Override tax in a payslip

Overriding tax in a payslip

If an employee was not taxed correctly, you can use tax override 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 override tax in a payslip

  Looking for information on how to update payslips? Check out our Making changes to processed pays help guide here

Override 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:

  • 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 override tax in a payslip:

  1. 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.

    Edit payslip.png
  2. Scroll down to the bottom of the payslip and enable the 'Override Tax' toggle on the right of the totals section.
  3. Enter the correct tax amount in the Tax field.

      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. 
  4. Then select Update Payslip and add a comment to capture why you edited the payslip.

    Override tax in payslip.png
  5. 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.