Paluma Payroll System

Executive Summary - February 2026

1. SYSTEM MODULES OVERVIEW
# Module Description Key Features
1 Staff Registry Employee database with statutory info Bank details, KRA PIN, NSSF, ID
2 Earnings Engine Cadre-specific calculations 4 calculation types, auto-commission
3 Deductions Engine Statutory & other deductions SHA, NSSF, PAYE, Housing, NITA, Advances
4 Overtime Manager Normal (1.5x) & Special (3.0x) Hour-based calculation
5 Leave Manager Approval workflow & allowances Days tracking, zero-pay allowances
6 Advances & Allowances Request/approval system Requested vs Approved amounts
7 Payroll Processing 4-stage workflow Draft → Process → Approve → Lock
8 Bank Schedules Payment letters per bank PDF/Excel/CSV generation, professional format
9 Statutory Schedules 5 authority payment schedules SHA, NSSF, PAYE, NITA, Housing Levy
10 Reports & Analytics 9 comprehensive reports Reconciliation, Control Account, Master
11 Payslips Professional A4 payslips Individual/bulk, YTD summary
12 User Management Role-based access Admin, Manager, Viewer, Audit logs
2. EARNINGS BREAKDOWN BY CADRE
A. CSA (Customer Service Attendant) - Sample: John Kamau, Basic Pay: KES 20,000
Component Formula Example Calculation
Lubes Commission Capacity × Qty × Rate(3) 85L × KES 3 = KES 255
Other Categories Sales × 1.5% KES 823,000 × 0.015 = KES 12,345
Fuel Commission Rank 1: 2,500 | Rank 2: 1,000 Rank 2 = KES 1,000
Supervisor Appraisal Rank 1: 2,500 | Rank 2: 1,000 Rank 1 = KES 2,500
GROSS PAY (Basic + Commissions) 20,000 + 255 + 12,345 + 1,000 + 2,500 = KES 36,100
B. ServiceBay - Sample: James Omondi, Basic Pay: KES 0 (Zero)
Component Formula Example Calculation
Lubes Capacity × Qty × 4.5 300L × 4.5 = KES 1,350
Filters Qty × 4.5 90 × 4.5 = KES 405
CC Change Jobs × 15 8 × 15 = KES 120
Labour Class A Invoices(<5.1L) × 150 × 0.25 20 × 150 × 0.25 = KES 1,125
Labour Class B Invoices(>5L) × 200 × 0.25 30 × 200 × 0.25 = KES 1,500
Labour Class C CC Change Sales × 25% 8,500 × 0.25 = KES 2,125
Labour Class D Greasing Sales × 25% 4,200 × 0.25 = KES 1,050
Extra Hours (Hours ÷ 8) × 200 (32 ÷ 8) × 200 = KES 800
GROSS PAY (All Commissions) 1,350 + 405 + 120 + 1,125 + 1,500 + 2,125 + 1,050 + 800 = KES 8,475
C. CarWash - Sample: Sarah Achieng, Basic Pay: KES 0 (Zero)
Labour 100 jobs × 30 3,000
Collection 12,000 × 5% 600
Extra Hours (Hours ÷ 8) × 200 (40 ÷ 8) × 200 = KES 1,000
GROSS PAY (All Commissions) 3,000 + 600 + 1,000 = KES 4,600
D. Office - Sample: Grace Njeri, Basic: KES 21,000
Basic Pay KES 21,000
Allowances Variable (if any)
GROSS PAY 21,000
E. Overtime (All Cadres) - Sample: Grace Njeri
Hourly Rate = Basic Pay ÷ Days ÷ 11 = 21,000 ÷ 31 ÷ 11 = KES 61.58
Normal OT: 61.58 × 1.5 × 12hrs = KES 1,108.44
Special OT: 61.58 × 3.0 × 8hrs = KES 1,477.92
3. STATUTORY DEDUCTIONS (Kenya Tax System)

Sample: John Kamau (CSA) - Gross Pay: KES 36,100

Deduction Formula Calculation
A. SHA (2.75%) Gross Pay × 0.0275 36,100 × 0.0275 = KES 992.75
B. NSSF (6%, Max 2,160) MIN(Gross × 0.06, 2160) 36,100 × 0.06 = 2,166, Capped = KES 2,160
C. PAYE (Progressive) Tax on (Gross - NSSF) Taxable: 36,100 - 2,160 = 33,940
• 0-24,000 @ 10% = 2,400
• 24,001-32,333 @ 25% = 2,083
• 32,334-33,940 @ 30% = 482
• Less Relief (2,400)
= KES 2,565
D. Housing Levy (1.5%) Gross Pay × 0.015 36,100 × 0.015 = KES 541.50
E. NITA (Fixed) KES 50 per employee KES 50.00
TOTAL STATUTORY DEDUCTIONS KES 6,309.25
4. OTHER DEDUCTIONS
Penalties Late arrivals, violations: KES 500
Advance Payments Recovery of approved amount (not requested): KES 5,000
Shorts Cash register shortages: KES 350
TOTAL OTHER DEDUCTIONS KES 5,850
5. COMPLETE PAYSLIP EXAMPLE - John Kamau (CSA)
EARNINGS
Basic Pay 20,000.00
Other Earnings:
Lubes Commission 255.00
Other Categories 12,345.00
Fuel (Rank 2) 1,000.00
Appraisal (Rank 1) 2,500.00
GROSS PAY 36,100.00
DEDUCTIONS
Statutory:
SHA 992.75
NSSF 2,160.00
PAYE 2,565.00
Housing Levy 541.50
NITA 50.00
Other:
Penalties 500.00
Advance 5,000.00
Shorts 350.00
TOTAL 12,159.25

