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.
An employer has a legal obligation to deduct tax and NICs from the pay of employees' each pay period and pay Employer's Class 1 NICs if they earn above a certain threshold. The amount of tax deducted from an employee’s pay is determined by their tax code. The amount of tax deducted by the employer is usually paid over to HMRC on a monthly basis, although in some cases quarterly payment is available. After the end of the tax year the employer must send HMRC an Employer Annual Return (form P35 and forms P14).
Plummer Parsons has a dedicated payroll department that provides a payroll outsourcing service. Outsourcing your payroll can save time and money through reduced administrative costs and paperwork. With Plummer Parsons payroll, you can be confident that your payroll has been completed accurately, allowing you time to concentrate on other areas of the business.