PAYE (Pay As You Earn) is paid on all income that arises from employment including wages, salaries, overtime, bonuses and BIK (Benefit In Kind). It is deducted at source by the employer and paid directly to Revenue. For example, there are two bands of income tax, anything up to the standard rate cut off point is taxed at 20%, while the rest of your income is taxed at the higher rate of 40%.