NET PAY: KES 23,940.75

6. PAYROLL RECONCILIATION (Sample Month)

Formula: Gross Pay - (Statutory + Other Deductions) = Net Pay

Component Amount (KES) %
A. EARNINGS
Basic Pay (30 staff) 650,000.00 70.5%
Other Earnings 185,400.00 20.1%
Overtime 45,200.00 4.9%
Leave & Allowances 41,400.00 4.5%
GROSS PAYROLL 922,000.00 100%
B. STATUTORY DEDUCTIONS
SHA (2.75%) 25,355.00 2.75%
NSSF (6%, capped) 52,140.00 5.65%
PAYE (Progressive) 68,420.00 7.42%
Housing Levy (1.5%) 13,830.00 1.50%
NITA (50 × 30) 1,500.00 0.16%
Total Statutory 161,245.00 17.48%
C. OTHER DEDUCTIONS
Penalties 3,450.00 0.37%
Advances 28,500.00 3.09%
Shorts 4,820.00 0.52%
Total Other 36,770.00 3.99%
TOTAL DEDUCTIONS 198,015.00 21.47%
NET PAYROLL 723,985.00 78.53%
Verification: 922,000 - 198,015 = 723,985 ✓ BALANCED
7. PAYROLL CONTROL ACCOUNT (Double-Entry View)
DEBIT (Expenses)
Basic Pay 650,000.00
Other Earnings 185,400.00
Overtime 45,200.00
Leave & Allowances 41,400.00
Payroll Expense 922,000.00
CREDIT (Liabilities)
SHA Payable 25,355.00
NSSF Payable 52,140.00
PAYE Payable 68,420.00
Housing Levy Payable 13,830.00
NITA Payable 1,500.00
Penalties/Advances/Shorts 36,770.00
Staff Salaries Payable 723,985.00
Total Liabilities 922,000.00
Journal Entries
Entry Account Debit Credit
1 Payroll Expense 922,000.00 -
Various Liabilities (SHA, NSSF, etc.) - 198,015.00
Staff Salaries Payable - 723,985.00
2 Staff Salaries Payable 723,985.00 -
Cash/Bank - 723,985.00
Payment Schedule to Authorities
Authority Amount (KES) Due Date
SHA (NHIF) 25,355.00 9th of next month
NSSF 52,140.00 15th of next month
KRA (PAYE) 68,420.00 9th of next month
Housing Levy 13,830.00 9th of next month
NITA 1,500.00 Monthly
TOTAL 161,245.00
8. PAYROLL PROCESSING WORKFLOW
Stage Actions Who Can Access Status
1. DRAFT • Create payroll period
• Add staff
• Edit freely 		Admin Fully Editable
2. PROCESS • Run calculations
• Generate all figures
• Review accuracy 		Admin Calculated
3. APPROVE • Final verification
• Generate reports
• Create payslips 		Admin, Manager Approved
4. LOCK • Permanent record
• Generate all outputs
• Complete audit trail 		Admin Only Locked (No Edit)
Workflow Protection:
• Multi-stage approval prevents accidental changes
• Each stage can be reverted to previous (except Lock)
• Locked payrolls cannot be altered - permanent audit trail
• All actions logged with user, timestamp, and changes made
9. KEY SYSTEM BENEFITS
Time Savings
90%
5 days → 4 hours
Accuracy
99.9%
Automated calculations
Compliance
100%
All Kenya tax laws
Features Summary
✓ 4 Cadre-specific calculation engines ✓ 5 Statutory deduction schedules
✓ 4-Class ServiceBay labour system ✓ Bank payment schedules with PDF/Excel/CSV
✓ Top-2 ranking bonuses (Fuel & Appraisal) ✓ Professional A4 payslips
✓ Normal & Special overtime (1.5x & 3.0x) ✓ Payroll reconciliation reports
✓ Leave management with allowances ✓ Control account with journal entries
✓ Advance approval workflow ✓ Complete audit trail

KEY AUTOMATION POINTS (QuickBooks Integration)

COST: KES 17,000 Per Station * 4 = KES 68,000

One-time payment | No recurring fees

Comptracks Systems | Business Management Solutions | +254 757 859767| systems@comptrackssystems.com
Professional Payroll • Inventory • POS • Custom Development