Top Features of Employer of Record platform in Kenya

As businesses continue to expand their operations into international markets, managing HR and payroll functions in compliance with local laws becomes increasingly complex. In Kenya, companies can streamline these tasks by leveraging an Employer of Record (EOR) platform. These platforms offer robust features that simplify payroll processing, HR management, and time attendance tracking—making it easier for businesses to comply with Kenyan labor laws while focusing on core activities. In this article, we explore the top features of an Employer of Record platform in Kenya and how it can benefit your business.

The right provider, offers a comprehensive platform designed to meet the unique needs of businesses in Kenya. Through its specialized features, companies can efficiently manage payroll, HR functions, and attendance, ensuring compliance with Kenyan labor regulations. Let’s take a closer look at some of the key features that make an EOR platform indispensable.

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Feature-Rich Payroll Software for Kenyan Businesses

Managing payroll in Kenya requires dealing with various regulatory frameworks such as PAYE (Pay As You Earn), NSSF (National Social Security Fund), and NHIF (National Hospital Insurance Fund). Top payroll softwares makes this easy by automating statutory deductions and tax filings, ensuring your business remains compliant with local laws.

• KRA iTax Integration: The software generates P9, P10, and P10A forms required by the Kenya Revenue Authority (KRA) for tax filing and iTax submissions. This saves time by automating manual processes and reducing the likelihood of errors in tax returns.
• NHIF and NSSF Reporting: The system generates reports in the formats required by the NHIF and NSSF, ensuring that contributions are filed on time and in compliance with Kenyan law.
• Mass Payslip Emailing: One of the standout features is the ability to email payslips to all employees with a single click. The payslips are password-protected, providing security and easy access for employees.
• Multi-Currency Payroll Processing: With businesses increasingly operating across borders, multi-currency payroll processing is critical. The right provider platform allows businesses to handle payments in different currencies with editable exchange rates, making it easier to manage an international workforce.

Customizable Payroll Management

Kenyan businesses often have diverse employee types, including permanent, casual, and contract workers. The right provider platform allows companies to tailor their payroll systems to these various employment types. Features include:

• Support for Multiple Employment Types: Whether it’s permanent employees, casual workers, consultants, or interns, the platform can handle the complexities of each type, ensuring accurate salary and benefits management.
• Editable Earnings and Deductions: Businesses can customize earnings and deductions according to their compensation structures, including allowances and non-cash benefits like housing.
• Advanced Commission and Allowance Calculations: Whether you are calculating commissions based on complex formulas or simple percentages, the platform supports various scenarios. This feature ensures that sales teams and employees earning bonuses or commissions are paid accurately.
• Automated Loans and Advance Pay Tracking: With an automated loan-monitoring system, businesses can track loans issued to employees, including low-interest loans. The platform also has a dedicated section for tracking advance payments, which can be paid in installments.

Employee Self-Service Portal

Employee self-service is a key feature in modern HR systems, allowing employees to take control of their personal data and interactions with HR.

• Pay Slip and Tax Form Access: Employees can log in to their self-service accounts to print or view their pay slips, P9A, and P9B tax deduction cards. This autonomy reduces the administrative burden on HR departments.
• Submit Overtime, Leave, and Expenses: Employees can submit overtime hours, leave requests, and expense claims directly through the self-service portal. This paperless process not only saves time but also ensures all requests are tracked and approved efficiently.
• Email-Based Notifications and Approvals: HR teams and managers receive email notifications for approval of employee requests, ensuring that processes like leave and overtime are handled promptly.

HR Management and Compliance

Comprehensive HR Management Tools

EOR platform offers a wide range of HR management tools that ensure every stage of the employee lifecycle is managed efficiently.

• Recruitment and Contract Tracking: The recruitment module helps businesses manage candidate tracking, while the probation and contract tracking features ensure that employee agreements and transitions are monitored effectively.
• Appraisals and Disciplinary Records: Performance appraisals can be conducted and tracked through the platform, providing a clear record of employee performance. Disciplinary actions can also be documented and stored securely for future reference.
• Document Management: Businesses can link essential documents, such as contracts and certifications, directly to employee profiles. The system supports various file formats, including PDFs.
• Employment History and Skills Tracking: Keeping a record of employment history and skills is made easy with this platform. This ensures that HR departments have a complete understanding of employee capabilities and career progression.

Statutory Compliance Made Simple

EOR platform simplifies statutory compliance in Kenya, helping businesses navigate the complex legal landscape.

• Pre-set Statutory Deductions: Pre-set statutory deductions for NHIF, NSSF, and PAYE (Income Tax) are included in the system, reducing the risk of compliance errors. These deductions are also editable, allowing businesses to adjust as regulations change.
• Fringe Benefit and Gratuity Calculations: The platform handles complex calculations related to fringe benefits, severance, housing levies, and other statutory payments, ensuring compliance with Kenyan laws.

Leave Management

Managing employee leave is crucial, especially for businesses with large workforces.

• Multiple Leave Types: The platform supports various leave types such as annual leave, sick leave, maternity leave, and paternity leave. Each type can be customized according to the company’s policies.
• Approval Workflow: A user-defined approval workflow process ensures that leave requests are properly managed. Email notifications help streamline approvals, and managers can easily track leave balances and entitlements.
• Comprehensive Leave Reports: The system generates detailed leave reports, providing insights into employee leave trends and balances.

Time and Attendance Tracking

Automated Time and Attendance Management

Time and attendance tracking is essential for accurate payroll processing, especially for companies with shift workers or flexible work arrangements.

• Daily Hours and Absenteeism: The platform automatically tracks daily hours worked, lateness, absenteeism, and overtime. This data is seamlessly integrated into payroll to ensure employees are paid correctly for the time worked.
• Shift Rotations and Multiple Locations: Businesses can manage complex work schedules across multiple locations. The platform supports various timetables and shift rotations, ensuring that employee attendance is tracked accurately.
• Export Attendance Data to Payroll: The time attendance data is directly exported to the payroll module, ensuring that all hours worked are accounted for during payroll processing.

Advanced Reporting and Analytics

Customizable and Intuitive Payroll Reports

Accurate reporting is essential for compliance and decision-making.The right provider platform provides a range of reporting options, including:

• Custom Reports: Generate reports on specific payroll data, such as basic pay, net pay, gross pay, and deductions. Reports can be customized according to the time range and data points you need.
• KRA and NHIF Reports: The platform generates KRA P9, P10, and P10A reports and NHIF contribution reports, which are essential for statutory compliance.
• Payroll General Ledger: The system automatically generates payroll general ledgers for journal entries, simplifying accounting processes.

Conclusion

An Employer of Record platform is an indispensable tool for businesses operating in Kenya. It simplifies the complexities of payroll, HR, and compliance, allowing businesses to focus on their core operations. Mercans’ cloud-based solution offers comprehensive features, including multi-currency payroll processing, employee self-service, time and attendance management, and customizable reports. By automating these processes, businesses can ensure compliance with Kenyan labor laws and improve operational efficiency.

Whether you’re a local company or a multinational expanding into Kenya, Mercans’ EOR platform offers the tools you need to stay compliant and efficiently manage your workforce.