Employment Earnings

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August 31, 2024 4 min read Definitions

PAYE: The System for Collecting Income Tax and NICs from Employment Earnings

Taxation Economics Finance PAYE Income Tax NICs Employment Earnings Tax Collection

PAYE (Pay As You Earn) is the system for collecting income tax and National Insurance Contributions (NICs) from employees' earnings. This method involves employers deducting taxes from wages before paying employees, ensuring timely and accurate tax collection.