Tax on your bonus
13th-month + bonus, instant
A lower-than-expected bank payment does not necessarily mean PAYE is wrong. First separate income tax from NSSF, SHIF, Housing Levy, HELB and other deductions. Then reproduce the tax calculation for the relevant month.
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Build a clear comparison
Use the same gross earnings, taxable benefits, pensionable pay, residence status and period as payroll. Apply supported deductions before the bands and reliefs after the calculated tax. Check for a bonus, arrears or a benefit that has increased taxable pay without increasing cash salary.
Common mistakes include using an old NSSF ceiling, treating SHIF as insurance relief, granting personal relief twice across jobs, taking both shares of an employer contribution from the employee, or ignoring an eligible documented deduction.
Ask payroll for the calculation
Send a specific query: identify the month, payslip line, amount shown and amount you calculate, and attach the supporting evidence. Ask for the taxable-pay calculation rather than just the bank-payment total. A few cents can be rounding; a repeated material difference needs investigation.
If payroll confirms an error
Request the corrected payslip and, where needed, corrected employer return and P9. Keep a record of the correction and how the difference will be refunded, credited or recovered. Do not assume editing a payslip alone changes a return already filed with KRA.
If tax was overpaid in an earlier year
Reconcile the annual return, tax credits and documentary support before making a refund or offset request through KRA’s official process. A credit balance does not mean an automatic immediate bank payment. KRA may verify the claim and account for outstanding liabilities. Check the current claim window and requirements for the particular tax period rather than relying on a promised processing time.
If payroll cannot resolve it
Use KRA’s official contact or tax-station service with the payslips, P9, calculation and correspondence. If you receive an assessment or formal decision, check the applicable objection deadline promptly; an informal support complaint should not be assumed to preserve a statutory right of objection.
Protect the evidence
Retain receipts, policy certificates and scheme statements supporting reliefs. Do not provide account passwords or one-time codes to someone offering a guaranteed refund. A genuine correction should leave an audit trail from payroll to the return and tax account.
Use the PAYE calculation guide and the deductions checklist to prepare your comparison.
First reconcile the earnings and deduction columns using our payslip reading checklist.
Sources and review date
Reviewed on 21 October 2026. Use the rules for the period being calculated; historical payslips may use different limits.