Section Sch2-2 — Income Tax Act 2007: “ M ” , “ ME ” , and “ ML ” tax codes: payments for pay periods longer than a week

2 “ M ” , “ ME ” , and “ ML ” tax codes: payments for pay periods longer than a week If an employee has notified their employer that the employee’s tax code is “ M ” , “ ME ” , or “ ML ” under section 24B(3) of the Tax Administration Act 1994, and the payment of salary or wages is for a pay period longer than a week, then the basic tax rate amount for the payment is calculated using the formula— ( total payment ) × weekly PAYE table amount. weekly portion of payment (a) total payment means the payment of salary or wages to which this clause applies: (b) weekly portion of the payment means the portion of the payment that is attributable to the part of the pay period that is for a week if it is assumed that the payment accrued at a uniform daily rate throughout the pay period: (c) weekly PAYE table amount means the amount that results from applying the Commissioner’s weekly PAYE table to the weekly portion of the payment (described in paragraph (b)) using the employee’s tax code, as if the weekly portion is a payment for a weekly pay period. Schedule 2 part A clause 2 heading: amended, on 1 April 2009, by section 37(3) of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105). Schedule 2 part A clause 2: amended, on 1 April 2009, by section 37(4) of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105). Schedule 2 part A clause 2 formula: substituted (with effect on 1 April 2008), on 7 December 2009, by section 123(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).