Double-entry bookkeeping 2: books of prime entry, accounting systems
. Employer's NIC is a deduction from each employee's gross pay.

. Every organisation that takes on employees acts as a tax collector for the government.

. Gross pay – PAYE – employee's NIC – other deductions = net pay

. Monthly pay = annual gross pay ÷ 12.

. PAYE = NIC.

. Weekly gross pay for hourly paid employees = hours worked in the week x the contractual rate of pay per hour.

. Total wages and salaries expense = the gross pay of all the employees of an entity.

. PAYE deductions from gross pay reflect each employee's obligation to pay income tax on their earned income.