Dear X3 HR and Payroll User,
Following the change in the Kenya tax table (please see the email below), the tax rate for the secondary employees should also be updated to 25% (previously 30%).
The legislation does not state that "secondary employment must be taxed at 30%"; neither does the Kenya Revenue Authority (KRA) in any of its official publications. In the Kenyan tax practice, it is assumed however that the part-time directors and secondary employees who have primary employment elsewhere, should be taxed using the highest tax rate for individuals. Secondary employees refers to employees who are already in the highest tax bracket at their primary employment to ensure that they do not end up paying high tax upon assessment, instead, they can claim tax back. This tax rate is not used for casuals, contract employees or part-time employees.
It is important to take note of the following:
- If the patches sent on the 24th of April is not integrated yet, only patch W_HR006_KENU9.zip (version 9) or W_KEN006_2020R3.zip (version 12) should be integrated.
- If the previous bullet applies, create a new “valid from” date 01/04/2020 if it is not already done by copying the latest folder/legislation values. This must be done before integrating the pay plan patch, to ensure all other statutory values are created for the new date.
- If the patches sent on the 24th of April is already integrated, only patch V9_KEN_COVID19_SECOND.zip (version 9) or W_KEN006_2020R3.zip (version 12) should be integrated.
- The pay plan patch(es) must be integrated to both the reference and daughter folders. Access: Development > Utilities > Patches > Patch integration
Request the below from our support desk
Version 9:
- Pay Plan Patch V9_KEN_COVID19_SECOND.zip
- Pay Plan Patch W_HR006_KENU9.zip
- KEN_V9_PayPlan Extract_Release 6
Version 12:
- Pay Plan Patch V12_KEN_COVID19_SECOND.zip
- Pay Plan Patch W_KEN006_2020R3.zip
- KEN_V12_PayPlan Extract_2020R3
Kind Regards
X3 HR and Payroll Support