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Client Name
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Tax Health Check
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PAYE Review Checklist
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April 2011 to June 2013
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Comments
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1.Are employees taxed on the worldwide employee incomeYes
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2. Check whether the contract is for service or contract of service and how each are treatedThey are contracts of service
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3. Check on the PAYE computation for casualsNone
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4. Obtain payrollDone. Monthly payroll obtained and PAYE computation confirmed
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5. Choose sample of employees and check for taxation of emoluments and benefitsDone.
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6. Check for taxation of benefits and how it is treatedDone. Employees are not taxed on telephone benefits
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7. Payment of salaries through local and external ac/sChecked. All paid locally
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8. Compare Staff costs as per final a/c and staff costs as per p11s and P10SDone
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9. Check for benefits paid to staff and how they are treated for taxDone. Employees are not taxed on telephone benefits
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Benefits include motor vehicles , medical, telephone ,housing, school fees, etcDone. Employees are not taxed on telephone benefits
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10. Check for staff loans and advances and fringe benefit tax exposureEmployees have not been given loans
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11. Check for retirement benefits scheme and the treatment- also confirm withholding tax treatmentNone
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12. Check for treatment of per diems and reimbursment of expenses, mileage payments- is it within AA approved rates
Reimbursement is at cost and support with receipts is required
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13. Check of reliefs - life insurance, mortage interest etc- how is this accounted forNone
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14. Check for treatment of group life policyIt is on all employees with Madison and Chartis from 2013
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15. Check on the medical policyAll employees are covered. Employer makes the contribution.
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16. Check for staff payments in the cash book and their treatmentDone.
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17. Recompute sample employee paye and the use of correct PAYE ratesDone
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18 Employee PINS- confirm that each has a PIN NoAll employees have PINs
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19 Treatment of non cash benefitsThere are no non cash benefits
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20.Exemption of employees from taxationNone
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Treatment of Long Service AwardsNone given in the period under review
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Treatment of expatriate employees
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income- worldwidePaid a gross salary which tax is paid in Kenya.
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residencyNon Kenyan employees are tax resident in Kenya and hold valid work permits
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passagesAre entittled to passages
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pension and social welfare deductionsNSSF deducted and paid in Kenya. No pension scheme
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21.NSSF AND NHIF-
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DeductionDone for all employees
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PaymentAll payments were done on time
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Submission
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Casuals / temporary worker registrationN/A
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22. Pension contributions
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EmployerNo pension scheme
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employee
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Treatment of excess pension contribution
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Treatment of overseas pension contributions
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Total employees6
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Casuals0
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Permanent6
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ACCOUNTS TO CHECK
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Employment contracts
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Staff welfare account
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Staff maintenance acccount
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Staff loans account
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Petty cashbook
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Salaries control acccount
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Per diem policy, lunch benefit, benefits in kind
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Reliefs and hw they are effected
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Salaries ledger account
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P9A's
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TB
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70
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77
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