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What do the letters PAYE stand for? Write the answer in the space provided - Leaving Cert Business - Question 2 - 2015
Question 2
What do the letters PAYE stand for? Write the answer in the space provided. PAYE Outline two main features of the PAYE tax system: (i) (ii)
Worked Solution & Example Answer:What do the letters PAYE stand for? Write the answer in the space provided - Leaving Cert Business - Question 2 - 2015
Step 1
Step 2
Outline two main features of the PAYE tax system:
Answer
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Progressive Taxation: The PAYE tax system is designed to be progressive, meaning that it imposes a heavier tax burden on those with higher incomes. This feature aims to ensure that individuals contribute to taxation in proportion to their earnings.
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Direct Tax System: PAYE operates as a direct tax on income earned from employment. This means that the tax is collected directly from the employer before the employee receives their salary, streamlining the tax collection process.