PAYE (Pay As You Earn)

PAYE, or Pay As You Earn, is a system for collecting income tax directly from employees' wages or salaries. Under this system, employers automatically deduct tax from their employees' paychecks before they receive them, sending it to the government. This means that employees do not have to handle tax payments separately. PAYE helps ensure that individuals meet their tax obligations gradually throughout the year, reducing the need for large, one-time payments at tax time. It also simplifies tax administration for both employees and tax authorities.