Final pay PAYE
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.
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.
