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Monthly Payroll Runs & Statutory Reporting

This guide outlines how to process monthly salary runs, distribute payslips, and generate Kenyan statutory returns.

Processing a Monthly Payroll Run

  1. Navigate to Payroll -> Payroll Runs.
  2. Click New to create a new batch.
  3. Select the Month and Year for the processing cycle.
  4. Click Compute Payslips. The engine will iterate across all active employees, pull recurring allowances and deductions, and calculate statutory items (PAYE, SHIF, Housing Levy, NSSF, NITA).
  5. Review the summary figures:
  6. Total Gross Wages
  7. Total Employee Deductions (PAYE, SHIF, Housing Levy, NSSF)
  8. Total Employer Liabilities (Housing Levy, NSSF matching, NITA)
  9. Net Salary Payable
  10. Click Validate & Post. This action locks the run and creates the corresponding double-entry accounting journal entry.

Payslip Distribution

To deliver payslips to your workforce: - Click Email Payslips from the validated payroll run. - Odoo automatically attaches password-protected or signed PDF payslips and sends them to each employee's registered work email address.

Statutory Returns & Exports

From the validated payroll run view, click the export action button to produce filing documents:

1. KRA iTax Unified Monthly Return CSV

Generates the exact CSV structure required for upload onto the KRA iTax portal for monthly PAYE returns.

2. SHIF Monthly Contribution Schedule

Exports the employee and employer SHIF contribution file matching the Social Health Authority portal format.

3. NSSF Monthly Contribution Return

Generates the standard NSSF monthly return file formatted for the NSSF e-Service portal.

4. Housing Levy Monthly Return

Generates the Affordable Housing Levy declaration schedule required by KRA.

5. Annual P9A Tax Deduction Cards

At year-end, navigate to Payroll -> Reports -> P9A Tax Cards. Select the tax year and click Generate P9A Cards to produce official KRA P9A tax deduction forms for all staff.

Bulk Salary Disbursements

M-Pesa B2C Salary Export

From the payroll run, click Export M-Pesa B2C. This outputs a formatted CSV compatible with Safaricom M-Pesa B2C bulk payment portals, containing employee phone numbers, transaction amounts, and company account numbers.

Commercial Bank Advice

Click Export Bank Advice to download an Excel or CSV transfer schedule formatted for commercial bank bulk EFT and RTGS payroll uploads.