PAYE on employees' pay slips are calculated in accordance with the statutory annual tax tables.

 

It may happen that two employees are earning the exact monthly wage, but the one is paying more PAYE than the other one, due to differences in previous months.

 

The most obvious reason for the difference, is that tax is calculated pro rata over a twelve month period, where all income in that specific period is taken into account.  The calculation of PAYE in a specific month is based on the current month's as well as previous months' income.  All income will be taken into account; that is: overtime, commission, bonuses, etc. Based on the employee's income a prediction of his annual income in that specific financial year, will be done. 

 

Rebates for which the employee may qualify, will also be taken into account.

 

The above will explain the difference in tax payable by the employees. You can print the tax calculation by following the steps: Pay / Tax (in the yellow block) / Tax Calculation Printout.

This printout will give you a detailed summary of the tax calculated.

 

Please also make sure that the period of the pay slip is correct.