RD 51Calculation of all-inclusive pay

1. This section applies to determine the amount of an employee’s all-inclusive pay for the purposes of section RD 50.

2. The amount of an employee’s all-inclusive pay is calculated using the formula—

   $cash\; pay\; -\; tax\; on\; cash\; pay\; +\; taxable\; value\; of\; all\; fringe\; benefits.$

   Where:

3. If the employee is a major shareholder, the items in the formula are—

4. cash pay is the cash pay of the employee for the income year in which the fringe benefit is attributed that is paid to the employee by the employer or a related employer, and includes—
   1. a dividend and interest derived by the employee from their employer; and
   2. a dividend and interest derived by the employee from a related employer:
5. tax on cash pay is the tax on the cash pay of the employee calculated using the basic rate of income tax set out in schedule 1, part A, clause 1 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits),—
   1. treating the cash pay as if it were the only taxable income of the employee:
6. taxable value of all fringe benefits is—
   1. the taxable value of all fringe benefits attributed to the employee in the tax year; and
   2. the taxable value of all fringe benefits attributed to a person associated with the employee in the income year if the person does not receive the fringe benefits as an employee of the employer.

7. If the employee is not a major shareholder, the items in the formula are—

8. cash pay is the cash pay of the employee for the tax year in which the fringe benefit is attributed that is paid to the employee by the employer or a related employer:
9. tax on cash pay is the tax on the cash pay of the employee calculated using the basic rate of income tax set out in schedule 1, part A, clause 1,—
   1. treating the cash pay as if it were the only taxable income of the employee:
10. taxable value of all fringe benefits is the taxable value of all fringe benefits attributed to the employee in the tax year.

11. In this section, the cash pay of a shareholder-employee who derives an amount of pay referred to in paragraph (b) or (c) of the definition of pay in subsection (6) is treated as derived in the income year following the income year in which it was received or attributed.

12. In this section,—

    pay means—

    1. salary or wages; and
    2. income, other than from a PAYE income payment, to which section RD 3B or RD 3C applies; and
    3. an amount attributed under section GB 29 (Attribution rule: calculation); and
    4. an extra pay; and
    5. a schedular payment

    related employer means a branch or division of an employer, or a person associated with the employer.