PAYE
Pay as you earn
Example
These PAYE income taxes seem way too high to me
Agreed. They are suffocating
PAYE definition by Slang.net
This page explains what the acronym "PAYE" means. The definition, example, and related terms listed above have been written and compiled by the Slang.net team.
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PAYE is a payment system for collecting money directly from an individual's wages or salary. The payment system is commonly used for income taxes and is also the name of a U.S. federal student loan relief program for paying back loans.
In the PAYE income tax system, employers deduct a portion of the worker's earnings before they are paid, and then send that amount to the tax authorities on behalf of the employee. In this context, PAYE ensures that taxes are paid regularly throughout the year instead of as a lump sum at the end of the tax period.
The PAYE system is used worldwide since it simplifies tax collection and helps prevent large tax bills for citizens at the end of the year. Additionally, PAYE automatically adjusts the tax amount based on the worker's income, ensuring that higher earners pay more, while lower earners contribute less. Countries may also use the PAYE method to collect social security contributions or other mandatory deductions since it is convenient for employees and governments to manage taxes.