Incorrect tax code - foreign worker
Hi, I have two new employees who I have used the wrong tax code on, they have paid 30% tax instead of the WHM 15% rate. Do I have to reverse their pay or can I fix it up over the next two pays? ...
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thank you.
can I submit a negative tax amount if I submit a separate payrun? because the gross amount they will earn this week wont be enought to fix up the error (however could be amended onve next tow payruns).
I incorrectly witheld $800 in tax, it should've been approx $300, so next week even if they pay $0 tax, they will still be outstanding $200
Hi JSWS,
Thanks for your post and for the detailed information. I really appreciate your patience and understanding about this issue, and I do apologize for the delayed response. Submitting a negative tax amount in a separate pay run to correct a previous tax withholding error is generally not recommended and may not align with tax regulations. In most tax systems, the correction of an over-withheld tax amount is typically handled by reducing the tax withheld in future pay runs, rather than submitting a negative tax amount for a previous period. As you mentioned, the correction can be made in the subsequent pay runs. In this case, you can reduce the tax withheld from the employee's earnings over multiple pay periods until the over-withheld amount is offset.
Please do let me know how you go on this.
Regards,
Earl
