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Method Of Administering PAYE
Duties of Tax Office
Duties Of Employer
Duties Of Employees
Definition of PAYE
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Method Of Administering PAYE

The law stipulates that an employer is answerable for Paye TAXES deducted or to be deducted and paid to the goverment.

Below are the various methods of operating PAYE :

A)  Collection of Tax Form A by Employers:

Tax Form A will be supplied free of charge to employees through their employers. Employers should approach the relevant Tax officers in their various states (including the FCT) where they operate to collect the tax form A, for distribution to their employees.

B) Completion of Tax Forms collected by employees:

Employers should certify the correctness of the salaries and allowances declared in the forms by their employees to ensure that the correct reliefs are granted to the employee. Employees whose  forms  are not fully completed and certified by their employers may experience delay in getting their tax deduction cards.

c) Returns of completed Tax Forms A by Employers:

All Tax Deduction Cards(TDC) used in the operation of the PAYE scheme and end of year returns should be returned to the relevant tax authorities not later than January 31st of the next year. The Employers Annual Declaration Form H1 for use in any year should be returned not later than 31st January of that year. Tax deduction cards shall continue to be treated strictly as security documents when returned to the tax office.

Only authorised officers shall endorse the cards. Employers of labour are therefore requested to familiarize themselves with the specimen signatures of the authorised officers in the relevant tax stations in the state where they operate or the Federal Capital Territory where applicable.Where the employer of labour is found operating PAYE system  with forged or fake Tax Deduction Cards, appropriate sanctions will be imposed on such employer. Such employers are also liable for prosecution  under the criminal Act of Nigeria.

D) Submission of End of Year Returns:

End of Year returns must be submitted along with Tax Deduction Cards not later than 31st January of that Year. The years' returns must show the name of the employees, total emoluments, total reliefs granted and tax paid by the employees.All evidence of Payment (reciepts) must be submitted to the tax office.

E) Remittance of PAYE Deductions

Remittances must be done within 10 days of the end of each month in other to prevent payment. A receipt must be collected by the employer for any remittance made.

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