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Pay-As-You-Earn (PAYE) is the primary method for collecting Personal Income Tax from employees in Nigeria. As an employer, you act as an agent for the State Internal Revenue Service (SIRS). In 2026, the Nigeria Tax Administration Act (NTAA) has introduced stricter digital filing requirements and updated the tax-free limits for your workforce.
The Employer’s Duty in 2026
Your responsibility as an employer involves three main steps: Deduct, Remit, and File. Under the 2026 reforms, you must ensure that any employee earning ₦800,000 or less annually is not charged tax. For others, the tax must be calculated progressively. For a comparison with corporate taxes, see CIT vs. PIT: What is the Difference?.
Key Deadlines to Remember
- Monthly Remittance: Must be paid by the 10th day of the following month.
- Annual Returns (Form H1): Must be filed by January 31st every year.
Missing the January 31st deadline now attracts a ₦100,000 administrative penalty for the first month. Check our Tax Penalties Guide for more. You can track all corporate duties using our Tax Compliance Checklist.
Step-by-Step Registration for New Employers
- Obtain Payer ID: Register your company on your state’s tax portal (e.g., LIRS e-Tax for Lagos).
- Upload Employee Schedule: Provide names, NINs, and gross salaries for all staff.
- Generate Payment Bill: The portal will calculate the total PAYE due based on your schedule.
Practical example: If you hire a new staff member in March 2026, you must add them to your portal schedule before the April 10th remittance deadline. For official state portals, visit LIRS e-Tax or your local NRS/SIRS website for the latest circulars.
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