Section RD 14 — Income Tax Act 2007: Changes to tax rates for salary or wages

RD 14 Changes to tax rates for salary or wages When subsection (2) applies (1) Subsection (2) applies when a change occurs to the amounts of tax for PAYE income payments set out in schedule 2 (Basic tax rates for PAYE income payments). Determining amount of tax (2) The amount of tax for a payment of salary or wages for the pay period in which the change occurs is determined as follows: (a) for a pay period of 1 month or less, the amount of tax for the full payment for the pay period is the altered amount: (b) for a pay period of more than 1 month, the amount of tax is determined on the basis set out in schedule 2, clause 2 , by— (i) determining the proportionate parts of the payment before and after the change; and (ii) calculating each part of the relevant amount of tax; and (iii) adding together the relevant amounts of tax. When subsection (4) applies (3) Subsection (4) applies for a week when— (a) a change occurs to the amounts of tax for PAYE income payments set out in schedule 2 ; and (b) an employee receives more than 1 payment of salary or wages for the week as described in section RD 12 . Determining amount of tax (4) The total amount of tax for all payments of salary or wages for the week in which the change occurs is the amount determined under section RD 12 . Later payment for earlier services (5) The amount of tax for a payment of salary or wages made after the date of the change for a pay period ending before the date in relation to services provided before the date must be calculated using the basic amounts of tax for PAYE income payments applicable in the pay period or week. Defined in this Act: amount of tax , employee , pay , pay period , PAYE income payment , salary or wages , Compare: 2004 No 35 s NC 12