Payroll responsibilities of a Nigerian employer

Being a Nigerian employer imposes certain responsibilities. It isn't just about paying the employee his salary. There are other external payroll obligations.

If you own a business, you must recognize that the very moment you hire an employee in your business, you have payroll responsibilities.
Even if only one employee, you must perform the responsibility.

Here is a simple list to guide every Nigerian business owner or just any employer in Nigeria:​

  1. Inform a proposed employee about payroll and required deductions, during the hiring process.
  2. Maintain a monthly payroll sheet that shows everyone paid in the month, their gross pay, deductions, and net pay.
  3. Deduct PAYE, Pensions and NHF from employee’s salaries, where they apply.
  4. Remit the PAYE to the State IRS, before the 10th of the following month.
  5. Contribute employer-pensions and remit the Pensions to employees respective Pension Funds, not exceeding 7 days from salary payment.
  6. Annually, pay 1% of the payroll gross figure to the ITF.
  7. Also, pay 1% of the payroll gross figure to the NSITF.
  8. Between January 1st to 31st of each year, perform the annual filing to the State IRS, for the previous year.

Did you learn something, quick and easy? We hope you did.

Would you like to earn how to calculate employee taxes? and maybe other taxes that are required of a business owner in Nigeria? You should check out our online course titled, “How to calculate taxes in Nigeria”.

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