What Is Payroll?

Payroll is a list of your business’ employees and the amount of money they are to be paid over a specific period. It is also the process of calculation and distribution of wages and taxes of your employees.

So, if your business has employees you will need to register as an employer and run payroll.

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How Do I Register As An Employer?

You can register as an employer online via the Revenue Online Service (ROS), or myAccount.

If you have 10 or more employees, you must use ROS to file tax returns and make payments.

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.

Employer PRSI

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.

What Is Needed To Run Payroll?

Whether you outsource your payroll or process it yourself, there are 3 things you will need to complete payroll:

 

  • Employee Information

You need to collect information from your employees. This information will include their full name, date of birth and PPS number.

  • Time Off

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.

  • Taxes

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.

PAYE Modernisation

PAYE Modernisation is the new payroll system in Ireland. PAYE Modernisation brings payroll into the 21st century. This system enables you to see your pay and tax deductions in real time on Revenue’s website.

But, What Changes Have Been Made?

  • Reporting

    You will 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, will give you the information you need to deduct tax from your employees. This has replaced the P2C tax credit certificate.

  • Employment Identifier

    Every employee in a business will now have a unique number called The Employment Identifier which will be included in the payroll submission and RPN.

  • Earning And Deductions Certificate

    This has replaced current filing forms like P60s, P45s, and P30s. This certificate can be found in MyAccount on Revenue's website.

Why Outsource Your Payroll?

  • You have peace of mind that your business' payroll is compliant with the new PAYE Modernisation system.
  • To 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 from €39 + VAT per month.

Please fill out the form below to receive a proposal for our payroll services.

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Find out what changes you need to make for PAYE Modernisation before January 1st 2019.

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Startup Offer

Have you set up a new company? Accountant Online's Startup Offer includes payroll services from €49 + VAT per month.

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