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Tax code help needed!

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Comments

  • Free pay is divided into equal portions for each pay period, so his code of1006L will be split into 12 portions if monthly paid or 52 if weekly paid & that portion is deducted from the gross for that wage. Balance is taxed at 20%. If month 1 used you get taxed as if you are still in month one (expressed as L XM1 or W1). A small adjustment happens once the new coding notice gets to the pay dept.
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