Employing staff for the first time? Here’s What You Need to Know About Tax

1. Register as an Employer with Revenue

2. Onboard Your Employee Properly

• Ensure your new hire is registered with Revenue (they do this via MyAccount)
• You must register their employment through ROS before their first payday
• Revenue will then provide you with their tax credits, USC bands, and PRSI class

 

3. Use a Compliant Payroll System

• Real-time reporting of pay and deductions (under PAYE Modernisation)
• Automatic calculation of Income Tax, PRSI, and USC
• Support auto-enrolment
• Generation of payslips and year-end summaries

 

Alternatively, many business owners choose to outsource their payroll to a professional. 

 

4. Make Monthly Submissions and Payments

• Report payroll details to Revenue on or before each payday
• Pay the deducted taxes by the 23rd of the following month

5. Tax Saving Tips for Employers

• Cycle to Work Scheme: Buy a bike for your employee and deduct the cost from their gross salary which saves them up to 51% and reducing your PRSI bill
• TaxSaver Travel Scheme: Offer annual public transport tickets through salary sacrifice for similar savings
• JobsPlus: If hiring someone long term unemployed, you may qualify for a grant of up to €10,000 over two years

 

Why act now?

Last updated 2 Sep 2026 | First published 20 Feb 2015

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This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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