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WatsonsCPS
October 24, 2022
Question

PAYE being deducted even though employee below threshold

  • October 24, 2022
  • 1 reply
  • 0 views

I am struggling to run my first payroll. I have a director only limited company and have set my earnings to be below the income tax threshold. However, when I go to run payroll the payslip is showing a PAYE tax deduction. How do I rectify this? All the settings seem to be correct according to other threads and help documents. Any help would be appreciated. 

1 reply

A
AileneA
October 24, 2022

Hello, WatsonsCPS. 

 

The system calculates contributions and deductions depending on how you set them up. It means the taxes are deducted accurately based on the employee's setup. For your guide, you can check out these articles:

 

 

However, If the setup is correct while the calculation is incorrect, you can use the HMRC calculator. I'd also suggest reaching out to an accountant so they can help you verify your setup according to your payroll preferences.  

 

You can also reach out to our Support Team so a live representative can check and review the root cause of this behavior securely. For the support's contact details, you can follow the instructions laid out under the QuickBooks Online Support link. 

 

  1. Go to the Help menu. 
  2. Select Contact us.
  3. From the What can we help you with? box, enter a brief description of your concern.
  4. Click Continue.
  5. You'll be routed into the Choose a way to connect with us page.
  6. Choose Get a callback or Start a chat.

 

You might also want to visit our help page to browse articles that can guide you with your QuickBooks tasks. To get started head to our QBO help articles at this link.

 

Feel free to post here again if you have other QuickBooks related concerns. I'll be around to help you in any way I can. Have a good one. 

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