What happens if the end of the financial year falls in the middle
of the Pay Period?
We are often asked this question when tax rates are changing, and the pay period starts in March but ends in April. For example the weekly pay period starting Tues 29 March, and ending Mon 4 April.
There is nothing special you need to do here - you do NOT need to split the week up to account for the different tax rates. Just process your pay as normal, using your normal pay period length (weekly, fortnightly etc), and Payroll Pro will use the tax rates for the whole pay period based on the rates as at the Pay Period End Date. This is correct as per IRD rules, and so the date at the end of the pay period is the important one for determining which tax rates to use for the whole pay period.
In the above example any new tax rates applying from 1 April would apply to the whole pay from 29 March to 4 April, even though the pay period started in March.