Hey Community 

Struggling to balance an employee's PAYE or wondering why it's calculating differently than expected? Here is a quick guide to help you troubleshoot in Sage Business Cloud Payroll

1. Common Causes for Incorrect PAYE

If your PAYE seems too high or too low, check these common issues:

• Incorrect IRP5 Start Date: Adding an employee late but using an old start date, or using a partial period start date with a full basic salary, will skew the annual average and inflate tax.
• Incorrect Tax Status: Ensure the correct method is selected under Employee > Employee details. (e.g., Statutory Tables use Average Tax, Periodic is a flat 25%, and Independent Contractors aren't taxed).

Read more: Common causes for PAYE calculating incorrectly

2. How to View Your PAYE Calculation

Tax is calculated on an annual average (year-to-date taxable remuneration). To see the exact breakdown:

1. Go to Employee > Employee details.
2. Select the employee and click Payslip.
3. Click View tax calculation.

Read more: How to view your PAYE Calculation (step-by-step)

3. Which Fields Impact the PAYE Calculation?

The Tax Screen consolidates all information used for the PAYE calculation (payment cycle, release numbers, etc.). To view it:

1. Go to Payroll > Payslip Screen.
2. Select the employee.
3. Type TAX in the Route To block.

Read more: Which fields impact the PAYE Calculation

Note: Always review the detailed tax calculation against your own manual calculation or consult your tax practitioner.

Nteboheleng William Madibo 

Sage Country Community Lead AME