2014/15 Payroll Calculator

What is payroll?

Payroll refers to the process of calculating and distributing employees' wages and salaries. It includes deducting taxes, National Insurance contributions, and other mandatory deductions from employees' gross pay to determine their net pay.

The 2014/15 tax year was a significant period for UK payroll due to changes in tax thresholds and National Insurance rates. This calculator helps you understand the payroll costs for that specific tax year.

How to use this calculator

Enter your employee's gross salary and any additional deductions to calculate the total payroll cost. The calculator will show you the breakdown of deductions including:

• PAYE tax
• National Insurance contributions
• Pension contributions
• Student loan deductions (if applicable)

The result will show the total payroll cost and the net pay after deductions.

Formula used

The payroll cost is calculated as follows:

The exact amounts for each deduction depend on the employee's tax code and the applicable rates for the 2014/15 tax year.

Worked example

Let's calculate the payroll cost for an employee with a gross salary of £30,000 in the 2014/15 tax year.

1. Gross salary: £30,000
2. PAYE tax: £4,500 (assuming standard tax code)
3. National Insurance: £1,200
4. Pension: £1,500 (5% of gross salary)
5. Student loan: £0 (not applicable)

Total deductions: £4,500 + £1,200 + £1,500 = £7,200

Net pay: £30,000 - £7,200 = £22,800

Total payroll cost: £30,000 (gross) + £7,200 (deductions) = £37,200