Which employers are required to make monthly PAYE payments electronically?

The requirement for employers to make monthly PAYE (Pay As You Earn) payments electronically generally hinges on the size of the employer's payroll. Employers with a larger number of employees, specifically those with 250 or more employees, are mandated to make these payments electronically. This regulation ensures efficiency and accuracy in tax collection, as larger payrolls can significantly impact tax revenue and necessitate a more streamlined process.

Employers with fewer employees or a smaller payroll size, such as those with fewer than 250 employees, typically have the option to utilize alternative methods for making PAYE payments. The electronic filing and payment requirements are aimed primarily at those with higher volumes of transactions, making it easier for tax authorities to manage and track payments effectively. Therefore, the correct choice reflects the legal and regulatory framework governing PAYE payments for larger employers.