Q: When an employee first commences employment and may have started part way through a pay period but wasn’t included in that pay period but was instead paid those hours in the following pay period, how should that be taxed? i.e. Employee commenced during October, is on a monthly pay schedule but the payment owed for October was added to the November pay run, should we just let the system deduct paye for the whole payment or should we calculate the paye for the October and November gross amounts separately as if they weren’t lumped together?

A: It is still a salary or wage payment and should be taxed as such under RD5 of the (Income Tax Act 2007).

It does not fit the criteria set under RD7.