Indicate with a tick (✓) whether each of the following statements is true or false - Leaving Cert Home Economics - Question 12 - 2022
Question 12
Indicate with a tick (✓) whether each of the following statements is true or false.
Pay as you earn (PAYE) is income tax taken from a person’s gross pay
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Worked Solution & Example Answer:Indicate with a tick (✓) whether each of the following statements is true or false - Leaving Cert Home Economics - Question 12 - 2022
Step 1
Pay as you earn (PAYE) is income tax taken from a person’s gross pay
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Answer
True. PAYE is indeed the income tax deducted directly from an employee's gross pay by the employer.
Step 2
Pay Related Social Insurance (PRSI) is a compulsory deduction paid by employers and employees
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Answer
True. PRSI is a mandatory contribution towards social insurance, and both employers and employees are required to pay it.
Step 3
Net income is money earned before any deductions are made
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Answer
False. Net income refers to the amount earned after all deductions, such as taxes and social insurance contributions, have been subtracted from gross pay.
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