Secondary Employee Definition:
In Kenya you can work for several employers concurrently. In the first employment you are regarded as primary employee and the other(s) as secondary employee. (Ref: @KRACare on Twitter)
Limitations:
1. Taxed At Flat Rate Using The Highest Rate (35% from July 2023)
Secondary employees taxed at a flat rate of 35%. (Ref: @KRACare on Twitter)
2. No Tax Relief
Individuals serving several employers qualify for personal relief from only one employer (i.e., main employment) (Ref: PAYE Guide 17(a), Page 21)
Other tax reliefs should be deducted from the primary employer salary: Insurance, mortgage, affordable housing scheme, pension.
iTax Enforcement
When filing returns on iTax, only the first employer will be recognized as primary employer, the other employers returns will pick the rate for secondary employer, even if the employee is not indicated as secondary in the return.
TANZANIA REVENUE AUTHORITY (TRA) on Secondary Employment:
(KRA doesn’t seem to have this definition online. This is borrowed from TRA which is very clear – TRA web page)
Secondary Employment
When a person is employed in more than one employment position then employment positions selected by an employee to be regarded as not the main source of income are called secondary employments.
All employers are supposed to withhold income tax but secondary employers are required to withhold in different manner from primary employer.
Responsibility of an employee with secondary employment:
– To select, among employment positions, which one will be a primary employment and the other ones are secondary employments.
– to timely notify a primary employer and other employers that are the employee’s secondary employers.
Responsibility of the employer:
– To withhold tax at the highest rate of the individual income tax rates applicable.
– Enquire all employees, at a minimum of six-month period intervals, whether the employment is a secondary employment or not.