Kenya | Maintaining The Official Interest Rate And Loan Deductions

With the rapid changes in a complex economic climate, PaySpace has identified the necessity of flexibility when setting economic indicators on the payroll. Users must define the interest rate that will be used in the fringe benefit calculation on low/no-interest loans.

Steps to follow when adding a Loan Deduction

1. Process the Official Interest rate (Config > Basic Settings > General Company > Custom Forms)
      Example:

      

2. Process the Loan Deduction and relevant details (Employee > Payroll Processing > Recurring Payroll Components)

3. Check the Loan Fringe Benefit calculation (Other Actions > Calculation Breakdown)

4. Check the Corporate Tax calculation (Tax code COFBTAX) which should be COFBLOAN * 30% (Other Actions > Calculation Breakdown)

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