Editing tax on a payslip
If an employee was not taxed correctly, you can use tax edit in a payslip to adjust the amount they should have been taxed.
This is normally done on a case-by-case basis and is actioned via a payslip edit.
In this article, we will cover:
- How to edit tax on a payslip
Looking for information on how to update payslips? Check out our Making changes to processed pays help guide here.
Edit tax in a payslip
When editing a payslip, you can modify the tax amount for that specific employee. A few reasons why tax in an employee's payslip may need to be overridden:
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- A different tax method may need to be followed for that specific pay period
- Additional tax may need to be applied for a pay period
- An employee was taxed too much and needs their tax amount reduced
To edit tax in a payslip:
- Find the relevant payslip via Payroll > Pay > Generated payslips and select down arrow > Edit to edit the payslip. This can also be actioned to a draft payslip.
- Scroll down to the bottom of the payslip and select 'Edit Tax'.
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In the Edit tax modal update from the following:
- PAYG field - Specify the total amount of tax to be applied to this payslip.
- Reset - If edited before, select Reset to revert the tax changes and restore the original tax amount.
Hot tip: If the tax amount has been edited, a red dot will appear next to Edit Tax.
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Select Save.
Please note: Do not select Calculate Totals as this will revert your entered tax amount. Instead, select Preview Payslip to make sure the amounts are correct.
- Then select Update Payslip and add a comment to capture why you edited the payslip.
- Once the payslip is updated, an STP event will be generated for you to submit and an ABA for the difference will be created for you to upload and pay the employee.