What is Pay Advance BAC on my payslip?

Question

I received my payslip and noticed a large honorarium payment. However, in the deductions section, most of it is listed under "Pay Advance BAC," and the tax has taken the rest. This means I paid over $600 in taxes in one month, which is significantly higher than what I'm used to. I called the tax office, but they were unable to provide any clarity. Can someone help me understand what "Pay Advance BAC" means and why my tax deductions are so high?

Elyse Cole · Accepted Answer

HMRC does not do the monthly calculation - that is done by the EMPLOYER.

Your employer counted the advance AND the salary - ways to go - and then deducted tax on the basis that you was going to be earning at that rate all year.

Employer error - hopefully they get it right next payday.

As a matter of interest what tax code is on the pay slip?

Anonymous · Answer

Relax...it'll be sorted out next month. The tax tables have assumed you'll earn the same amount each month for the rest of the year (ie including the large honorarium). With luck you'll get a refund next month.
Standard stuff, so why on earth the taxman didn't know that is beyond me.

Anonymous · Answer

It is what they call off the books, or working black, the money in slang is given beneath the table, no report for the employer no report for the employee, really it is nice seeing that you don't have to pay any taxes and any money you've paid you get again. Employers do it for one of a kind explanations, one large one is they don't ought to pay with maintaining tax or employees comp, but when she has no longer agreed to it, they're relatively taking a hazard since if she received mad at them might take them to the labor board, huge nice $10,000.00 for starters......Enormous organizations cannot get away with it just small retail outlets. Due to the fact they've quite a lot of merchandise they purchase for cash and it never suggests! Like a bar owner who buy's whiskey retail at a liquor store, not legal, his approach of stealing from Uncle Sam!

Prof. Bella Zemlak IV · Answer

Most employers pay in arrears, to help new employees who are on monthly pay its not uncommon to give them an advance of salary when, or shortly after they start work. Does this apply to you? if not you'd better call them and enquire.

Shakira Kuhic PhD

What is Pay Advance BAC on my payslip?

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