Pay-as-you-go basis

Pay-as-you-go basis

A method of paying income tax in which the employer deducts a portion of an employee's monthly salary to remit to the IRS.
References in periodicals archive ?
Gerstner also promised that IBM would focus on this new utility model, delivering software, server time and data storage to customers on a pay-as-you-go basis, like power from a socket.
In the world of computing utility, customers can purchase storage, server and software from a central location on a pay-as-you-go basis, just as they can buy telephone services or electric power," Tapper explains.
The demo showed how public-domain Java applications and games can be offered free to customers as a value-added courtesy, and also showcased Speiros' built- in usage-metering services, which make it easy to deliver applications on a monthly rental or pay-as-you-go basis.
Unlike private pension plans where employee contributions are saved and invested, the Social Security system is financed on a pay-as-you-go basis.
In addition, the FASB proposes that additional amortization of the transition obligation be recorded if the computed amortization on a cumulative basis is less than the amount that would be recognized on a pay-as-you-go basis.
Since almost all companies account for the cost of these benefits on a pay-as-you-go basis, a practice that has been generally accepted for many years, interested parties will likely comment that a 15-year amortization period is too short and that greater flexibility is appropriate in transition.