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Question

Good Day 
 
 Please assist in clarifying. Last time I phoned the call Centre I was advised that if you use separate Payslips you Must change the average tax to normal tax otherwise it give a lot of tax back. 
 
 I have done the bonus run on a separate Payslips must I put the average tax back on before I run the final pay run? 
 
 Thank you

AngeliqueD · Accepted Answer

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

AngeliqueD · Answer

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.

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