What is PAYE?
PAYE (Pay As You Earn) is the system used to collect Income Tax and National Insurance from employment. As an Employer wagecorp is required to make deductions for Income Tax and National Insurance on behalf of our employees and pay these over directly to the HMRC (HM Revenue and Customs’).
Deductions are made when payments to our employees or workers are facilitated, deductions are made on payments which include employees salary or wages, as well as other payments such as tips or bonuses, or statutory sick or maternity pay.
We deduct Income Tax and National Insurance for employees, and we also may need to make other deductions depending upon the personal circumstance of the employee such as student loan repayments or pension contributions. Our systems provide all the necessary calculations and reporting mechanism to ensure that deductions are made correctly and on time.
Wagecorp as an outsourced Payroll Umbrella is responsible to report employees’ income and deductions to the HMRC on or around each payday. We will issue pay slips accordingly and when required additional reporting documents and forms. Our payroll software systems make these calculations on your behalf, and we send separate reports to the HMRC to claim any reduction on what you owe to the HMRC.
Every time a new employee joins our Umbrella Company, if circumstances change we need to tell the HMRC.