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With the Nigeria Revenue Service (NRS) shifting to AI-driven monitoring in 2026, payroll audits are becoming more frequent and precise. An audit doesn’t have to be scary if your records are airtight. Use this 10-step checklist to ensure your business is ready for a ‘spot check’ from the LIRS or NRS.
The 2026 Audit Priorities
- Verify Tax-Free Threshold: Ensure no PAYE was deducted from staff earning below ₦800,000 annually.
- Rent Relief Documentation: Do you have valid receipts for every 20% rent relief claim? (See Personal Income Tax Reforms).
- NIN-TIN Linking: Are all employee Payer IDs linked to their National Identity Numbers?
- Remittance Timelines: Check that all payments were made by the 10th of each month. Late payments attract heavy interest.
- Expatriate Quotas: If you have foreign staff, are their levies and taxes up to date?
- Pension Reconciliation: Ensure the 8% employee and 10% employer contributions match your payroll.
- Non-Cash Benefits: Have you correctly valued and taxed company cars or housing?
- WHT on Directors’ Fees: Ensure 10% was deducted from all board payments.
- Annual Returns (Form H1): Confirm your Jan 31st filing was successful.
- Digital Backup: Ensure all payroll data is stored in a format compatible with the TaxPro Max portal.
For a broader view, read How FIRS/NRS Regulates Business. You can use tools like SeamlessHR for automated compliance or visit the LIRS website for audit guidelines.”