Negative gross pay generating tax refund

SUGGESTED

Hello,

I am trying to correct an employees overpayment after they have left. When processing a negative to correct the gross figure, I am entering a negative net advance to offset this as the employee has now paid this back so it should take the net back to zero but Sage is generating a tax refund of 50% of the negative gross? I know I will probably have to rollback to the last period where they actually receive enough pay to offset this deduction but I'd really like to know why Sage is generating this 50% tax refund when the employee has never paid any tax during their employment with us. 

Thanks!

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    SUGGESTED

    Hi Anthony,

    Thanks for using Sage City, and my apologies for the delay in reply.

    In Sage 50 Payroll, rather than using negative figures to correct an overpayment, we would recommend making deductions instead.  The tax refund is being generated as the software is not designed to work with negative pay.

    If an employee has left the business but in effect owes the business money, the following article explains how to process: An employee has left but owes you money >

    I hope this helps, if it does, please click Verify Answer.

    Regards,

    Andy
    Sage UKI

Reply
  • 0
    SUGGESTED

    Hi Anthony,

    Thanks for using Sage City, and my apologies for the delay in reply.

    In Sage 50 Payroll, rather than using negative figures to correct an overpayment, we would recommend making deductions instead.  The tax refund is being generated as the software is not designed to work with negative pay.

    If an employee has left the business but in effect owes the business money, the following article explains how to process: An employee has left but owes you money >

    I hope this helps, if it does, please click Verify Answer.

    Regards,

    Andy
    Sage UKI

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