Payroll FAQs

Managing payroll involves more than simply paying employees. From tax compliance and pension administration to statutory reporting and data security, businesses often have questions about how payroll works in practice. Below are answers to some of the most common payroll questions we receive from clients.

Bonuses, overtime, commissions, and other variable payments are generally treated as taxable employment income and are subject to Pay As You Earn (PAYE) tax.

However, certain concessions may apply:

• Overtime paid to employees earning up to GHS 1,500 per month may qualify for reduced tax rates.
• Overtime paid to higher-income employees is taxed at the applicable PAYE rate.
• Bonuses of up to 15% of an employee's annual basic salary are subject to a final withholding tax of 5%.
• Any bonus amount exceeding the 15% threshold is added to employment income and taxed under PAYE.

Our payroll specialists handle all calculations, deductions, reporting, and statutory filings, requiring only the relevant payroll information from clients.

2. Can payroll statutory liabilities be paid in foreign currency? 

No. Statutory payroll obligations in Ghana, including taxes and pension contributions, must be settled in Ghana Cedis (GHS) as required by the relevant authorities.

Where payments originate from foreign currency accounts, the applicable exchange rate is applied by the banking institution during conversion.

Our team can advise on foreign exchange considerations that may impact payment timelines and planning.

3. Can employee salaries be paid in foreign currency? 

Yes. Employee salaries may be paid in foreign currency, particularly for expatriate employees or where foreign currency remuneration is specified within the employment contract.

Financial institutions may request supporting documentation before processing such payments. We recommend confirming specific requirements directly with your bank. 

4. What is required before pension contributions can be processed?

Before pension contributions can be submitted, the following requirements must be met:

• Employer registration with the applicable pension schemes
• Employees possess valid pension identification numbers or Ghana Cards
• Payroll records are properly established and verified
• Monthly payroll has been finalized to determine pensionable earnings

Our team reviews all information received to ensure contributions are accurately calculated and remitted on time.

5. What happens to an employee’s Tier 3 pension when they leave the organization? Can it be transferred to another trustee?

An employee's Tier 3 pension remains their personal benefit after leaving employment.

In most cases, the accumulated funds are transferred into a personal retirement account. Subject to pension regulations and trustee requirements, employees may also be able to transfer their Tier 3 benefits to another approved trustee.

We assist clients and employees throughout the transfer process and provide guidance on the required documentation.

6. Can payroll be processed without client approval? 

No. Payroll processing only commences after receiving approved instructions from the client, in accordance with agreed payroll procedures.

This ensures that all employee information, adjustments, and payments are accurate before payroll is finalized.

7. How are payroll queries, discrepancies, or adjustments handled?

We take payroll processing accuracy seriously.

Any payroll queries, discrepancies, or adjustment requests are promptly reviewed and resolved through established payroll review procedures. Necessary corrections are processed in line with payroll timelines and compliance requirements.

8. What are your payroll processing cut-off dates? 

Payroll cut-off dates are agreed individually with each client based on their payroll calendar, reporting requirements, and payment schedules.

We work closely with clients to establish clear deadlines and communicate them in advance to ensure timely payroll processing.

9. What information is required for monthly payroll processing? 

To process payroll accurately each month, clients typically provide:

• Employee master data
• Salary and compensation information
• Approved salary changes
• New hire and termination information
• Overtime, bonuses, commissions, and other variable pay items
• Relevant statutory information

Our team validates all information received and advises clients on supporting documentation requirements.

10. How are salary changes and new employees added to payroll?

Payroll updates are processed based on approved client instructions.

Whether the change involves a salary adjustment, promotion, allowance revision, or onboarding a new employee, our team updates and validates the information before including it in the relevant payroll cycle. 

11. Can statutory remittance evidence be provided for individual employees? 

Statutory taxes and pension contributions are generally remitted in bulk to the relevant authorities.

As a result, payment confirmations are typically available only at a consolidated employer level. Employees seeking individual contribution records may need to obtain statements directly from the relevant authority.

We can guide clients on available documentation and the appropriate channels for accessing employee-specific records.

12. How is payroll and client data protected? 

Protecting client data is a critical part of our payroll service.

We utilise secure systems, restricted-access controls, and encrypted data handling processes to safeguard payroll information. Local data storage is limited in accordance with internal security policies to help maintain confidentiality, integrity, and compliance. 

13. What reports and documents are provided from payroll processing? 

As part of our payroll services, clients receive a range of payroll outputs, including:

• Payroll summary reports
• Employee payslips
• Tax and statutory schedules
• Pension contribution reports
• Other compliance-related documentation

These reports support management reporting, audit requirements, and regulatory compliance.

14. What happens if payroll information is submitted late? 

Late submission of payroll information may affect payroll processing timelines and statutory filing deadlines.

While we make every effort to minimise disruption, timely submission of payroll data remains essential for accurate processing and compliance.

We encourage clients to adhere to agreed payroll schedules to avoid delays.

15. What are the risks of payroll non-compliance? 

Failure to comply with payroll regulations can expose organisations to:

• Financial penalties and interest charges
• Regulatory investigations and scrutiny
• Employee disputes and reputational damage
• Delays in statutory filings and remittances

Our payroll team helps organisations mitigate these risks through accurate payroll processing, timely statutory filings, and ongoing monitoring of changes in tax and pension regulations.

Need Payroll Support?

Managing payroll can be complex, particularly when navigating tax regulations, pension requirements, statutory filings, and employee queries. Our experienced payroll professionals help businesses streamline payroll processes, maintain compliance, and ensure employees are paid accurately and on time.

Contact our team to learn how our payroll services can support your organisation.