Recording the Payee's PAYE Tax Details

PAYE tax details apply to payees who have tax withheld from their earnings by their employer under the Pay-As-You-Earn tax scheme.

Once defined, a payee's PAYE tax details can be modified if necessary so long as the payee is not currently included in an open pay batch.
However, once the payee has been paid (included in a closed pay batch) their PAYE tax details are locked down for the corresponding payee details validity period and cannot be modified for that period. If you need to modify a payee's PAYE tax details after the payee has been paid in one or more pay batches, you must create a new payee details validity period.

How to Record the PAYE Tax Details

To record the payee's PAYE tax details, follow the procedure below.

How to Record the Payee's PAYE Tax Details
	On the Payee Entry screen, navigate to the Payee Details > PAYE Tax Details section.
2.	In the IRD Number field, key in the number that uniquely identifies the payee to the Inland Revenue Department. If the payee’s IRD number is 8 digits long, key a leading 0 at the start of the IRD number to pad the number out to 9 digits.
3.	In the Tax Code field, select the tax code under which the payee is to have tax withheld. If you selected a tax code that includes a student loan component (M SL, ME SL, S SL, SB SL, SH SL , ST SL, SA SL), an SDR field appears next to the tax code field. Where this is the case, continue on to step 4. If you selected the STC* tax code, an SL Rate and Tax Rate field appear beneath the Tax Code field. Where this is the case, continue directly to step 6.* If you selected any other tax code, no further action is required.
4.	If the payee has provided a student loan special deduction rate certificate, tick the SDR field. Otherwise, do not tick the SDR field. If you ticked the SDR* field, an SL Rate field appears below the Tax Code field. Where this is the case, continue on to the next step.* If the payee did not provide a student loan special deduction rate certificate, no further action is required.
5.	In the SL Rate field, key in the student loan deduction rate as specified on the payee's student loan special deduction rate certificate. For example, if the rate specified on the certificate is 2%, key in 2. Once you have keyed in the rate, no further action is required.
6.	If the payee's special deduction rate certificate specifies a student loan deduction rate, key in the specified rate in the SL Rate field. For example, if the rate specified on the certificate is 2%, key in 2. Otherwise, skip this step and proceed to the next step.
7.	In the Tax Rate field, key in the tax rate specified on the payee's special deduction rate certificate. For example, if the tax rate specified on the certificate is 15%, key in 15.