As an employer in Ghana, understanding payroll taxes is essential for compliance with tax laws and maintaining good financial standing. Employers are responsible for deducting and remitting taxes from employees’ salaries, as well as making mandatory contributions to social security schemes. Failure to comply can result in penalties and legal consequences.
This guide by Accra Street Journal provides an overview of employer payroll taxes in Ghana, including key tax obligations, calculations, deadlines, and compliance tips.
1. Understanding Employer Payroll Taxes in Ghana
Employer payroll taxes in Ghana include:
- Pay As You Earn (PAYE) Tax – Deducted from employees’ salaries based on Ghana Revenue Authority (GRA) tax brackets.
- Social Security and National Insurance Trust (SSNIT) Contributions – Both employer and employee contribute toward social security.
- Other Statutory Deductions – Contributions such as the Tier 2 & Tier 3 pension schemes.
2. Pay As You Earn (PAYE) Tax
PAYE is a progressive income tax deducted at source from employees’ salaries. Employers must withhold and remit this tax to the GRA by the 15th of the following month.
PAYE Tax Rates (2024)
The tax brackets are as follows:
| Monthly Taxable Income (GHS) | Tax Rate (%) |
|---|---|
| 0 – 494 | 0% |
| 494 – 651 | 5% |
| 651 – 3,651 | 10% |
| 3,651 – 5,651 | 17.5% |
| 5,651 – 10,551 | 25% |
| Above 10,551 | 30% |
Employers must compute PAYE based on gross salary and ensure accurate deductions.
3. Social Security Contributions (SSNIT)
Employers must contribute to SSNIT on behalf of their employees. The total contribution is 18.5% of the employee’s gross salary, distributed as follows:
- Employer’s Contribution: 13%
- Employee’s Contribution: 5.5% (deducted from salary)
SSNIT contributions must be paid by the 14th of the following month to avoid penalties.
4. Tier 2 & Tier 3 Pension Schemes
Beyond SSNIT, Ghana operates a three-tier pension system:
- Tier 1 (SSNIT Contribution) – 13% employer, 5.5% employee.
- Tier 2 (Mandatory Occupational Pension Scheme) – 5% of salary paid by the employer.
- Tier 3 (Voluntary Pension Scheme) – Optional, with employer and employee contributions.
5. Employer Payroll Tax Compliance & Deadlines
| Tax Type | Due Date |
| PAYE Tax | 15th of the following month |
| SSNIT Contributions | 14th of the following month |
| Tier 2 Pension | 14th of the following month |
Late payments attract penalties, including interest charges and legal consequences.
6. How to File and Pay Payroll Taxes in Ghana
- Calculate PAYE, SSNIT, and pension contributions for each employee.
- Submit monthly PAYE tax returns through the Ghana Revenue Authority’s tax portal.
- Pay SSNIT contributions via SSNIT offices or their online payment system.
- Retain proper records for at least six years for audit purposes.
- Consult a tax professional if you need assistance with payroll tax compliance.
Frequently Asked Questions (FAQ)
1. Who is required to pay PAYE in Ghana?
Employers are responsible for deducting and remitting PAYE tax from employees’ salaries to the GRA.
2. What happens if an employer fails to remit payroll taxes?
Failure to remit payroll taxes on time can result in penalties, interest charges, and legal actions from tax authorities.
3. How can employers pay SSNIT contributions?
Employers can pay SSNIT contributions via SSNIT branches, banks, or the online SSNIT payment platform.
4. What is the penalty for late SSNIT payments?
Late SSNIT payments attract an interest charge of 3% per month on outstanding contributions.
5. Is it mandatory for small businesses to pay payroll taxes?
Yes. All businesses with employees, including small businesses, must comply with Ghana’s payroll tax regulations.
By following this guide, employers can ensure compliance with payroll tax obligations in Ghana, avoiding penalties and ensuring smooth business operations. For expert tax assistance, consider consulting a tax professional or accountant.
