14. Calculation and making of deduction or repayment

(1) On any payment of relevant emoluments to or on behalf of an employee in respect of whom a revenue payroll notification has been sent to or made available to the employer, that employer, except where these Regulations otherwise provide, shall ascertain—

(a) the cumulative relevant emoluments of that employee at the date of payment, and

(b) the cumulative USC.

(2) (a) The cumulative USC for the pay period shall be the amount represented by A in the formula—

A = (B x F) + (C x G) + (D x H) + (E x I)

where—

B is the amount (that may be nil) of the cumulative relevant emoluments up to and including the cumulative rate cut-off point for the pay period which is chargeable to USC at the rate specified in F,

C is the amount (that may be nil) of the cumulative relevant emoluments up to and including the cumulative rate cut-off point for the pay period which is chargeable to USC at the rate specified in G,

D is the amount (that may be nil) of the cumulative relevant emoluments up to and including the cumulative rate cut-off point for the pay period which is chargeable to USC at the rate specified in H,

E is the amount (that may be nil) of the cumulative relevant emoluments that exceeds the rate cut-off point referred to in the meaning of D,

F is the first rate specified in column (2) of Part 1 of the Table to section 531AN of the Act,

G is the second rate specified in column (2) of Part 1 of the Table to section 531AN of the Act,

H is the third rate specified in column (2) of Part 1 of the Table to section 531AN of the Act, and

I is the fourth rate specified in column (2) of Part 1 of the Table to section 531AN of the Act.

(b) The cumulative rate cut-off point for the pay period in respect of a rate notified in a revenue payroll notification is;

the rate cut-off point notified in respect of that rate x J

K

where—

J represents the number of pay periods, including the current pay period, since the start of the USC year, and

K represents the total number of pay periods for the USC year.

(c) In this Regulation, a pay period is the normal payment period in respect of which relevant emoluments are paid to an employee and the total number of pay periods for the year is—

(i) 52 where the employee is paid weekly,

(ii) 26 where the employee is paid fortnightly, and

(iii) 12 where the employee is paid monthly.

(3) If the cumulative USC determined in accordance with paragraph (2) exceeds the cumulative USC corresponding to the employee's cumulative relevant emoluments at the date of the last preceding payment of relevant emoluments (in this Regulation referred to as the "previous cumulative USC"), the employer shall deduct the excess from the relevant emoluments on making the payment of relevant emoluments.

(4) If the cumulative USC determined in accordance with paragraph (2) is less than the previous cumulative USC, the employer shall repay the difference to the employee on making the payment of relevant emoluments.

(5) If the cumulative USC determined in accordance with paragraph (2) is equal to the previous cumulative USC, the employer shall neither deduct nor repay USC on making the payment of relevant emoluments.

(6) Where the payment of relevant emoluments is the first such payment in the USC year, the employer shall deduct the cumulative USC as determined in accordance with paragraph (2) from the relevant emoluments on making the payment of those relevant emoluments and paragraphs (3), (4) and (5) shall not apply.