Payroll

[dianemjones]

Hiya

I was in college last night, and we had a payroll question........... really confusing, can anyone explain to me about the Tax codes, and what they mean and also N.I contributions ect..... just a bit of info to help me learn abit more about it?

cheers :lol:

[hollers]

Without knowing the question, a full reply would take ages!

Briefly though, tax codes indicate the annual amount that can be earned before income tax is deducted (known as free pay). For example, a code of 503L gives £5,035 pa before tax. Note however that a tax code beginning with 'K' means that the employee does not have any 'free pay' deducted from their gross, this code increases their taxable pay.

With regards to NIC, there are various tables depending upon the individual circumstances. The tables are used when calculating NIC due.

Does this help?

Sharon

[dianemjones]

Hiya

Yes this is fine thanks, i think i need to just read up about it in my work book, can you suggest what pages i should read either in the work book or tutorial book?

thanks again

[hollers]

Oh dear, I'm not studying payroll so can't help you there. Do you have contact with other students or perhaps your tutor could tell you?

Sharon

[dianemjones]

yes i do, i'm just being lazy!! :P

Thanks anyway