Good day Annalize

No need for the change to normal tax.

Please see the explanation for tax on separate payslips.

How does Tax calculate on each earning on  Separate Payslips?

This article is a guide on how tax calculates on each earning on separate payslips on Sage 200c VIP, Sage Classic, Sage Premier and Sage Business Cloud Payroll Professional

SolutionUrlSS https://za-kb.sage.com/portal/app/portlets/results/viewsolution.jsp?solutionid=201119123221750

Good day Annalize

No need for the change to normal tax.

Please see the explanation for tax on separate payslips.

How does Tax calculate on each earning on  Separate Payslips?

This article is a guide on how tax calculates on each earning on separate payslips on Sage 200c VIP, Sage Classic, Sage Premier and Sage Business Cloud Payroll Professional

SolutionUrlSS https://za-kb.sage.com/portal/app/portlets/results/viewsolution.jsp?solutionid=201119123221750

Hi Angelique,

Thank you for the reply.

Bit confused as couple of months ago I spoke telephonically to a Sage consultant and was advised whenever using separate Payslips you must change to Normal tax as at that point there was a lot of negative tax and thus the advise, bear in mind that that particular pay run was only for leave payment.

On the advise given is this only because it was a bonus run?  When must we then change between the normal and average Tax?

Thank you

Good day Annalize

We normally only advise to change to normal pay if an employee will receive no pay or less pay than normal or variable income example commission, overtime on regular basis or if an employee is on maternity leave and no pay will be received during this period

The normal tax calculation is only intended for specific scenarios. Sage does not recommend this calculation if the remuneration of an employee fluctuates.

The preferred tax calculation should be on average tax.

What is the difference between normal and average tax:

Average tax:

The actual Year to date balance of remuneration( including the current period) is annualized using the average number f days that the employee has worked in the year.

Normal:

 The actual balance of remuneration (only for the current period) is annualized using a factor of 12.

I am not sure why the advise was giving to put on normal tax. It might have been to avoid the tax refund so that only the current period remuneration is used and not year to date.