The calculation commands now limit the amount of tax that can be deducted to 50% of each employee’s gross pay or pension. This applies to both the main calculation (Payroll – Calculation) and the individual calculation (Payroll – Processing – Calculate) commands.
The 50 % limit is set on the Options Page 3 tab of the Set Options form (on the Payroll – Utilities menu). As the limit previously applied only to those codes with ‘K’ at the beginning, the limit was called Max. K Code %. This has now been renamed to Tax Regulatory Limit %.
This limit is automatically set for the 2015-16 tax year along with the other rates and thresholds using these commands:
• Update Data Structures command (on the System – Utilities menu)
• Copy Statutory Rates command (on the Payroll – Utilities menu).
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