What is PAYE?
PAYE stands for ‘Pay As You Earn’. If you are an employee, you normally pay tax through PAYE.
Every time your salary is paid, your employer deducts Income Tax (IT), Pay Related Social Insurance (PRSI) and Universal Social Charge (USC) and pays the amount deducted to Revenue. PAYE ensures that the yearly amounts you have to pay are collected evenly on each pay day over the course of the tax year.
PAYE is also used for people who receive an occupational pension from a previous employer.
You may be entitled to tax credits and to tax reliefs and exemptions to reduce the amount of tax you pay.