Remittance Management

Introduction

The Remittance Management feature in Gangmates simplifies the process of statutory compliance by enabling companies to submit remittance requests to qualified agents who handle payments to government agencies on their behalf. This feature ensures timely compliance with regulatory requirements while providing transparency and control over the entire remittance process.

---

What is Remittance Management and Why It Matters?

Remittance Management is a comprehensive system that facilitates the outsourcing of statutory payments to certified agents, ensuring your company meets all regulatory obligations without the complexity of managing multiple government portals and deadlines.

Key Components:

• Statutory Contributions: PIT, NHF, ITF, NSITF, Pension, and NHIS payments

• VAT & FIRS Remittance: VAT and Stamp Duty collected from sales invoices

• Agent Network: Qualified professionals who handle payments on your behalf

• Wallet System: Secure payment processing with transparent fee structure

• Receipt Management: Digital receipts and audit trails for all transactions

Benefits of Remittance Management:

• Compliance Assurance: Never miss statutory payment deadlines

• Time Savings: Eliminate manual government portal management

• Cost Efficiency: Transparent pricing with competitive agent fees

• Audit Trail: Complete documentation for regulatory reviews

• Risk Reduction: Professional agents ensure accurate and timely payments

---

Understanding Remittance Types

Payroll Statutory Contributions

Remit employee-related statutory deductions to government agencies.

Contribution Types:

• PIT (Personal Income Tax)

• NHF (National Housing Fund)

• ITF (Industrial Training Fund)

• NSITF (Nigeria Social Insurance Trust Fund)

• Pension

• NHIS (National Health Insurance Scheme)

Important: The contributions available for remittance are automatically determined by your company's Statutory Remittance Settings. See the "Configuring Statutory Remittance Settings" section below.

Processing Modes:

Bulk Remittance

Process all statutory contributions for selected employees in a single request.

Best for:

• Monthly payroll runs

• Standard compliance submissions

• Processing multiple employees simultaneously

Features:

• Single agent fee covers all contributions

• Consolidated receipt management

• Streamlined approval process

Individual Remittance

Process specific contribution types for selected employees separately.

Best for:

• Corrections or adjustments

• Urgent single-type submissions

• Handling specific compliance requirements

Features:

• Granular control over contribution types

• Separate processing for each type

• Flexible timing for different requirements

---

VAT & FIRS Remittance (NEW)

Remit VAT and Stamp Duty collected from your sales invoices to the Federal Inland Revenue Service (FIRS).

What is VAT Remittance?

When you create sales invoices with VAT enabled, you collect Value Added Tax (7.5%) on behalf of the government. This collected VAT must be remitted to FIRS. Gangmates tracks VAT from your paid invoices and allows you to remit through the same trusted agent network.

Tax Types:

• VAT (Value Added Tax): 7.5% collected on sales invoices

• Stamp Duty: ₦50 flat fee on invoices over ₦10,000

Best for:

• Monthly VAT remittance to FIRS

• Consolidating multiple invoice taxes in one submission

• Maintaining compliance with FIRS deadlines

Features:

• Automatic tracking of VAT from paid sales invoices

• Multi-invoice selection in single remittance

• FIRS receipt upload by agent

• Prevents duplicate remittance of same invoice

Prerequisites:

• At least one paid sales invoice with VAT or Stamp Duty

• Invoice must have "Paid" status (customer completed payment)

• Tax not already submitted in a previous remittance

FIRS Deadline: VAT must be remitted by the 21st of the month following the transaction. Submit requests by the 15th to allow agent processing time.

---

Configuring Statutory Remittance Settings

Before processing payroll, your company must configure which statutory contributions apply to your employees. This is a one-time setup (or updated as needed) that determines what gets deducted from employee pay.

Navigation: Finance → Payroll → Remittance Settings → Statutory Remittance Settings

What Are Statutory Remittance Settings?

