Every year in Ireland – Landlords, Subcontractors, Freelancers, Small Business Owners, and Self-Employed individuals must pay tax on their employee’s income made during the year.
Employers who fail to engage with Revenue or who persistently breach the PAYE Regulations are liable to a €4,000 penalty per offense under section 987 of the Taxes Consolidation Act 1997. The details can be found here
At Peak Accounting Solutions we are dedicated to providing you the best Payroll Service. We will provide the breakdown of your monthly Payroll along with what Revenue will receive using our bespoke software.
What is payroll?
Payroll is the process of creating payslips through dedicated payroll software which is government compliant and calculated using the most current tax rates, taking into account any tax-free deductions and expenses.
Tax bands are set from year to year, and the income amounts liable for the standard tax rate of 20% were raised in 2019 to €35,300 for single or widowed people with no children, €39,300 for single or widowed individuals with a child, and €44,300 for married employees. Any income beyond those amounts is taxed at 40%. There are several tax credits and reliefs that may offset employees’ tax liabilities, which they may apply for through Revenue.
The different tax rates can be found here
Software’s in Ireland you can use for a FREE Trail
There is much software that can be used to create your employee payslips in Ireland. The one that we recommend is Bright pay which interlinks with Revenue (ROS) and also receives data from ROS to update your tax allowance and are all FREE
We would RECOMMEND Bright pay, Get your FREE TRIAL by clicking on the picture.
The Tax Year for payroll
The tax year in Ireland runs from 1 January to 31 December.
If you have just moved to Ireland to start work, you will need to apply for a PPSN number, you can do this here: Personal Public Service Number (PPSN)
What do I pay
You will normally pay Income Tax (IT), Pay Related Social Insurance (PRSI) and Universal Social Charge (USC) on your employment income. See the tax rate band and tax credits sections for more information on what you pay tax on.
This can all be done through ROS
Key Dates for Payroll
The Key dates for this are the 14th of the month after submission. For example, if it is for January pay, we need to submit by 14th February.
Then this can be submitted via the ROS RDI (ROS debit instruction) on the 5th of the next month.
If you are an Umbrella Employee or a Limited Company Director please contact us for how to get the most out of your payroll service at firstname.lastname@example.org.