Every school that employs staff in Ghana deducts income tax (PAYE) for the Ghana Revenue Authority and pension contributions for SSNIT each month, and pays them over by fixed dates. Getting it wrong means penalties; getting it late means interest.
SSNIT: the pension contributions
- The staff member contributes 5.5% of basic salary, deducted from their pay.
- The school adds 13% of basic salary on top.
- Of the total 18.5%, 13.5% goes to SSNIT as Tier 1 (part of it passed on to the National Health Insurance Scheme) and 5% to the staff member’s Tier 2 occupational scheme, through the school’s chosen trustee.
PAYE: income tax
PAYE is worked out on chargeable income: basic salary plus taxable allowances, minus the staff member’s SSNIT contribution and any reliefs. Ghana uses graduated monthly tax bands set by law, which change from time to time; always use the bands in force for the month you are paying. GRA publishes them.
The monthly routine
- Confirm each staff member’s basic salary, allowances, bonus and overtime for the month.
- Work out SSNIT, chargeable income, PAYE and take-home pay.
- Print or send payslips and pay staff.
- By the 14th of the next month: pay SSNIT Tier 1 and Tier 2.
- By the 15th of the next month: file and pay PAYE to GRA.
- Keep a record of each filing and payment.
Each year GRA also expects an annual PAYE return for the year before.
What every staff record needs
Ghana Card number (also the TIN for individuals), SSNIT number, bank or MoMo details for pay, and the agreed salary. The school needs its own TIN and SSNIT employer number on every return.
How Fusadems does it
The Payroll app works out SSNIT, PAYE, take-home pay and the school’s total cost for every staff member each month, prints payslips and a payment list for the bank, and locks the month when it is approved. The GRA & SSNIT app turns that into what is due, to whom and by when, and records each filing. Read how Fusadems works out PAYE and SSNIT. Check unusual cases with your accountant or GRA.
Questions schools ask
What percentage is SSNIT in Ghana?
18.5% of basic salary: 5.5% from the employee and 13% from the employer. 13.5% goes to Tier 1 (SSNIT) and 5% to Tier 2.
When is PAYE due in Ghana?
PAYE for a month is due to GRA by the 15th of the following month.
When is SSNIT due in Ghana?
SSNIT Tier 1 and Tier 2 contributions for a month are due by the 14th of the following month.