Photo AI
2. (a) What do the letters PAYE stand for? Write the answer in the space provided - Leaving Cert Business - Question 2 - 2015
Question 2
2. (a) What do the letters PAYE stand for? Write the answer in the space provided. PAYE (b) Outline two main features of the PAYE tax system: (i) (ii)
Worked Solution & Example Answer:2. (a) 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
-
Progressive Taxation: The PAYE system is progressive, meaning that higher income earners pay a larger percentage of their income in tax compared to lower earners. This helps to ensure that those who have the ability to pay more contribute a fair share towards public services.
-
Efficiency: The PAYE system is efficient because it allows for tax to be collected at the source. Employers are responsible for deducting the tax from salaries and sending it to the government, which reduces the administrative burden on individuals and helps ensure timely tax collection.