These settings define which statutory contributions your company participates in. This directly affects your employees' pay - enabled contributions are automatically deducted from employee salaries during payroll processing.

Once configured, the system automatically:

• Deducts enabled contributions from employee pay during each payroll run

• Calculates employer contributions where applicable

• Tracks deducted amounts for remittance to government agencies

Available Contribution Types

PIT (Personal Income Tax)

• State-level income tax deducted from employee salaries

• Rates vary by state

• Deducted from employee pay

NHF (National Housing Fund)

• 2.5% of basic salary

• Mandatory for employees earning above threshold

• Deducted from employee pay

ITF (Industrial Training Fund)

• 1% of annual payroll

• Applies to companies with 5+ employees or ₦50m+ turnover

• Employer contribution (not deducted from employee)

NSITF (Nigeria Social Insurance Trust Fund)

• 1% employee contribution (deducted from pay)

• 10% employer contribution

• Workplace injury and disability coverage

Pension

• 8% employee contribution (deducted from pay)

• 10% employer contribution (minimum)

• Managed through registered PFAs

NHIS (National Health Insurance Scheme)

• Health insurance contributions

• Rates vary by scheme

How to Configure Settings

1. Navigate to Finance → Payroll → Remittance Settings

2. Locate the Statutory Remittance Settings section

3. Enable or disable each contribution type based on your company's obligations

4. Enter any required details (e.g., PFA information for Pension, state for PIT)

5. Save your settings

Impact on Payroll and Remittance

• Enabled contributions: Automatically deducted from employee pay during payroll processing, then available for remittance to government

• Disabled contributions: Not deducted from employees, not available for remittance

• Changes take effect: From the next payroll run onwards (does not affect past payroll)

Important: These settings directly affect employee take-home pay. Consult with your accountant or HR team to ensure all legally required statutory contributions are enabled for your company.

---

Step-by-Step Guide: Initiating a Remittance Request

Step 1: Navigate to Remittance

1. Go to Remittances → Initiate Remittance from the main menu

2. You will land on the Remittance Request Page

Step 2: Select Remittance Type

Choose the type of remittance you want to process:

Option 1: Payroll Statutory Contributions (Default)

• For employee-related statutory deductions

• PIT, NHF, ITF, NSITF, Pension, NHIS

• Only contributions enabled in your Statutory Remittance Settings will appear

Option 2: VAT & FIRS Remittance

• For sales invoice taxes

• VAT and Stamp Duty collected from customers

Select your remittance type from the dropdown. The form will update to show relevant options.

Step 3: Select Agent and Package

Choose Agent:

• Select from qualified agents in the dropdown

• View agent profiles and ratings

• Check service availability

Select Package:

• Choose the service package

• Different packages offer varying service levels

• Agent fees are displayed automatically

Step 4: Select What to Remit

For Payroll Statutory Contributions:

Define Scope:

• All Employees: Select for company-wide processing (includes all pending contributions)

• Select Employees: Choose specific employees for targeted processing

Choose Processing Mode:

• Bulk Processing: Keep "Individual statutory contribution" unchecked. Select contributions from the dropdown, view pay periods and amounts, see total calculation automatically.

• Individual Processing: Check "Individual statutory contribution". Select specific contribution types by employee.

Note: Only contribution types enabled in your Statutory Remittance Settings (Finance → Payroll → Remittance Settings) will be available for selection.

