Why is the wage tax different?
The wage tax on a pay slip can be different from what you expect. This usually happens because of the employee’s tax settings.
The most common reasons are:
- Tax allowances. These lower the amount of tax an employee pays. Examples are the Child allowance, the Single Earner allowance and the Elderly allowance. If one of these is switched on or off, the wage tax changes.
- The Basis Discount. This is a fixed discount on wage tax. It changes the result depending on whether it is used or not.
How to check the settings
You can see which settings were used in earlier pay runs in two places:
- The pay slip PDFs in Documents.
- The Checklist for that pay run.
Compare these with the current settings to find what changed.