Final pay PAYE

harper23

I have done a final pay for an employee with a large amount of annual leave and accrued (191 hours) which makes his final pay about 5 times more than his weekly pay. The PAYE on it is huge. Does the system think this is a normal weekly pay?

In the old payroll you could do a tax over ride to say how many weeks it was paying. Can I change the how many days we are paying part in enter pay to help the calculation?

I cannot take the huge amount of PAYE off him as it cannot be correct. 

The Inland Revenue site does not have a final pay calculator to check. 

I need to do this final pay on Friday so now it is quite urgent.

 

Jesh_D

Hi @harper23 

 

Thank you for your post.

 

Generally speaking, the PAYE amount will be higher is the amount you are paying the employee is higher due the fact that a lump sum would incur a higher tax rate. Here is a Help Article that you can refer to in order to correctly process your employees final pay: Processing a final pay. What I would recommend is seeking advice from your accounting advisor or the IRD for help with your specific final pay needs. The Department of Labour website is a good place to start.

 

 Please let us know how you get on and if you require further assistance.