How should tax credits be recorded on payslips – as net pay + tax credit = total pay – or can it be shown as an addition?
A. Employers are free to show the tax credit on the employee’s payslip in the way that best fits in with their existing payslip design. The main point is that the tax credit amount must be shown as a clearly identifiable separate amount on the payslip. Court Orders, Attachment of Earnings Orders etc. Q. If various deductions from net pay such as Court Orders, Child Support Orders, Attachment of Earnings orders etc. reduce the net pay to less than nil, can tax credits be used to cover any shortfall? In other words, can employers recover net pay deductions from the tax credit if all their net pay has been used up? A. No. The tax credit must be paid in full. It cannot be “attached”, used by way of set-off or otherwise reduced.
Related Questions
- Did the Fund pay a year-end dividend? If so, what was the record and pay dates, the amount, and was the dividend from capital gains or from net investment income?
- How should tax credits be recorded on payslips - as net pay + tax credit = total pay - or can it be shown as an addition?
- Does the total employer contribution (listed under net amount) on the pay stub include all employer contributions?
