Preview, process, approve, pay and reconcile — the monthly pay run from start to lock.
The pay run is the moment everything comes together: employee records, pay elements, monthly
inputs and statutory rates. Do it in the right order and it takes twenty minutes.
In order: daily rate, basic pay adjusted for absence, allowances, overtime, then NHIMA at 1% of
basic, NAPSA at 5.5% of gross up to the ceiling, and PAYE across the progressive bands. Then
employee deductions and loan instalments.
3
Payslips are generated
One per employee.
4
The run enters Draft
Calculated and saved, but not yet authorised for payment.
Export the run with employee bank details and net amounts.
2
Make the transfers
Through your bank, as a batch file or individually.
3
Mark the run as Paid
Once the transfers are made.
4
Pay the statutory amounts
PAYE, NAPSA and NHIMA are separate payments to separate bodies, on their own deadlines. Paying
staff is not the end of the month.
Employees’ net pay and the statutory deductions are two different payments. The PAYE, NAPSA and
NHIMA you deducted is not your money — it is held on behalf of the employee and the regulator.
Do not spend it.
Correct at source and re-run. Nothing has been paid
Approved, not paid
Reverse the approval, correct, re-run
Paid
Adjust in the following month. Do not unwind a paid run
Reconciled or locked
Adjust in the following month
Reversing a paid run affects payslips already sent, statutory returns possibly already filed, and
your bank reconciliation. Correcting forward is almost always the right answer — and be explicit
with the employee about what is being adjusted and why.