submitting the P9 forms to KRA, you need to verify that they have been received and processed. You can do this by logging in to the iTax system and checking the ‘Returns’ tab. The system will display the status of your P9 return, indicating whether it has been received and processed.
Step 8: Correct Any Errors
If you notice any errors on the P9 forms, you need to correct them before the tax deadline. You can do this by logging in to the iTax system, selecting the ‘Amendments’ tab, and making the necessary corrections. It is important to ensure that all the information on the P9 form is accurate and up to date.
Step 9: File Your Tax Returns
After submitting the P9 forms to KRA, each employee needs to file their tax returns. They can do this online using
the iTax system. To file their tax returns, employees need to log in to the iTax system, select the ‘Returns’ tab, and click on the ‘Income Tax Resident Individual’ button.
They will then need to enter the information from their P9 form, including their income, allowances, and deductions. The system will calculate their tax liability and display the amount due.
Step 10: Pay Tax
After filing their tax returns, employees need to pay their tax liability to KRA. This can be done online using the iTax system. To make a payment, employees need to log in to the iTax system, select the ‘Payments’ tab, and click on the ‘Payment Registration’ button.
They will then need to enter the amount due and select their preferred payment method. KRA accepts various payment methods, including bank transfers, credit cards, and mobile money.
Conclusion
Generating P9 forms for employees in Kenya is an important task for employers. The P9 form is used by employees to file their tax returns with KRA.
To generate P9 forms, employers need to gather employee information, calculate income tax, and use the iTax system to generate the forms. Once the P9 forms have been generated, employers need to issue them to employees and submit them to KRA.
Employees then need to file their tax returns and pay their tax liability. By following these steps, employers can ensure that their employees are compliant with tax regulations and avoid penalties from KRA.
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