Why would tax calculate on an employee whose salary is below the tax bracket?

The tax (PAYE) would calculate on an employee's payslip whose earnings are below the tax bracket if their Periods Worked is incorrect.

      Navigate > Employee > Payroll Processing > Edit Payslip 

      

Check the value next to "Divide by Periods Worked" -  if this value is less than 1 and verify that the employee's Employment Date on the Tax Profile screen is correct.

      Navigate > Employee > Payroll Processing > Edit Payslip > Other Actions > Tax Breakdown

      

      Navigate > Employee > Basic Information > Tax Profile 

      

Note! If the employee's employment date falls in the middle of the month, the Periods Worked will be adjusted to account for tax for the period of the month that the employee worked. This is because PaySpace calculates tax using the Averaging Tax method for South Africa.

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