The amount payable in respect of each employee may be worked out either by reference to standard contribution tables supplied to the employer by HMRC (for the limited number of employers to whom this still applies, see below) or, more precisely, by taking the appropriate percentage of the gross pay for the earnings period. The same method must apply to the employee throughout the tax year unless they either change to another payroll (eg from one subsidiary to another) which applies the other method, or the employer themself alters the payroll system (eg from manual to computer)1. However, if the period for which payment is made is not an exact multiple of a week or a month, the table cannot be applied and the exact percentage method must be used, based on the adjustments to the weekly-based earnings limits referred to at E8.261.
This method involves the calculation of the employee's earnings for the earnings period in question (adjusted as outlined at E8.249D where that period is other than a week) and
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