NEGATIVE PAYE JAMAICA (Tax Refund)

This example is from a Fortnightly paygroup in Jamaica.

It was observed in the Cycle Pay Register Detail report, that some employees had a negative figure for PAYE for the current cycle (-1,620.00). These employees had received an additional taxable earning in the previous cycle, and had paid PAYE on that amount. However, receiving their normal wages in this cycle, taking into consideration the additional tax allowance threshold amount, the employees had now paid more than required in tax for the year to date. 

This negative PAYE amount therefore represents a tax refund. See worked example below.

Cycle Pay Register Detail Report

Employee Pay Profile Prior Periods Data

  Gross Emoluments (Taxable Earnings YTD)        =     612,726.44

Minus (NIS paid YTD + Pension paid YTD)        -  14,905.59

Therefore Statutory Income        =    597,820.85

Minus (Tax Allowance threshold YTD)         - 576,960.00

Therefore Chargeable Income         =   20,860.85

PAYE YTD due calculated at 25%      * 0.25       =    5,215.21

However, PAYE YTD as at the previous cycle          =     6,835.21

Thus employee has paid more PAYE YTD (6,835.21) than rightfully due (5,215.21)

(PAYE assessed YTD) – (PAYE paid YTD)                     =      5,215.21

                     -     6,835.21 

= PAYE refund           =    - 1,620.00

    

Calculation Breakdown

1	Get Gross Emoluments YTD		612,726.44
2	Get NIS YTD		14,905.59
3	Get Pension YTD		0.00
4	Calculate Statutory Income YTD	(1) -  [ (2) + (3) ]	597,820.85
5	Get Tax Allowance YTD		576,960.00
6	Calculate Chargeable Income YTD	(4) - (5)	20,860.85
7	Calculate PAYE YTD due (25%)	(6) x 0.25	5,215.21
8	Get PAYE YTD paid (previous cycle)		6,835.21
9	Therefore PAYE Refund	(7) - (8)	- 1,620.00

Prepared  by: Francies Bruce