Is taxable income for a given year computed by the days where the income was actually earned or the pay period in which the pay is issued?
For example, suppose the pay period for an employee spans across years (e.g. Dec 28, 2015 - Jan 8, 2016). How would the taxable income be computed?
Is it allocated roughly 40% to 2015 and 60% to 2016 or is it allocated entirely to 2016 when the pay is actually issued?