PAYE (UK)

PAYE stands for “pay as you earn”, and is a method used by HMRC to automatically collect income tax and National Insurance contributions from an employee’s pay before it reaches their bank account or a payslip is generated.

Employers will have to factor in deductions like these, as well as things like Workplace Pension contributions and student loan repayments, when running staff payroll at the end of a pay period.

Running payroll can be time-consuming, and often fraught with errors, for employers of staff who are paid by the hour. People management platforms like RotaCloud, which allow managers to generate payroll reports based on accurate employee attendance data, can help save managers time and reduce instances of staff being paid more or less than they are entitled to.