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d’Emilia Accounting handles employer registration, PAYE Modernisation setup, monthly payroll submissions, and Revenue queries for Irish employers.
Get Help with Your First HireTaking on your first employee is one of the most significant milestones for any Irish business. It also creates a set of legal and tax obligations that begin before the first pay day and continue for the duration of the employment.
Before you can process payroll, your business must be registered with Revenue as an employer. This is done through ROS (Revenue Online System). Once registered, you will be able to add employees, receive their Tax Credit Certificates (P2C), and submit Payroll Submission Requests (PSRs) on each pay day.
Since January 2019, Irish employers have been required to report payroll details to Revenue in real time — on or before each pay day. This system, PAYE Modernisation, replaced the old end-of-year P35 return. Every pay event must be reported through a Payroll Submission Request (PSR). There is no longer a year-end payroll return.
Under the Employment (Miscellaneous Provisions) Act 2018, employers must provide a written statement of core employment terms within 5 days of the employee's start date. The statement must include: employer name, place of work, job title, commencement date, pay rate and frequency, and expected hours. A full written contract (not just the statutory statement) is strongly recommended.
The correct PRSI class determines both the employee and employer PRSI rate. Class A applies to most private sector employees earning more than €38 per week. Company directors with a proprietary interest (15%+ shareholding) are typically Class S (self-employed). Getting the wrong class can create Revenue liabilities and penalties.
Ireland's auto-enrolment pension scheme is expected to be operational in 2026, following legislation under the Automatic Enrolment Retirement Savings System Act 2024. Under the scheme, employees aged 23–60 earning above €20,000/year who are not already in an occupational pension scheme will be automatically enrolled. Both employer and employee will make contributions. Employers should monitor official updates from the Department of Social Protection and the Pensions Authority for the exact commencement date and current requirements.
Under the Sick Leave Act 2022, employers must provide statutory sick pay. As of 2026, employees are entitled to 5 days of employer-paid sick leave per year (at 70% of normal daily pay, capped at €110/day). This entitlement increases to 7 days in 2026. Employers cannot require staff to use annual leave to cover sick days.
Register via ROS (ros.ie). Select "Register a new tax" and choose "Employer (PAYE/PRSI)". You will need your business's tax reference number. Once registered, you can add employees by entering their PPS number, start date, and employment details. Revenue will issue a Tax Credit Certificate (P2C) for each employee.
Revenue requires that payroll be submitted on or before each pay day. If you pay an employee without submitting a PSR, you may be liable for late filing interest (0.0219%/day on the PAYE/PRSI due) and potentially a penalty for non-compliance. Register as an employer before the first pay day and submit the PSR on the day of payment.
Yes. You must provide a written statement of core terms within 5 days under the Employment (Miscellaneous Provisions) Act 2018. Additionally, a full employment contract — covering probation, notice, confidentiality, and termination — is strongly recommended to protect both parties. The Workplace Relations Commission (workplacerelations.ie) provides guidance on what must be included.