2026 Guide: Updating GRA PAYE Thresholds and Processing Refunds in Phoenix

Updating GRA PAYE Thresholds (2026)

To update the system tax thresholds in Phoenix:

1. Navigate to Maintenance → Payroll Setup → GRA PAYE Table
2. Locate the Pay Frequencies used within your organization.
3. Select the Edit action for the relevant frequency.
4. Update the threshold values according to the new GRA guideline

Part 1: Updating PAYE Threshold Values

Monthly Pay Frequency

Fortnightly Pay Frequency

Bimonthly Pay Frequency

Weekly Pay Frequency

Important Notes

Tax rates have not changed.

• Deduction % 1: 25%
• Deduction % 2: 35%

Allowance values also remain unchanged.
These allowances should remain the same when updating your PAYE tables.

Part 2 (Optional): Processing PAYE Refunds

If payroll was processed before the thresholds were updated, employees may have had excess PAYE tax deducted.

With Phoenix’s PAYE Refund Module, users can:

• Recalculate PAYE using the updated thresholds
• Compare the recalculated amount with the original deductions for previous periods
• Generate refunds for affected employees

Before starting:

• Ensure the PAYE thresholds have been correctly updated

Step 1: Generate PAYE Refund

1. Navigate to Periodic → Generate PAYE Refund
2. Phoenix will automatically detect the periods requiring recalculation
3. Click Generate PAYE Refund
4. Select Update to process Refund

To review employee refund records:

Periodic →  PAYE Refund Records

Step 2: Activate the PAYE Refund

1. Go to Maintenance → Company Setup → Payroll Groups
2. Edit the applicable Payroll Group
3. Open the GRA Processing tab

Enable:

• PAYE Refund Enabled
• PAYE Refund Update: “Subtract from PAYE”

Note: Ensure this step is done for all active payroll groups

Step 3: Process the Current Payroll Period

Process payroll as usual.
The system will automatically apply the refund to eligible employees during payroll processing.

If the employee’s pay cannot cover the full refund amount, the balance will carry forward.

Step 4: Review PAYE Refund Reports

Phoenix provides several reports to track refund activity.

• PAYE Adjustment Refund: Shows PAYE before adjustment, after adjustment, and the refund applied. Navigate to: Payroll Reports → Payroll Periods → PAYE Adjustment Refund

• PAYE Refund Balances: Tracks remaining refund amounts when they cannot be fully applied in one period. Navigate to: Payroll Reports → Payroll Periods → PAYE Refund Balances

  

• PAYE Free Pay Refund Summary: Displays a full summary of refund values generated. Navigate to: Payroll Reports → External → PAYE Free Pay Refund