GROW YOUR BUSINESS IN GHANA
Have an enterprise level payroll department and a HRMS with Employee Self-Service at a per employee cost
Praxima Services Includes
Full Payroll Outsourcing
Hybrid Payroll Outsource
International Payment Management
Social Security Filing
Interact with Local Authorities
Human Resources Management System
Integration with all Accounting and Third Party
Benefits of outsourcing to Praxima
Local Tax Compliance
Secure Data Transferring
Running Your Payroll
Focus on Your
International Quality Payroll in Ghana
Payroll in Ghana
The Pay-As-You-Earn (PAYE) is a system that withholds income tax from the employees’ salaries by the employer who the remits the tax to the Ghana Revenue Authority by the 15th of the following month. It is also the responsibility of the employer to file tax return on the employee’s behalf by the 30th of April after the end of the calendar year.
TAX RATES | 2022
Taxable income of residents
(Cumulative chargeable income)
0 - 4,380 0%
4,380 – 5,700 5%
5,700 – 7,260 10%
7,260 – 43,260 17.5%
43,260 - 240,000 25%
Above 240,000 35%
*Non-residents pay a flat rate of 25% in taxes.
STATUTORY FILING | 2022
For all employment income, it will be the employer's responsibility to withhold and pay taxes on a monthly basis. The employer is also required to file tax returns on behalf of the employee by the 31st of March after the calendar year ends. It is required that self-employed persons make advance payments of personal income tax calculated at progressive rates in four equal installments.
SOCIAL SECURITY | 2022
Pension contributions are regulated by the National Pensions Act, 2008 which establishes the pensions schemes as follow:
First Tier - a mandatory basic national social security scheme;
Second Tier - a mandatory fully funded and privately managed occupational pension scheme, and
Third Tier - a voluntary fully funded and privately managed provident fund and personal pension scheme.
Employee: 5.5 percent of monthly gross covered earnings.
Employer: 13% of gross monthly covered payroll
The combined insured person and employer contributions fund 11 percent of social insurance benefits under Old Age, Disability, and Survivors; 5 percent funds mandatory occupational pensions; and 2.5 percent funds medical benefits.
The employer must remit the total contributions to the Social Security and National Institute Trust within 14 days after the end of the month of which the deductions was made.
An individual will qualify as a tax resident if he/she
is a Ghana citizen that does not have a permanent home outside Ghana in a calendar year;
is present in the country for 183 days in any 12-month period; or
is a citizen with a permanent home in Ghana, but temporarily outside of the country for a period not longer than 365 continuous days. Resident individuals are taxed on a sliding scale from 0% and 25%, while non-residents are subject to a flat rate tax of 20%.
Taxable employment income includes salaries, bonuses, overtime, other benefits and allowances.
Remuneration earned by a tax resident for any work performed outside Ghana will be taxed when earned and not when entering Ghana.
A resident individual may deduct several personal reliefs from their gross income to lower his/her annual taxable income. These personal reliefs include:
GHS 200 basic allowance for a married taxpayer that is supporting a spouse, or an unmarried taxpayer that is supporting at least two children.
GHS200 allowance for a taxpayer over the age of 60 that is employed or self-employed.
GHS 200 for child relief to pay for the education of a child.
A relief of GHS100 if a taxpayer is supporting an elderly relative.
A relief of GHS400 for professional, vocational or technical skill training.
Your HRMS is Standard
PAYMENTS, REPORTING & FILING
Direct payment into employee bank accounts. Emailed password protected pay slips.
Payment of taxes, benefit providers and other creditors.
Filing of returns to the authorities.
Generation and filing of statutory reports.
General ledger and 100's of customisable reports.