For VAT & FIRS Remittance:

Select Invoices:

• Open the invoice selection dropdown

• View all paid invoices with pending VAT/Stamp Duty

• Each invoice displays:

  • Invoice number and customer name

  • VAT amount (7.5% of invoice)

  • Stamp Duty amount (₦50 if applicable)

  • Total tax amount

• Select one or more invoices to include

• Only paid invoices appear (unpaid invoices are not eligible)

Step 5: Review and Submit

Review Quote Summary:

• Verify contribution/tax amounts

• Check agent fee

• Confirm grand total

Wallet Balance Check:

• System automatically verifies sufficient balance

• Warnings appear for low balance situations

• Top up wallet if needed before submission

Submit Request:

1. Click "Submit Remittance Request"

2. Confirm in the popup modal

3. Review what happens next in the timeline

---

Understanding the Remittance Workflow

Stage 1: Request Submitted ⏳

Status: Under Review

What Happens:

• Request sent to selected agent for review

• Contributions/taxes marked as "under review"

• No wallet deduction yet

Your Actions:

• Monitor request status

• Add notes or comments if needed

• Wait for agent response

Stage 2: Agent Accepts & Processes 💰

Status: In Progress

What Happens:

• Immediate wallet deduction of full amount

• Principal amount paid to agent

• Agent fee held in escrow

• Agent begins processing payments to government agency

Your Actions:

• Track progress through status updates

• Receive notifications on major milestones

Stage 3: Receipt Upload 📄

Status: Pending Client Review

What Happens:

• Agent uploads payment receipts (government receipts for payroll, FIRS receipts for VAT)

• Status changes to "Pending Client Review"

• Receipts available for download

Your Actions:

• Review uploaded receipts

• Verify payment details match your request

• Approve or raise concerns

Stage 4: Final Approval ✅

Status: Complete

What Happens:

• Final approval releases agent fee from escrow

• Platform commission (5%) processed

• Net agent fee (95%) paid to agent

• Process marked as complete

Your Actions:

• Download final receipts for your records

• Update internal records

• Process complete

---

Managing Your Wallet for Remittances

Wallet Balance Requirements

Before submitting remittance requests, ensure adequate wallet balance:

Required Amount = Contribution/Tax Total + Agent Fee

Pre-Request Wallet Check

The system automatically:

• Verifies sufficient balance before submission

• Shows warnings for insufficient funds

• Prevents submission if balance too low

• Displays remaining balance after transaction

Balance Monitoring

• Green Status: Sufficient balance with comfortable margin

• Yellow Warning: Balance sufficient but low remaining funds

• Red Alert: Insufficient balance - top up required

Top-Up Options

• Automated Top-Up: Funds available within 24 hours

• Manual Top-Up: Immediate availability after admin review

For detailed wallet management, see the Wallet Management documentation.

---

Viewing and Managing Remittance Requests

Remittance Dashboard

Access your remittance history at Remittances from the sidebar.

Available Information:

• Request ID and date

• Remittance type (Payroll or VAT/FIRS)

• Agent assigned

• Status and progress

• Total amounts

• Action buttons

Available Actions

Adding Comments

1. Click on remittance request

2. Scroll to "Comments" section

3. Add notes or questions for the agent

4. Submit comment

Downloading Receipts

1. Navigate to completed remittance

2. Click "Download Receipts"

3. Save receipts for record-keeping

Raising Concerns

If you have issues with the service:

1. Click "Raise Concern" button

2. Describe the issue in detail

3. Specify desired outcome

4. Submit for internal review

---

VAT Remittance: Additional Information

Which Invoices Appear for VAT Remittance?

Only invoices meeting ALL criteria:

• Status is Paid (customer completed Flutterwave payment)

• Has VAT amount greater than zero, OR

• Has Stamp Duty amount greater than zero

• Tax has NOT been submitted in a previous remittance

Preventing Duplicate VAT Remittance

Once you submit an invoice for VAT remittance:

• The invoice will not appear in the selection dropdown again

• This prevents accidentally remitting the same tax twice

• Each invoice's VAT can only be remitted once

VAT Remittance vs Payroll Remittance

Aspect	Payroll Remittance	VAT Remittance
Source	Employee payroll deductions	Sales invoice taxes
Tax Types	PIT, NHF, ITF, NSITF, Pension, NHIS	VAT (7.5%), Stamp Duty (₦50)
Configuration	Statutory Remittance Settings	Per-invoice tax options
Selection	Employees and contribution types	Paid invoices
Recipient	Various government agencies	FIRS
Deadline	Varies by contribution type	21st of following month

Can I Combine Payroll and VAT in One Request?

