When processing the payroll validation job (PAY 140), the above error message appears because of missing PAYE rates for the current tax year. Without these rates, the system cannot calculate the correct payments for employees.
To resolve this issue, you need to update the PAYE rates for the PAYE Letter in the system.
We have compiled a step-by-step guide to assist you in completing this process. To do this, follow the steps below.
Check the employee tax code
To check the employee tax code, follow the steps below.
Click Employee then in the Search field, search for the relevant employee.
Click View then click the Tax Details tab.
Review the tax code and note the Prefix/Suffix.
Check the PAYE letter
After checking the employee tax code, check the PAYE letter. To do this, follow these steps.
Click Settings then under UK Tax Rates, click the PAYE Codes.
In the Year Number field, enter the current tax year.
Search for the Suffix/Prefix noted above in step 1 then check the PAYE Code Letter assigned.
Add the PAYE rate
After checking the PAYE letter, check the PAYE rate. To do this, follow the steps below.
Click Settings then under UK Tax Rates, click the PAYE Rates.
In the Year Number field, enter the current tax year.
Click Add then fill in the following fields:
PAYE Code: This is the PAYE Code letter noted in step 2.
PAYE Rate
Upper Limit
📌Note: Repeat for each PAYE Rate/Upper Limit assigned to the PAYE letter.
Click Save.