Common Payroll Mistakes Employers Make
Payroll • Published May 02, 2025
Common Payroll Mistakes Employers Make

Payroll is one of the most sensitive operational functions in any organization. Errors in statutory deductions or late filings result in severe financial penalties from the Tanzania Revenue Authority (TRA) and social security funds.

Key Takeaways




1. Incorrect PAYE & Tax Bracket Calculations
TRA updates tax bands periodically. Miscalculating monthly PAYE deductions or omitting taxable fringe benefits can lead to heavy interest penalties during tax audits.
2. Late Submission of Statutory Deductions
Submissions for NSSF, WCF (Workers Compensation Fund), and SDL (Skills Development Levy) must be remitted promptly. Late payments incur automatic monthly compounding interest penalties.
3. Overlooking End-of-Service & Accrued Leave Liabilities
Failing to account for accrued annual leave and severance pay in financial balances creates unexpected financial strain during staff exits.
Summary & Recommendations
Outsourcing your payroll function eliminates calculation errors and guarantees 100% compliance. Talk to Devine Wealth HR Solutions' payroll experts today.
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