2024 PAYE Updates: What Every Nigerian Business Owner Must Know

The Federal Inland Revenue Service (FIRS) has introduced significant changes to Nigeria's Pay-As-You-Earn (PAYE) tax system for 2024. These updates affect every business with employees and require immediate attention to ensure compliance.

Key Changes in 2024

1. Updated Tax Brackets

The new tax brackets reflect inflation adjustments and economic realities:

First ₦300,000: Tax-free (increased from ₦200,000)

Next ₦300,000: 7% tax rate

Next ₦500,000: 11% tax rate

Next ₦500,000: 15% tax rate

Next ₦1,600,000: 19% tax rate

Above ₦3,200,000: 24% tax rate

2. Minimum Tax Obligations

Businesses must now pay a minimum tax of 0.5% of gross turnover for companies with turnover above ₦25 million annually.

3. Electronic Filing Requirements

All PAYE returns must now be filed electronically through the FIRS portal. Paper submissions are no longer accepted.

Action Steps for Nigerian Businesses

Immediate Actions (Next 30 Days)

Update payroll systems with new tax brackets

Register for electronic filing on the FIRS portal

Review employee tax computations for accuracy

Train your HR team on new procedures

Ongoing Compliance

Monthly PAYE returns must be filed by the 10th of the following month

Annual reconciliation is required by January 31st

Maintain digital records for at least 6 years

How StaffNotion Helps

Our platform automatically updates with all FIRS changes, ensuring your business stays compliant without manual interventions:

✅ Automatic tax bracket updates

✅ Electronic filing integration

✅ Real-time compliance monitoring

✅ Penalty avoidance alerts

Common Mistakes to Avoid

Using outdated tax tables - Can result in ₦500K+ penalties

Late filing - Attracts 5% interest monthly

Incorrect employee classifications - Leads to underpayment issues

Poor record keeping - Creates audit complications

Need Help with PAYE Compliance?

Don't let tax compliance overwhelm your business operations. StaffNotion's automated system ensures you're always compliant with the latest FIRS requirements.

Start your free trial today and experience worry-free payroll management.

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This article is for informational purposes only and should not be considered as tax advice. Consult with a qualified tax professional for specific situations.

2024 PAYE Updates: What Every Nigerian Business Owner Must Know

2024 PAYE Updates: What Every Nigerian Business Owner Must Know

Key Changes in 2024

1. Updated Tax Brackets

2. Minimum Tax Obligations

3. Electronic Filing Requirements

Action Steps for Nigerian Businesses

Immediate Actions (Next 30 Days)

Ongoing Compliance

How StaffNotion Helps

Common Mistakes to Avoid

Need Help with PAYE Compliance?

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