Hi all, I am using the wages app and I’m paying an employee. The date of payment is from the 31st of December 2015 to 7th January 2016. I enter the gross pay for employee and the system is calculating the net pay less than last years weekly net pay. Could you assist me further with this, thanks. Niall

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Hi all, I am using the wages app and I’m paying an employee. The date of payment is from the 31st of December 2015 to 7th January 2016. I enter the gross pay for employee and the system is calculating the net pay less than last years weekly net pay. Could you assist me further with this, thanks. Niall

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Peter Connor ⋅ Staff February 4, 2016
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Hi Niall,
Tax credits reset at the beginning of each calendar year (and also tax details may change).  The last payment for 2015 may have been using some leftover tax credits for that employee for 2015, but the first wage in 2016 doesn’t use any tax credits from 2015.  Has the employee’s tax details changed?  Perhaps they’re tax credits have been reduced.

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  1. niao February 4, 2016
    Hi John,
    Ok, employee tax details haven't changed. I downloaded the ROS P2C file and uploaded it into the system. The difference seems to be that it is adding paye tax and higher USC than 2015.
    Kind regards,
    Niall
  2. Peter Connor February 4, 2016
    Hi Niall,
    Both USC and PAYE are taxed on a cumulative basis, so unused tax credits at the end of 2015 could definitely have reduced those taxes, whereas there are no unused tax credits to get the same benefit for in 2016, since the year has only started. If you let me know the name of the employee you are enquiring about, I can have a look at your account and get the specific details.
  3. niao February 4, 2016
    Hi John,
    That's perfect, the employee is John McManus.
    Thanks,
    Niall

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