No. Payroll statutory contributions and VAT/FIRS remittance are separate processes. Submit them as individual requests. This ensures:

• Clear audit trails for each type

• Proper documentation for different agencies

• Accurate tracking and reporting

---

Troubleshooting Common Issues

Insufficient Wallet Balance

Issue: Cannot submit request due to low balance

Solution:

1. Check current wallet balance

2. Calculate required amount (contributions/taxes + agent fee)

3. Top up wallet with sufficient funds

4. Retry remittance submission

Contribution Type Not Available (Payroll)

Issue: Expected contribution type doesn't appear when initiating remittance

Cause: Contribution type not enabled in Statutory Remittance Settings, so it was never deducted from employee pay

Solution:

1. Navigate to Finance → Payroll → Remittance Settings

2. Check Statutory Remittance Settings section

3. Enable the required contribution type

4. Save settings

5. Run payroll - contributions will now be deducted from employee pay

6. After payroll completes, initiate remittance for the deducted amounts

Conflicting Contributions (Payroll)

Issue: Warning icons (⚠️) appear next to contributions

Explanation: Some contribution types are already being processed individually

Solution:

• For Bulk: Only available types will be processed

• For Individual: Select different contribution types

• Review existing remittance requests

Invoice Not Appearing (VAT)

Issue: Paid invoice doesn't appear in VAT remittance selection

Possible Causes:

• Invoice status is not "Paid" (payment not completed)

• Invoice has no VAT or Stamp Duty amounts

• Invoice already submitted in a previous remittance

Solution:

1. Check invoice status in Finance → Invoices

2. Verify VAT was enabled when invoice was created

3. Check previous remittance requests for this invoice

Agent Not Responding

Issue: Request stuck in "Under Review" status

Solution:

1. Add comment asking for update

2. Wait 24-48 hours for response

3. If no response, raise concern for internal escalation

Receipt Concerns

Issue: Uploaded receipts appear incorrect

Solution:

1. Download and review receipts carefully

2. Document specific concerns

3. Use "Raise Concern" function

4. Provide detailed explanation of issues

Status Not Updating

Issue: Remittance status appears frozen

Solution:

1. Refresh the page

2. Check for system notifications

3. Contact support if issue persists

---

Best Practices for Remittance Management

Initial Setup

• Configure Settings First: Set up Statutory Remittance Settings before running payroll - this determines what gets deducted from employee pay

• Verify Contributions: Confirm all legally required contribution types are enabled for your company

• Understand Impact: Remember that enabled contributions affect employee take-home pay

• Test with Small Batch: Consider testing with a small employee group first

Planning and Scheduling

• Monthly Planning: Schedule remittances after payroll processing (for payroll) and after invoice payments received (for VAT)

• Deadline Awareness: Submit requests well before statutory deadlines

• Batch Processing: Use bulk remittances for efficiency

• VAT Timing: Submit VAT remittance by the 15th to meet FIRS deadline of 21st

Wallet Management

• Maintain Buffer: Keep extra funds for unexpected requirements

• Regular Top-ups: Schedule regular wallet top-ups

• Monitor Usage: Track spending patterns for budget planning

Documentation

• Save Receipts: Download and organize all receipts (government and FIRS)

• Track Requests: Maintain internal logs of submissions

• Audit Preparation: Keep records for regulatory reviews

Communication

• Clear Comments: Write detailed notes for agents

• Timely Responses: Respond quickly to agent queries

• Professional Tone: Maintain professional communication

Quality Control

• Review Before Submission: Double-check all details

• Verify Receipts: Carefully review uploaded receipts

• Report Issues: Promptly report any concerns

---

Frequently Asked Questions

General Questions

Q: How long does the remittance process take?

