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Level 3

PAYE and NI do not calculate properly, or at all for some employees

I'm using QB Online Advanced Payroll and have hit a snag on my pay run. For some employees, PAYE does not calculate despite their earnings being well over the threshold and their tax code set correctly. For other employees it does calculate PAYE, however the amount calculated is not correct. The NI amounts also vary between correct and wrong, with no clear pattern to this.

 

If this was the same issue happening on all employees I'd say there's a problem with my company settings, but it is random employees. I have checked their tax codes and they are correct; I have no YTD information for any of them as it's a test setup. 

 

Can anyone help shed some light on why PAYE is not calculating properly, and not at all for some employees? I need to know that this will work for all employees before we go live.

 

I've attached a screenshot of some of the employees showing their Gross / Taxable earnings, PAYE, and NI columns to help clarify.

Solved
Best answer May 14, 2020

Accepted Solutions
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Level 3

PAYE and NI do not calculate properly, or at all for some employees

Ah - I have found the problem. I had put the wrong date in as the pay date for the pay run - it was crossing from Month 1 to Month 2 and miscalculating the tax as a result.  I have corrected the date and the tax and NI are now calculating properly.

 

View solution in original post

5 REPLIES 5
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QuickBooks Team

PAYE and NI do not calculate properly, or at all for some employees

Hi Susan, 

 

Thanks for your detailed post. You mentioned that you haven't set any YTD information as you're trialing the payroll, however this could be the cause of the inaccurate calculations if the employees do have YTD's to be entered. 

 

Which period of the tax year are you starting the Advanced payroll from? - Georgia 

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Level 3

PAYE and NI do not calculate properly, or at all for some employees

Hi Georgia, thanks for your reply. 

 

I'm starting the payroll information from April - which is the start of the tax year so there shouldn't be any YTD information I assume?

 

I'm happy to put in YTD information (in Opening Balances?) and see if that makes a difference.

 

Susan

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QuickBooks Team

PAYE and NI do not calculate properly, or at all for some employees

Great, if its the first of the year then there would be no PAYE or NI opening balances to enter. 

'

Have you created a new pay category for the salary, or are you using one of the default pay categories such as 'Hourly Pay' or 'Salary'? 

 

If you have made any amendments to employee's settings we'd advise deleting any draft pay runs you have created and re-running this so that the changes can be taken into account. 

 

I'd also recommend using the HMRC calculators which can be accessed here to confirm the calculations which you should be expecting to see in QuickBooks. 

 

Thanks!

Highlighted
Level 3

PAYE and NI do not calculate properly, or at all for some employees

Ah - I have found the problem. I had put the wrong date in as the pay date for the pay run - it was crossing from Month 1 to Month 2 and miscalculating the tax as a result.  I have corrected the date and the tax and NI are now calculating properly.

 

View solution in original post

Highlighted
QuickBooks Team

PAYE and NI do not calculate properly, or at all for some employees

Thanks for getting back to let me know Susan, I'm pleased that's calculating correctly for you now 🤗