Why is the PAYE negative on the employee's payslip?
This happens when earlier payslips deducted more tax than is now due after a salary drop. PAYE is calculated on a year‑to‑date basis, so the system adjusts to balance the over‑deduction. Example: Total annual tax originally expected: R20,000 Tax already deducted before salary drop: R15,000 New total annual tax after salary drop: R10,000 Over‑deduction: R5,000 → system shows negative PAYE What to check: Ensure the PAYE total on the EMP201 report is not negative. If it is, manually override the payslip(s) so the EMP201 PAYE total is R0 or positive. Keep mid‑year and year‑end IRP5 reconciliations in mind for these rare cases.
Updated at 2026-09-01 22:35:31
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