Final pay PAYE

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harper23
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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.

 

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Jesh_D
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Re: Final pay PAYE

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.

Kind regards,
Jesh

MYOB Community Support

jenniek
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Re: Final pay PAYE

Hi @harper23 

There was a change to the law. All final pays are now taxed at secondary tax - excluding any actual hours worked.

Regards,
Jennie Kingma
JK Business Systems Ltd, Hamilton, NZ
Email: jennie@jkbusiness.co.nz

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