Under PAYE, employers calculate and deduct taxes before paying employees. This system simplifies tax payments for employees, ensuring taxes are paid regularly and accurately.

Practical Example of PAYE (Pay As You Earn):

A teacher in the UK receives her monthly salary with Income Tax and National Insurance already deducted by her employer, as per the PAYE system.

Ready to become a true global employer? Talk to our team about global payroll services today.