Summary
How to add an IT3a Reason Code to an employee in Sage Pastel Payroll.
Description
Two ways to clear the IT3a Reason code exception:
- Directly on the employee masterfile screen.
- When closing the Exception report.
Resolution
Adding the reason code the masterfile.
- Go to Edit and click Employee Masterfile.
- Click the magnifying glass and select the employee you want to enter the reason code for.
- Click the Tax Tab.
- Click the IT3(a) Reason Code drop-down and select the reason why this employee doesn’t pay PAYE:
Adding the reason code after closing the exception report
- Click View then Statutory Reports.
- Select IRP5/IT3a Exception Report.
- On the filter screen, filter for all of your employees (everyone to appear the Right-hand side).
- Click the Print To drop-down and select Screen.
- Click the Print Status drop-down and select Both.
- Click Yes, choose the reason the employees aren’t paying PAYE (for example, income below threshold), and save.
NOTE: We can’t advise you on which reason to select. It’s usually because the employee earns below the tax threshold. If unsure, check with your Tax Practitioner.