News and Information
The world of Payroll can be confusing at times, particularly as legislative changes and updates happen so frequently.
In Payroll, what is the difference between Income Tax and National Insurance?
An employee’s payslip will usually show two deductions on the right-hand side: one called tax and one called National Insurance, employee NI, NIC, or simply NI. The tax is Income Tax, often called PAYE tax because it is deducted through payroll. PAYE stands for Pay As You Earn — a rare example of payroll terminology doing what it says on the tin.
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