Results for PAYE
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abbr.
  1. pay as you earn
  2. pay as you enter

 
 
is short for:

Meaning Category
Pay As You EnterBusiness->General
Pay as You EarnGovernmental->Police

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WordNet: PAYE
Note: click on a word meaning below to see its connections and related words.

The noun has one meaning:

Meaning #1: the British system of withholding tax
  Synonym: pay as you earn


 
Wikipedia: PAYE
Paye is also an archaic term for caulking.


PAYE (pay-as-you-earn) is an amount collected by employers when making salary or wage payments to employees on behalf of the taxation authority. The amount deducted paid to the tax authority and is, in effect, a provisional payment of tax on the employee's income. The amount withheld is determined by tax tables that determine the amount of tax to be deducted for the salary or wage paid to the employee. Individual countries may apply this principle differently in order to streamline the administration process - the tax code in the UK is an example of such a variation. In some countries, the PAYE system is also used to collect national insurance or medical insurance contributions.

PAYE is intended to collect the expected amount of tax that an employee will have to pay during a year, so that the amount of tax payable at the end of the year is diminished. The tax authority determines the top-up or refund amount after the taxpayer has submitted their tax return. The final taxable income amount submitted by a taxpayer may end up being more or less than their salary or wage income because of other forms of income such as interest or dividends, which may not have been taxed or because of deductable expenses such as negative gearing costs on investments.

PAYE is, in effect, similar to withholding tax, but is generally considered administered separately by the tax authority. Submissions of PAYE by the employer are generally made with reference to the tax file number of the employee whilst submissions of withholding tax may be in respect of parties that are not even domestic tax payers. PAYE is generally calculated by the payroll software used by the employer, while withholding tax is an administrative function of accounts payable or the treasury department.

The PAYE system of income tax collection is used by most countries in the world. The UK introduced it 1944 [1], following trials in 1940-1 [2] The system is also known by different names in different countries, and may be combined with other tax collection processes. Australia, for example, supplemented its PAYE system called PAYG[3] which also administers the collection of VAT and business income. Canada and the USA also use a PAYE type of tax collection system - although it is not known by this name.

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Copyrights:

Dictionary. The American Heritage® Dictionary of the English Language, Fourth Edition Copyright © 2007, 2000 by Houghton Mifflin Company. Updated in 2007. Published by Houghton Mifflin Company. All rights reserved.  Read more
Abbreviations. STANDS4.com - The source for acronyms and abbreviations. Copyright ©2006 STANDS4 LLC. All rights reserved.  Read more
WordNet. WordNet 1.7.1 Copyright © 2001 by Princeton University. All rights reserved.  Read more
Wikipedia. This article is licensed under the GNU Free Documentation License. It uses material from the Wikipedia article "PAYE" Read more

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