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Legislation about pay period dates

Income Tax Act 1994

Section NC12 Amount of tax deductions for pay period current when tax deductions

(1) Notwithstanding anything in the PAYE rules, this section shall apply where the amount of the tax deduction for the time being in force in relation to any payment of salary or wages is reduced or increased by an annual taxing Act or by an amendment made to the basic tax deductions.

(2) Where this section applies, the amount of the tax deduction to be made from a payment of salary or wages to an employee for a pay period current on the date on which an altered tax deduction commences to apply shall be as follows:

(a) Where the pay period does not exceed a month, the tax deduction in respect of the whole of the payment for the pay period shall be the amount of the altered tax deduction:

(b) Where the pay period exceeds a month, the tax deduction shall be ascertained

(i) By calculating, on the basis specified in clause 3 (a) of Schedule 19, the parts of the payment for the pay period that are for the respective portions of the pay period before and after the altered tax deduction commences to apply: and

(ii) By calculating, in respect of each such part of the payment, the amount of the tax deduction that would be required to be made from a payment of salary or wages equal to that part for a pay period equal to the portion of the pay period to which that part relates; such calculation to be made according to the tax deduction in force in that portion of the pay period and in the manner provided in paragraphs (b) and (c) of clause 3 of Schedule 19;---

and the total of the amounts of the tax deductions calculated under subparagraph (ii) shall be the amount of the tax deduction to be made from the payment of salary or wages for the pay period.

(3) Where this section applies and section NC 10 also applies, the amount of the total tax deduction required to be made in accordance with section NC 10 in respect of all payments of salary or wages made to an employee for a week current on the date on which an altered tax deduction commences to apply shall be calculated in accordance with the altered tax deduction:

Provided that where all the payments made to an employee for that week are for services rendered before that date, the amount of that total tax deduction shall be calculated in accordance with the tax deduction in force in the portion of the week in which the services were rendered.

(4) Where this section applies, and on or after the date on which an altered tax deduction commences to apply a payment of salary or wages is made to an employee

(a) For a pay period that ended before that date; or (b) Where section NC 10 applies, for services rendered in a week that ended before that date,

the amount of the tax deduction to be made, or the amount of the total tax deduction required to be made, shall be calculated in accordance with the tax deduction in force in that pay period or week.

Cf. 1976, No. 65, s. 349

Taxation - Tax Rate Increase - Act 1999

Section 13 Schedule 19 Basic tax deductions

(1) In Schedule 19, clause 5,

`` `Sec' '' is replaced by `` `S' ''.

(2) In Schedule 19, after clause 5A, the following is inserted:

``5B. From every payment of secondary employment earnings for which the employee has delivered to the employer a tax code declaration under section NC 8 specifying the tax code `ST', tax is deductible at the rate of 39 cents per $1 of secondary employment earnings.''

(3) In Schedule 19, clause 8 (b) is replaced by:

``(b) 33 cents per $1 of extra emolument if either section NC 2 (5)(a) or NC 8 (1A) applies; or

``(c) 39 cents per $1 of extra emolument if either section NC 2 (5)(b) or NC 8 (1A) applies.''

(4) Schedule 19, Appendix A is replaced by the new Schedule 19, Appendix A set out in Schedule 2 of this Act.

(5) Subsection (1) applies to tax deductions from payments of secondary employment earnings for a pay period ending on or after 1 April 1999.

(6) Subsection (2) applies to tax deductions from payments of secondary employment earnings for a pay period ending on or after 1 April 2000.

(7) Subsection (3) applies to tax deductions from extra emoluments paid on or after 1 April 2000.

(8) Subsection (4) applies to pay periods ending on and after 1 April 2000.

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