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Kenya

Taxation for Casual Employees

id : 94   cat : Payrolll Tax   
CPA John what's your take on casual who work daily and are paid 700sh a day.At the end of the month they will have earned about 17000.When should you charge tax and yet you don't know whether they will be present the next day? Who is a casual?
Asked by : David Ngatho
 DOQ : 2016-11-24 15:25:00
   David Ngatho

Answer

Good question CPA David. The Kenyan Tax Law does not recognise the term "CASUAL". However some of these forms of employment could be treated as specific contracts especially for independent skilled labourers and hence application of withholding tax for payments of 24k and above. Part Time Lecturer - PAYE is calculated in full and a payslip issued. Flagged as a duplicate. See also here
Answered by : John Muiruri
 DOA : 2016-11-24
   John Muiruri
Comments
My take is that we should try and observe the employment act and at the same time income tax act. Someone who has worked for you for over three months is not regarded as a "casual" .If someone works for you for more than three months whether there is a c
   David Ngatho    David Ngatho  2016-11-24 15:57:00
This I s correct, whether there I s a contract or not after 3 months of employment casuals are deemed permanent. However, the employer must register for PAYE obligation
   Esther Mburu    Esther Mburu  2016-11-24 16:01:00
CASUALS : Correct & that's why tax legislation may not be fair in some instances. However the assertion that the "CASUAL" may not get another job there after is dealt with when an ANNUAL return is filed and a claim for refund made. Finally tax law is to b
   John Muiruri    John Muiruri  2016-11-24 16:05:00
All what I'm saying is that it's either a person is employed or not.If employed then the employee should deduct PAYE.If not then the employer does not have control of what the employee makes and is not mandated. (I stand to e corrected). By the way, I do
   David Ngatho    David Ngatho  2016-11-24 16:22:00
CPA John, what if the amount is less than 24k a month? Does withholding tax apply? Itax system does not have.
   Barnabas Kipkorir    Barnabas Kipkorir  2016-11-25 15:13:00
Withholding tax should apply to management or professional fees. Does a casual qualify as such? I don't think so!
   Vincent Ongera    Vincent Ongera  2016-11-25 15:18:00


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