Understanding Payslips

What is a payslip?

• A summary of your earnings and deductions

• A document stating how much tax you've paid in a tax year

• A document you receive when your employment ends

• A document showing your tax code

What does the gross pay on a payslip represent?

• Full pay before any deductions

• Deductions that change each payday

• Deductions that don't change from payday to payday

• Amount after all deductions have been taken off

What is a payroll number?

• A number representing the tax period

• A number indicating the rate of tax

• A number used to identify employees

• A number showing the amount of take-home pay

What information would you be unlikely to find on a payslip?

• Payroll number and tax period

• Expenses and pensions

• Student loan and workplace benefits

• Bank account details

What does the tax code on a payslip indicate?

• Rate at which you're taxed

• Amount of income you can earn tax-free

• Amount you've earned so far this year

• Method of payment for your earnings

What is the meaning of total net pay on a payslip?

• Amount you've earned before deductions

• Amount you actually receive in your bank account

• Amount of income you can earn tax-free

• Amount you've earned so far this year

What does year-to-date (YTD) represent on a payslip?

• Amount you've earned before deductions

• Amount you actually receive in your bank account

• Amount of income you can earn tax-free

• Amount you've earned so far this year

What is the tax free allowance for 2022/2023

• £10,250

• £12,500

• £12,570

• £13,570

Your employer requires your permission to deduct income tax from your gross pay?

• True

• False

Which of the following is not a statutory deduction?

• Student Loan

• Union fees

• National Insurance

• Income tax