What does basic payment mean? is it before tax is deducted or after tax is deducted?
Answers:
Your basic pay is your pay before any deductions are taken off,
tax- NI.
With no deductions
Basic Pay, is pay at the basic rate, ie, without any enhancements for overtime, acting-up, bonuses etc. and is calculated before any deductions for Income tax, National Insurance, Pension etc.
it means before the tax payment
Basic pay is the minimum you can earn (ie before overtime and bonuses). Gross pay is before tax. Net pay is after tax.
£150 basic pay
£ 20 overtime
£ 30 sales bonus
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£200 Gross Pay
£ 50 Deductions (eg tax and National Insurance)
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£150 Net Pay (ie what you take home)
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I know I have used very simple numbers but it is just to show you the differences.
I hope this helps
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