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As an employer, you are responsible for withholding various taxes from employees’ wages. After you subtract all of the taxes and other deductions, money left over is considered take-homepay. Read on to learn more about what is take-homepay and how to calculate it. What is takehomepay?
As of 2012, the introduction of auto-enrolment mandates all employers to provide a workplace pension. More complex aspects like varying tax relief methods and payroll integration will be covered later. Which Tax Relief Method is Used? Relief at Source pension contributions from your employee are taken after tax deduction.
It’s worth remembering that it’s an employee’s responsibility to check they’re on the right tax code, as it impacts how much tax they pay – whether it’s too much tax or too little. For the 2021/22 tax year (and through to 2025/26), the tax code for most people under 65 who only have one job or pension is 1257L.
As an employer, you’re obliged to provide your staff with a workplace pension – a mandate made compulsory by the UK government in 2012. In a nutshell, this mechanism allows employees to maintain their pension contributions and even enjoy a slightly higher take-homepay. Is your provider helping with this?
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