Implications of Hiring a Staff in Small Business

Hiring a staff has some implications on your small business. Hiring a staff is more than just having somebody working for or with you. I have mentioned that most of your business decisions have their own implications. Knowing the implications that are involved will help you to have a rethink of whether you are set to hiring a staff or not. Financial Implication It is assumed that your decision to hire a staff is as a result of growth in your business. But the level of growth should be able to justify the additional hand you are bringing in. By Continue ReadingImplications of Hiring a Staff in Small Business

Personal Income Tax and PAYE Calculation

How To Calculate PAYE Under Personal Income Tax Act. As a business owner, you must understand a bit about Personal Income Tax Act and how it affects your business. When you hire a staff, it is your responsibility to collect a tax form from the State Internal Revenue Service on behalf of the staff. The completed tax form will be returned to the Tax Office. It is your responsibility to withhold tax from your employee’s salary based on Pay As You Earn (PAYE) system under the Personal Income Tax Act and remit the same to the Tax office every month.  Continue ReadingPersonal Income Tax and PAYE Calculation

Tips on Staff Hiring Process for Small Business

Hiring the right staff is crucial to the success of small business. Hiring is one thing every small business owner should get right. However, depending on the type or size of your business, you may not need to hire any staff at the start up stage.  As the business begins to grow, it will get to a point that you will need additional hands to work with you. Knowing when to hire and ability to hire a right personnel is very crucial. Getting a right person can actually be a spring board for your growth. But if you get it Continue ReadingTips on Staff Hiring Process for Small Business

Company Income Tax in Nigeria

Understand How Company Income Tax is Computed in Nigeria. As a limited liability company, you are liable to pay company income tax. Any company doing business in Nigeria, whether resident (registered in Nigeria) or non resident (foreign company registered outside Nigeria) is expected to pay company income tax on profits accruing in, derived from, brought into or received in Nigeria. The company income tax rate is thirty percent. Companies with a turnover less than One Million Naira are charged at twenty percent of their assessable profit. Basis of Assessment The profits of companies are assessed on a preceding year basis. Continue ReadingCompany Income Tax in Nigeria

The Relevance of Information Technology in Small Business

Information Technology is not an option in small business; it is a must. I can say that one of the best things that have happened in this generation is the advent of Information Technology. Information Technology has made a lot of things easy for us. Some things which ordinarily would have taken years to accomplish can now be done within few hours. If you are in business, Information Technology is not an option; it has to be embraced. Nowadays, I don’t think of any business that can survive without the use of Information Technology but the degree of usage may Continue ReadingThe Relevance of Information Technology in Small Business