Everything Irish employers need: payroll calculators, compliance checklists, onboarding wizards, and templates — all updated for Budget 2026.
| Mistake | Risk | Prevention |
|---|---|---|
| Submitting PSR after pay day | Late filing penalty, interest at 0.0219%/day | Use payroll software or reminders to submit on or before pay day |
| Wrong PRSI class | Incorrect deductions, Revenue underpayment/overpayment | Confirm class before first pay. Class A = most private employees |
| Missing emergency tax for new employees | Under-deduction of PAYE, liability falls on employer | Register employee with Revenue before first pay day |
| Missing employee pension deduction | Employee may have less retirement savings; Revenue may query | Check P2C for pension-related tax credits and deduct contributions correctly |
| Not processing BIK correctly | Under-declaration of taxable pay; Revenue audit exposure | Add BIK to gross pay in PSR for PAYE and USC purposes |
| Paying PAYE/PRSI late | Interest at 0.0219%/day from 24th of following month | Set a standing order or calendar reminder for the 23rd |
| Poor payroll records | Cannot respond to Revenue audit or employee queries | Keep payroll records for minimum 6 years — digital or physical |
d’Emilia Accounting manages payroll for Irish employers — PAYE Modernisation submissions, employee setup, corrections, Revenue queries, and compliance support.
Enquire About Payroll ServicesRunning payroll in Ireland involves four ongoing obligations: real-time reporting to Revenue, deducting the correct taxes from employees, paying the employer's own PRSI contribution, and keeping compliant records. This guide covers each in full.
PAYE Modernisation, introduced in January 2019, transformed how Irish employers interact with Revenue. Instead of a single annual return, every payroll event is reported in real time. This means Revenue sees every employee's pay immediately, enabling more accurate tax assessments throughout the year and reducing end-of-year corrections.
Any business taking on its first employee must first register as an employer with Revenue. This is done via ROS (Revenue Online System). The registration process assigns an employer PAYE reference number, which is required for all payroll submissions. Registration should be completed before the first pay day — not after.
PRSI classes determine both the employee and employer contribution rates. The most important distinction for small employers is between Class A (private sector employees, most common) and Class S (self-employed and proprietary directors). Getting this wrong can result in under-payment of PRSI and a Revenue liability.
Benefits in Kind (BIK) are non-cash benefits provided by an employer that have a taxable value. Common examples include company cars, private health insurance, and preferential loans. BIK must be included in the employee's gross pay for PAYE and USC purposes. Different BIK types have specific valuation rules — for example, company car BIK is calculated as a percentage of the car's original market value.
Company directors with a proprietary interest (15%+ shareholding) are classified as self-employed for PRSI purposes — Class S, not Class A. They do not receive the standard PAYE tax credit. They must file an annual Form 11 for self-assessment. However, their salary is still processed through the company's payroll in the same way as other employees.
Revenue can audit payroll records going back six years. All payroll records — including PSRs, payslips, Tax Credit Certificates, and PRSI records — must be retained for a minimum of six years. Under employment law, working time records must be kept for three years, and accident/incident records for ten years.
Under PAYE Modernisation, you must submit a Payroll Submission Request (PSR) on or before every pay day. If you pay weekly, you submit weekly. If monthly, you submit monthly. The PSR must include every employee's gross pay, PAYE, USC, and PRSI for that pay period. Payment of the PAYE/PRSI liability is separate and due by the 23rd of the following month.
Employer PRSI for Class A employees is 8.8% on weekly earnings up to €441 (annual €22,932), and 11.15% on all weekly earnings above €441. For most full-time employees on typical Irish salaries (€30,000+), the rate will be 11.15%.
No — small employers with a small number of employees can submit PSRs manually through Revenue's ROS Online Service. However, payroll software (such as Quickbooks, Sage, BrightPay, or Thesaurus) automates the submission process and reduces the risk of errors. For employers with five or more employees, payroll software is strongly recommended.