Update Phoenix with the new 2026 GRA tax thresholds to ensure accurate PAYE calculations for your organization. This guide covers adjusting the personal allowance settings and processing refunds for any previously processed payroll periods.
Updating GRA PAYE Thresholds (2026)
To update the system tax thresholds in Phoenix:
- Navigate to Maintenance → Payroll Setup → GRA PAYE Table
- Locate the Pay Frequencies used within your organization.
- Select the Edit action for the relevant frequency.
- Update the threshold values according to the new GRA guideline
Part 1: Updating PAYE Threshold Values
Monthly Pay Frequency
Threshold | Amount |
|---|---|
| Free Pay (Personal Allowance) | $140,000 |
| Max Deduct 1 | $280,000 |
| Max Deduct 2 | $420,000 |
Fortnightly Pay Frequency
Threshold | Amount |
|---|---|
| Free Pay (Personal Allowance) | $64,615 |
| Max Deduct 1 | $129,231 |
| Max Deduct 2 | $193,845 |
Bimonthly Pay Frequency
Threshold | Amount |
|---|---|
| Free Pay (Personal Allowance) | $70,000 |
| Max Deduct 1 | $140,000 |
| Max Deduct 2 | $210,000 |
Weekly Pay Frequency
Threshold | Amount |
|---|---|
| Free Pay (Personal Allowance) | $32,308 |
| Max Deduct 1 | $64,615 |
| Max Deduct 2 | $96,924 |
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.
Pay Frequency | Overtime Allowance | Child Allowance | Second Job Allowance |
|---|---|---|---|
| Monthly | $50,000 | $10,000 | $50,000 |
| Bimonthly | $25,000 | $5,000 | $25,000 |
| Fortnightly | $23,077 | $4,615 | $23,077 |
| Weekly | $11,538 | $2,308 | $11,538 |
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
- Navigate to Periodic → Generate PAYE Refund
- Phoenix will automatically detect the periods requiring recalculation
- Click Generate PAYE Refund
- Select Update to process Refund
To review employee refund records:
Periodic → PAYE Refund Records
Step 2: Activate the PAYE Refund
- Go to Maintenance → Company Setup → Payroll Groups
- Edit the applicable Payroll Group
- 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
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