A: Typically 3-5 business days from submission to completion, depending on agent workload and government processing times.

Q: Can I cancel a remittance request?

A: Requests can only be cancelled before agent acceptance. Once processing begins, cancellation requires internal review and may involve fees.

Q: What happens if I submit duplicate requests?

A: The system prevents duplicate submissions. For payroll, conflicting contributions show warnings. For VAT, submitted invoices are automatically excluded from future selection.

Setup Questions

Q: Why don't I see any contribution types when initiating remittance?

A: Contributions must first be deducted from employee pay during payroll. If your Statutory Remittance Settings are not configured, nothing gets deducted, so there's nothing to remit. Go to Finance → Payroll → Remittance Settings and enable the required contribution types, then run payroll.

Q: Do I need to configure settings for VAT remittance?

A: No, VAT remittance works automatically based on your paid sales invoices. Only payroll contributions require Statutory Remittance Settings configuration.

Technical Questions

Q: Why can't I select certain contributions?

A: Contributions may be unavailable if they're not enabled in settings, already being processed in another request, or have been completed.

Q: Why doesn't my invoice appear in VAT remittance?

A: The invoice must be "Paid" status, have VAT or Stamp Duty amounts, and not have been previously submitted for remittance.

Q: Can I modify a request after submission?

A: Requests cannot be modified after submission. Contact the agent through comments for clarifications.

Financial Questions

Q: When is my wallet charged?

A: Your wallet is charged immediately when the agent accepts and begins processing your request.

Q: What are the fees involved?

A: Only the agent fee is charged. This varies by agent and package but is clearly displayed before submission.

Q: Can I get a refund?

A: Refunds are only available in exceptional circumstances and require internal review through the concern resolution process.

VAT-Specific Questions

Q: What is the FIRS deadline for VAT?

A: VAT must be remitted by the 21st of the month following the transaction. January invoices must be remitted by February 21st.

Q: Can I remit VAT and payroll contributions together?

A: No, they are separate remittance types. Submit them as individual requests.

Q: Do I need to remit every invoice separately?

A: No, you can select multiple invoices in one VAT remittance request.

---

Support and Contact

Getting Help

• In-App Support: Use the "Raise Concern" feature for service issues

• Technical Support: Contact [email protected] for technical problems

• Training Resources: Access additional training materials in the Help section

Escalation Process

1. First Contact: Use in-app communication features

2. Concern Resolution: Submit concerns through the platform

3. Direct Support: Email support for urgent technical issues

4. Management Escalation: For unresolved issues requiring management attention

Response Times

• Agent Responses: Within 24-48 hours

• Concern Resolution: 2-5 business days

• Technical Support: Within 24 hours

• Emergency Issues: Same business day

---

Quick Reference

First-Time Setup (Payroll Remittance)

1. Configure Statutory Remittance Settings (Finance → Payroll → Remittance Settings)

2. Run payroll - enabled contributions are deducted from employee pay

3. Ensure wallet has sufficient balance

4. Initiate remittance to submit deducted amounts to government

Remittance Types

Type	Source	Taxes/Contributions	How It Works
Payroll	Employee pay deductions	PIT, NHF, ITF, NSITF, Pension, NHIS	Settings determine deductions → Payroll deducts from pay → Remit to government
VAT & FIRS	Sales invoices	VAT (7.5%), Stamp Duty (₦50)	Invoice created with tax → Customer pays → Remit to FIRS

Remittance Flow

Create Request → Agent Reviews → Agent Accepts (Wallet Charged) → Agent Processes → Receipt Uploaded → You Approve → Complete

Status Meanings

• Under Review: Waiting for agent to review

• In Progress: Agent processing, wallet charged

• Pending Client Review: Receipts uploaded, awaiting your approval

• Complete: Approved and finalized

---

This documentation is regularly updated. For the latest information and features, always refer to the current version in your Gangmates platform.