Pay As You Earn - PAYE

A system of income tax withholding that requires employers to deduct income tax, and in some cases, the employee portion of social benefit taxes, from each paycheck delivered to employees. The pay as you earn (PAYE) system requires that employers then must remit the deducted amount to the proper government authority. The PAYE system was developed in 1944 by Sir Paul Chambers in the United Kingdom.

The pay as you earn system is a requirement in the United Kingdom for all salary earnings, as well as other forms of compensation, if the earnings are expected to meet the National Insurance Lower Income Level. PAYE is also utilized in Ireland and New Zealand, and other counties use similar systems, such as Australia's Pay As You Go (PAYG) withholding system.

Investment dictionary. . 2012.

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  • pay as you earn — noun The national system whereby income tax and national insurance is deducted by an employer from the salary or wages of an employee …   Wiktionary

  • Pay-as-You-Earn-Prinzip — Erhebung der Steuer im Rahmen des ⇡ Quellenabzugsverfahrens …   Lexikon der Economics

  • pay-as-you-go — /ˌpeɪ əz ju: gəυ/ noun 1. US same as pay as you earn 2. a payment system where the purchaser pays in small instalments as he or she uses the service …   Dictionary of banking and finance

  • PAY E — abbreviation for Pay As You Earn, a scheme for the collection of income tax chargeable under Schedule E under which tax is deducted by the employer from payments of salary, etc, to the employee and accounted for to the Inland Revenue. Collins… …   Law dictionary

  • pay — 1. v. & n. (past and past part. paid) 1 (also absol.) give (a person etc.) what is due for services done, goods received, debts incurred, etc. (paid him in full; I assure you I have paid). 2 a give (a usu. specified amount) for work done, a …   Useful english dictionary

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  • pay rise — ➔ rise2 * * * pay rise UK US noun [C] UK (US pay raise) ► HR, WORKPLACE an increase in the amount of money you earn for doing your job: »annual/average pay rises of over 3% »a big/huge/substantial pay rise ask for/demand/seek a pay ris …   Financial and business terms

  • pay envelope — pay ,envelope noun count AMERICAN 1. ) an envelope that contains your salary 2. ) the amount of money that you earn …   Usage of the words and phrases in modern English

  • pay — pay1 W1S1 [peı] v past tense and past participle paid [peıd] ▬▬▬▬▬▬▬ 1¦(give money)¦ 2¦(bill/tax/rent)¦ 3¦(wage/salary)¦ 4 pay attention (to somebody/something) 5¦(legal cost)¦ 6¦(say something good)¦ 7¦(good result)¦ 8¦(profit)¦ …   Dictionary of contemporary English

  • pay cheque — UK / US noun [countable] Word forms pay cheque : singular pay cheque plural pay cheques 1) a cheque from your employer for work that you have done 2) the amount of money that you earn in your job I d like a job with a nice big pay cheque …   English dictionary

  • pay·roll — /ˈpeıˌroʊl/ noun, pl rolls [count] 1 : a list of the people who work for a company and the amount of money that the company has agreed to pay them They cut him from their payroll. often used before another noun She s in charge of the company s… …   Useful english dictionary

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