How do I change an employee's tax status during the tax year?

Changing a tax status during the tax year, will result in the employee being taxed on year to date earnings based on the new tax status. Therefore, should an employee’s tax status change, you should terminate and reinstate the employee starting a new tax record.

Step 1: Terminate the employee's record on the old tax status.

      Navigate > Employee > Basic Information > Tax Profile

      

      

Step 2: Reinstate the employee Starting A New Record on the new tax status.

      Navigate > Employee > Basic Information > Tax Profile
      

      
Note! You can only change an employee's tax status without having to terminate and reinstate their profile, at the beginning of the tax year (i.e. on the March run).

Important! This also applies if an employee's tax status is set to Directive and receives a new directive number during the tax year.

Related FAQs

1. How do I terminate an employee?
   
2. How do I reinstate a terminated employee?

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