Remittance, in payroll, is the act of actually paying over the taxes and contributions you deducted from salaries, PAYE to the state tax authority, pension to each employee's PFA, and so on, to the bodies entitled to receive them.
Deducting is only half the job. When you take ₦28,580 of PAYE out of an employee's salary, that money isn't yours, you're holding it in trust until you remit it. Deducting without remitting is one of the fastest ways for a Nigerian business to build up serious liabilities.
The main deadlines to know:
- PAYE: remit to the tax authority of the state where each employee resides (Lagos = LIRS via eTax) by the 10th of the following month. Late remittance attracts a penalty (widely cited as ₦25,000 plus 10% annual interest), and the annual employer return (Form H1) is due by 31 January.
- Pension: the 8% + 10% contributions must reach each employee's RSA within 7 working days of salary payment. Late remittance costs at least 2% of the unpaid amount per month, paid into the employee's RSA.
- NSITF: the employer's 1% by the 16th of the following month.
- NHF (opted-in employees only): monthly to the Federal Mortgage Bank.
Nigerian example: a small Abuja agency pays salaries on 28 July. Its pension remittances are due within 7 working days, and its July PAYE must reach the relevant state IRS by 10 August.
Payroll software like Kua calculates all these amounts for you, but with Kua and every competitor alike, the employer remits; no payroll tool files or pays your taxes automatically. Full details in statutory deductions in Nigeria.