Help!!!
I have only just started doing PAYE for now for only one employee who is already earning with another job and has used all her allowances so she will be getting our wages deducted at tax rate of 22%.
I am paying her 2,000 gross for one month but it seems to show deductions over 700 and her net will be between 1200 and 1300.
Does this sound right or am I doing the calculations wrong as it is a lot in tax and NI??
Ken
Ken, I'm nothing of an expert in this field but I did see this website mentioned recently in a newsgroup posting which may help
Have you deducted the employer's NI from her gross?
Stephen
Yes very useful tool.
Ken
I have given in and a seeing my accountant on Monday morning for some lessons in PAYE!!!
Thanks for coming back to me
Ken
I would have expected just under 700 pound deductions.
what tax code are you using ? should be BR I think and deductions £419.80 tax and £176.62 NI according to
A clue might be in the fact that it's not eaxcatly 21% (20.99%).
Actually, I think they're doing 2,020pa @10% and the rest at 22% :- 168.33pm x 10% + 1831.67pm x 22% = 419.80pm.
Still probably wrong for this case!
Well spotted, and there's no "probably" about it. BR is supposed to mean all the income is taxed at basic rate, not some at the lower.
pass. I ran it through Quickbooks PAYE and for a BR payer it deducted £440 tax and £176.55 NI.
maybe
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