What is payroll?
Payroll is a list of your business’ employees and the amount of money that needs to be paid over a specific time-frame. It also includes the calculation and distribution of your employees’ wages and taxes.
You can choose to either run your payroll inside your business, or you can choose to outsource your payroll to professionals.
Whether you will be outsourcing your payroll or running it in-house it’s important to know the basics of what is involved in a payroll.
In this guide we will explain the basics of how to do payroll in Ireland.
How do I register as an employer in Ireland?
Before you hire your employees, you will need to register with Revenue.
If you cannot register online, you can use the following forms;
- TR1, if you are a sole trader or partnership,
- TR2, if you are a limited company.
These forms can be found on Revenue.ie and must be posted or uploaded to Revenue once they are filled out.
If you have not registered as an employer but Revenue has reason to believe you should be registered, they can automatically register you.
What do I need to run a payroll system?
1. Employee personal information
You need to collect information from your employees. This information will include their full name, date of birth and PPS number so you know the exact person you need to pay.
2. Complete records of employees working and non-working time
It is important to keep track of your employees’ attendance which includes holiday leave and sick leave. Tracking attendance can help to ensure that employees are being paid the correct amount for the time they have worked
3. Understand the taxes employees pay
You must deduct taxes from your employees’ pay. These taxes include PAYE, PRSI and USC. The amount deducted will depend on how much your employee earns and any allowances or credits the employee might claim.
Employers in Ireland pay 8.6% employer PRSI on weekly earnings up to €376.
If you are paying weekly earnings over €376 you will pay 10.85% employer PRSI.
PAYE Modernisation, or Real Time Planning, is the new payroll system in Ireland. The new Irish payroll system allows you to see your pay and tax deductions in real time on Revenue’s website.
What changes were made to payroll in January 2019?
You need to report your employee’s taxes and pay to Revenue on or before their payday.
Revenue Payroll Notification
The new Revenue Payroll Notification, or RPN, gives you the information you need to deduct tax from your employees. This replaced the P2C tax credit certificate.
Every employee in a business now has a unique number called The Employment Identifier which is included in the payroll submission and RPN.
Earning And Deductions Certificate
This replaced current filing forms like P60s, P45s, and P30s. This certificate can be found in MyAccount on Revenue's website.
What are the benefits of outsourcing your payroll?
- You have peace of mind that your business' payroll is compliant with the new PAYE Modernisation system.
- Save time and focus on other aspects of your business.
- You will not need to keep up to date with employment tax legislation.
- Confidentiality around staff salary and compensation.
Let us take care of your payroll
Our specialists can take care of your business’ payroll for you with costs as little as €39 + VAT per month for up to 5 employees.
If you would like to receive a quotation for payroll services, please fill out the form below to receive a proposal.