How does the week 1 / month 1 basis work?

How does the week 1 / month 1 basis work?

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This feature is available on all Deel Local Payroll powered by payspace payroll editions
The week 1 / month 1 basis provides a proportion of any allowances and tax rates for each pay period. Unlike the cumulative method, it disregards previous pay and tax. Consequently, all payments are taxed as if it were the first week or month of the tax year, meaning the employee is taxed on a non-cumulative basis.
Navigate > Employees > Tax Profile > Tax Details tab


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Important
When applying the Week 1 / Month 1 method, employees typically pay slightly more tax. This is generally used as a temporary measure when hiring a new employee, especially when their previous earnings and taxes paid in the current tax year cannot be determined from their former employer.

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