Definition, Meaning & Synonyms
paye
Noun
/peɪ/
Definition
Paye refers to a system of income tax withholding where employers deduct tax directly from employees’ salaries before payment.
Examples
- Many employees in the UK are subjected to the paye tax system.
- The paye scheme makes tax collection easier for both businesses and the government.
- Understanding how paye works is crucial for financial planning.
Meaning
In the paye system, taxes are taken out of an employee’s wages and paid directly to the government by the employer, simplifying the process for both the employee and the tax authorities.
Synonyms
- Tax withholding
- Wage taxation
- Income tax deduction
