A system of deducting tax, national insurance, social security and other payroll tax contributions owing by employees at source when their employer makes payment to them.
PAYE stands for “pay as you earn“.
The employer is responsible for making payment of the tax owing by their employees to the relevant tax authority within their jurisdiction.
PAYE systems became commonplace after the Second World War as the level of personal income taxes and social security contributions owing by employees increased as the level of average earnings rose in most developed countries. Rules vary from country to country, but the system itself is commonplace.
Thanks for reading this post.
You can share this post on social media of your choice by clicking these icons:
You can subscribe to this blog's daily email here.
And if you would like to support this blog you can, here:
