Earnings Periods: Notifications issued in accordance with regulation 3(2B), SS(C)R 2001: Future calculation of contributions
If neither the employer nor the employee disputes the facts of the case, but theenquiry is about calculating contributions in future, tell the employer that the thresholdand limits for the longer earnings period apply to the first payment made after issue ofthe notification and that they can deduct contributions on account frompayments made at the shorter interval before the higher threshold is reached, if theemployee agrees. If this is done, the employer must:
- use the limits and threshold appropriate to the longer earnings period for the total earnings;
- enter the contributions on the Deductions Working Sheets as they are deducted;
- take them into account when the higher threshold is eventually reached; and
- pay the contributions to the Department with PAYE as normal.