How does the week 1 / month 1 basis work?

How does the week 1 / month 1 basis work?

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.

Note!
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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