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Home Archive for category "Getting Started with PAYE"
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What payments does PAYE apply to?

Published on Sunday 18th September 2011, by in Getting Started with PAYE.
Payroll Freedom

PAYE is applied to all the payments that an employee receives as a result of working for you, including:

  • salary and wages
  • overtime, shift pay and tips – unless these are paid directly to your employee or they come out of an independent tronc
  • bonuses and commission
  • certain expenses allowances paid in cash
  • Statutory Sick Pay
  • Statutory Maternity, Paternity or Adoption Pay
  • lump sum and compensation payments – like redundancy payments – unless they’re exempt from tax
  • non-cash items like vouchers, shares or premium bonds – you apply PAYE to the cash value of items like this

via HM Revenue & Customs: PAYE for employers: the basics.

 
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PAYE for employers: the basics

Published on Monday 15th August 2011, by in Getting Started with PAYE, Introduction to PAYE.

PAYE (Pay As You Earn) is the system that HM Revenue & Customs (HMRC) uses to collect Income Tax and National Insurance Contributions (NICs) from employees’ pay as they earn it. The term ‘employee’ includes directors of limited companies.

As an employer, you have to deduct tax and NICs from your employees’ pay each pay period and pay Employer’s Class 1 NICs if they earn above a certain threshold. You pay these amounts to HMRC monthly or quarterly. If you don’t send the correct amount, or if you send it in late, you may have to pay interest.

After the end of the tax year you must send HMRC an Employer Annual Return form P35 and forms P14. Almost all employers are required to file this online.

If you are planning on processing your payroll yourself, then more help is available via HMRC link below.

via HM Revenue & Customs: PAYE for employers: the basics.

 

 
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