GB Payroll - Tax Wagtypes

[Former Member]

Hi,

Please can anybody help with the below:

1. I know wagetype /501 contains the amount of tax an employee has to pay in a pay period. Which wagetype is used to store the 'Total Tax' amount in a pay period?

2. Which wagetype is used for 'Tax calculated but not able to be taken due to insufficient funds'?

Thanks

Mike

[Former Member]

HI Mike,

on 1)

from the number of answers I conclude I'm not the only one, who isn't clear about what difference is meantbto be between the two. Can you elaborate?

on 2)

I'm not sure I explored this in a case in UK payroll, but I'm pretty sure for all paurolls I did check it, there was no such concept as "tax not taken". I think the reason for this is: whenever someone hasn't got enough money at some point, there's always one guy certain not to lose out: the taxman 😉

So, if you get to this situation, the tax is still calculated and paid by the employer, but then the employee owes it to the employer to be deducted next month.

Apart from my "philosophical" explanation above, there's alo a practical reason: if the totalgross of a month is not paying for all the deductions, you can't really decide which deduction is the last. Could be tax, NI, student loan, pension contribution, corporate cricket club, giftaid donation,...

So, as far as I'm aware you just have the amount in the unspecified wagetyoe /561 to re-surface as /563 innthe next month (fingers crossed it's the same WT in GB - just looking at a Luxembourg wagetype list).

If I'm missing a point here: other members go ahead: interesting issue to learn from.

kind regards

Sven

[Former Member]

Hi Sven,

Thank you for your detailed reply on point 2.

As you may well know the Government has announced that there will be a 50% tax overriding limit on all tax codes including the two new codes M & N coming in to affect on the 6th April 2015. If somebody does go over this limit then /501 (Tax Paid) can only be a maximum amount of 50% of /121 (Taxable Pay). The remaining tax will get stored in /561 to be carried forward to the next pay period. My question is that where is the Total Tax amount for a pay period stored (/501 + /561)?

Thank you

Mike

[Former Member]

Hi Mike,

Ah - ok. I completely misunderstood your question then. Sorry.

Haven't seen this in action yet (other than in error as it springs into action shooting down payroll in Jan for customers using the higher version of payroll period numbering - where Jan 2015 is 10/2015 rather than 10/2014 as the programmer assumed). Will come back, when I know sth. new.

Best wishes

Sven

[Former Member]

Hi,

Can anybody help with this?

Thanks

Mike