Most employers paying workers through cash are evading tax. [Photo/citizentv.co.ke]
Most employers, especially in small companies, pay staff by cash and not through the bank. But why is this so considering banks are all over the place?When this scenario happens, just know you are definitely being cheated, and your boss is also likely to be evading taxes, which is illegal.By law, your employer is obliged to deduct a specific percentage of your monthly wages, top it up and remit the sum to the National Social Security Fund (NSSF) as your pension savings.Secondly, it is also possible that your company is evading Pay As You Earn (PAYE) by paying your wages in cash. The company knows that remitting your money through your bank account may create a paper trail which could lead Kenya Revenue Authority (KRA) and NSSF authorities to the company’s doorstep.That may explain your boss’ agitation and reluctance whenever you suggested your preference to be paid your wages through your bank account.Your employer is also likely to be maintaining two or more sets of books of accounts, such as the concocted one he/she declares to KRA and NSSF and the real ones they rely on to run the business.You are hence advised to make use of the NSSF and KRA whistle-blowing hotlines to put an end to the theft of the pension savings you are entitled to by law as an employee supplying labour to your employer.