The filing of the Employers’ Annual Returns has been extended – by the Lagos Internal Revenue Service (LIRS) – to February 14, 2021, from its initial date of January 31.
The development was disclosed by the Executive Chairman of the LIRS Ayodele Subair, in a statement.
He stated that the decision to extend the filing date was reached after weighing the impact of the COVID-19 pandemic on taxpayers.
He urged taxpayers who find it difficult to file their annual report to reach out to “specially designated” staff at one of its tax stations.
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Subair said, “We implore taxpayers with difficulties in filing of their annual returns to seek assistance with specially designated staff at our tax stations or call our customer care representatives.
“Further updates on our business operations and alternative payment platforms of the service can be obtained by visiting the LIRS website, and its various social media platforms.”
What is the Employers’ Annual Return?
Employers, as enshrined in the Personal Income Tax Act, Cap P8 LFN 2011 (as amended), are to file a return with tax authorities showing earnings and Pay As You Earn (PAYE) tax of employees in the previous year.
How do employers go about doing this?
You gather the payroll report for every month or any one-off payments. You detail activities from January to December; or from the first day of hire.
What you do next is to check the total amount on PAYE tax receipts against the tax you pay monthly, then adjust accordingly.
You merge each employee’s monthly income and the tax paid into yearly numbers.
The PAYE tax then becomes the amount you have set for a yearly figure. Then you compare the numbers with the monthly PAYE tax. If you owe any outstanding tax, you would need to pay it to a tax authority.
