Summary
Tax is calculated on an annual average on Sage Business Cloud Payroll. This means that the year to date taxable remuneration is used to calculate the tax and not the current monthly figures.
Resolution
From the Sage Business Cloud Payroll (SBCP) homescreen:
- Click on Employee
- Click on Employee details
- Select the employee from the left-hand side of the screen
- Click on Payslip
- Click on view tax calculation:

A step by step tax calculation will now appear, you can go through the calculation and see exactly how your PAYE amount was calculated.
TIP: If you are unsure if your calculation is still incorrect, please view our guide that will advise you what is the most common causes for PAYE to not calculate as expected