I'm a bit confused with regards to the difference between 'total gross pay' and 'gross for tax'. it seems that the 'gross for tax' is the amount after deduction of employer pension but not national insurance and income tax. while 'total gross pay seems to be the exact remuneration based on the hours worked.
my question is do I use 'total gross pay' or 'gross for tax' for calculation for annualised average income, [18600 under category A (6 months) using 26 weekly wage slips(non-salaried].
under PAYE from HM Revenue & Custom, the information for 'Taxable income from the company' uses gross Gross for Tax as weekly taxable income. from the example below, the amount classed as taxable income is 645.03.
example of the wage slip,
hours worked at 7.50 per hour..................................... 7.5 x 56 hours = 420.00
Sleep ins at 57.60 per night ............................................... 1 x 57.60 = 57.60
Holiday Pay at 7.20 per hour ................................................ 7.20 x 24 = 172.80
Total Hourly pay ...................................................................................... 650.40
Total Payments ....................................................................................... 650.40
(Deductions)
Income Tax .............................................................................................. 84.60
National Insurance..................................................................................... 59.21
Now Pensions Weekly................................................................................... 5.37
Total Deductions......................................................................................149.18
This Period
Total Gross Pay.........................................................................................650.40
Gross for Tax............................................................................................645.03
Earnings for NI.........................................................................................650.40
Payment period : Weekly
NET PAY..................................................................................................501.22
my question is do I use 'total gross pay' or 'gross for tax' for calculation for annualised average income, [18600 under category A (6 months) using 26 weekly wage slips(non-salaried].
under PAYE from HM Revenue & Custom, the information for 'Taxable income from the company' uses gross Gross for Tax as weekly taxable income. from the example below, the amount classed as taxable income is 645.03.
example of the wage slip,
hours worked at 7.50 per hour..................................... 7.5 x 56 hours = 420.00
Sleep ins at 57.60 per night ............................................... 1 x 57.60 = 57.60
Holiday Pay at 7.20 per hour ................................................ 7.20 x 24 = 172.80
Total Hourly pay ...................................................................................... 650.40
Total Payments ....................................................................................... 650.40
(Deductions)
Income Tax .............................................................................................. 84.60
National Insurance..................................................................................... 59.21
Now Pensions Weekly................................................................................... 5.37
Total Deductions......................................................................................149.18
This Period
Total Gross Pay.........................................................................................650.40
Gross for Tax............................................................................................645.03
Earnings for NI.........................................................................................650.40
Payment period : Weekly
NET PAY..................................................................................................501.22
