...my wage slip?
How come when you get your first payslip that you look at it with a mix of pride and frustration?
It is because the final figure that you had worked out in your head does not match the figure on the slip and ultimately being paid into your bank account.
Why is that?
2 things to consider
- Income tax
- National insurance
This shows what happens to Sam’s salary….
Sam starts his first job for £16,000 a year. |
Sam doesn’t pay any tax on this amount |
£5,435 |
£0 |
Sam pays 20% on this amount |
£10,565 |
£2,113 |
|
Total amount earned £16,000 |
Total tax paid £2,113 |
Sam's payslip
- NI Number: This is your National Insurance number
- Tax Code : This tells your employer how much tax to take out of your pay
- Gross Pay : This is the total pay that your employer owes you for the period shown before any tax or other deductions are made.
- Tax This Period : This is the amount of income tax that you have to pay to the government for this tax period. It will be deducted from your gross salary.
- National Insurance : This is the amount of NI you will have to pay the Government this period. It will be deducted from your gross salary.
- Total Deductions : This is the total of everything you have had deducted from your salary.
- Employer NIC: This is the amount of NI your employer has to pay to the Government on your behalf. This has to be paid by law.
- Net Pay : This is what you have left!
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