Section RD 15 — Income Tax Act 2007: Payments of salary or wages in pay periods

RD 15 Payments of salary or wages in pay periods Payment for part of period (1) If an employee who is in regular full-time employment is paid salary or wages for part of a pay period, the payment is treated as a payment for a full pay period. Payment on production basis (2) If an employee who is paid on a production basis for work performed as a piece worker or out-worker is paid salary or wages, the payment is treated as payment for the period that runs from the date the work starts to the date of its completion. Payments in several sums (3) If a PAYE income payment for a pay period is paid in 2 or more separate sums, those sums must be added together to determine the amount of tax for the payment. When impractical to make payments at same time (4) Despite subsection (3), if it is impractical for an employer to pay an employee overtime pay and other salary or wages for a pay period at the same time, the employer may add the amount of the overtime pay of the employee to their salary or wages for a later pay period, but not their overtime pay if, for both pay periods,— (a) the amounts of the employee’s salary or wages are more or less the same; and (b) the amounts of tax withheld from the employee’s salary or wages are the same; and (c) the employee has the same tax code. Periods not coinciding (5) For the purposes of subsection (4), if overtime pay is paid for a particular period that is the same length as a pay period but does not coincide with a pay period, it may be treated as overtime pay for the pay period in which the particular period ends. Defined in this Act: amount of tax , employee , employer , employment , pay , pay period , PAYE income payment , salary or wages , tax code , tax withheld , Compare: 2004 No 35 s NC 2(2)–(4)