No PAYE tax amount is being calculated.

Legacy KB ID: 5116

Question

Why isn’t PAYE tax being calculated on some of my employees?  The payroll items appear to be properly configured and the correct PAYE tax code has been assigned in the employee record. 

Answer

Ensure that the tax tracking assignment on the payroll items is an allowed type for that payroll item.  

The Issue

If a payroll item is assigned a tax tracking type that is inconsistent with that item, then neither PAYE tax nor Student Loan amount will be deducted.

For instance, if you assign a regular wage item a tax tracking type like Redundancy30, rather than the 30% tax being calculated, no tax is calculated. 

Workaround

Ensure that the tax tracking assignment on the payroll items is an allowed type for that payroll item.   

Then, in the employee record, delete the payroll item and re-enter it to load in the new configuration.

To correct the last pay that has not yet been paid to the employee, open the pay, unlock it, delete and re-enter the payroll item to calculate the correct PAYE tax. 

Need more help?

Ask the Reckon Community at: https://community.reckon.com/reckon.