Hi Everyone
I want to ask about the withholding deduction from payroll perspective using Method A and Method B(ii).
From what i see, the only practical difference between those two methods is as per highlighted below.
Method A
This method calculates withholding by averaging all additional payments made in the current pay period over the number of pay periods in a financial year, and applying that average amount to the gross earnings in the current pay period.
Method B (ii)
This method calculates withholding by averaging all additional payments made in the current financial year over the number of pay periods in a financial year, and applying that to the average total earnings to date.
In this case, I can just use method B (ii) for all lump sum payment scenarios which don't relate to particular pay period within the year (else I need to use Method B (i)).
Even if I use method B (ii) for an employee with the same ordinary earning every period, the earning per period will returns the same result anyway if I average it over total earning to day. So my hypothesis is method A is kind of redundant?
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