Employing staff for the first time? Here’s What You Need to Know About Tax
Hiring your first employee is an exciting development for your business, but it also brings important payroll and tax responsibilities. Here are the key steps you need to take to set up payroll correctly and meet Revenue requirements:
1. Register as an Employer with Revenue
Before paying anyone, you must register for Employer PAYE/PRSI via the Revenue Online Service (ROS). This is quick to do and essential for accessing employee tax details.
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
Modern payroll software links directly with ROS and ensures:
- 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
You must:
- Report payroll details to Revenue on or before each payday
- Pay the deducted taxes by the 23rd of the following month
There’s no more P30 or P35 as those forms were phased out under PAYE Modernisation.
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?
Revenue’s real-time reporting system means mistakes are spotted quickly and penalties can add up fast. Getting it right from day one protects your business and your team.
Looking to outsource your payroll?
Contact TaxAssist Accountants for a free, no-obligation consultation to get a fixed fee quote
Or contact usLast updated: 2nd September 2026