Common Payroll Questions for Irish Businesses in 2026

Once you employ someone, you must register as an employer and navigate the world of payroll accounts, payroll & tax deadlines, and general payroll bookkeeping tasks.

With real time reporting, Enhanced Reporting Requirements (ERR) and the introduction of auto-enrolment, employers now face a more complex compliance landscape than ever before.

In this article we have compiled simple answers the questions we hear most often from business owners and managers:

 

How do I register for payroll?

Before paying any employee, you must register as an employer with Revenue through ROS. You register as an employer for payroll purposes on Revenue Online Service (ROS). This ensures you notify Revenue of your name, address, and intention to pay staff.

You must use the TR1 form or the TR2 form on ROS to register your employees. 

Employees should register their new job through MyAccount so Revenue can issue an accurate Revenue Payroll Notification (RPN).

 

What deductions must employers include when running payroll?

As an employer, you must make the following tax and social insurance deductions from your employee’s gross pay:

  1. PAYE (Income Tax)
  2. Employee PRSI (Pay Related Social Insurance)
  3. Universal Social Charge (USC)
  4. Local Property Tax (LPT) (if instructed to by Revenue)
  5. Auto-enrolment contributions (if necessary)

These deductions are calculated using the employee’s RPN and must be reported to Revenue every pay period.

 

What is auto-enrolment?

Ireland’s auto-enrolment system, MyFutureFund, launched in late 2025 and is now fully operational.

If your employee is enrolled then you must deduct employee and employer contributions when running payroll. The National Automatic Enrolment Retirement Savings Authority (NAERSA) sends an Automatic Enrolment Payroll Notification (AEPN), for enrolled employees, through payroll software. NAERSA collects the employee and employer contributions for the employee fund.

Employers pay 1.5% of the employee’s annual salary into the fund in the first year. This will increase to 6% by year 10.

 

When are payroll taxes due?

Although payroll submissions are made in real time with each payrun, payments to Revenue are due by the 14th of the following month or 23rd if paying through ROS.

 

What happens if you don't pay your payroll taxes on time?

It REALLY doesn’t pay to not pay on time when it comes to payroll accounts!

If you have late or incorrect payroll submissions, Revenue may apply:
 
 
Accurate, timely payroll is essential to avoid compliance issues. If you find yourself too busy it makes sense to outsource payroll to a professional. 
 
 
 

What are Enhanced Reporting Requirements (ERR)?

Since January 2024, employers must report certain non taxable payments to Revenue before they are paid, including:
 
  • Remote working allowance
  • Travel and subsistence
  • Small benefit exemptions (where applicable)
 
ERR is mandatory and must be submitted electronically.

 

How much Employer PRSI do I need to pay? 

Employers in Ireland must pay Employer PRSI in respect of each employee.
 
Employer PRSI increased again on 01 January 2026. The amount of Employer PRSI you pay depends on how much your employee is paid. The current Employer PRSI Rates are:
 
 
Weekly Earnings Rate of Employers PRSI 
Up to €552 9%
Over €552 11.25%

 

As with other payroll taxes Employers PRSI is paid to Revenue by the 14th of the following month, so you pay January's Employers PRSI by 14th February. 
 
No employer PRSI applies for employees aged 66+.
 
Note that from 01 October 2026 Employer PRSI will increase to 9.15% on weekly earnings up to €552 and 11.4% if weekly earnings are above €552.
 
 
 

How often do I need to run payroll and pay employees?

Payroll can be processed:
 
  • Weekly
  • Fortnightly
  • Monthly

 

It is essential that regardless of the pay frequency, you must generate a payslip for each employee when you pay them.

 

 

How do I manage payroll for a company director?

In many cases company directors receive a salary from their company. If a company director is receiving a salary they need to be included for payroll.
 
Where a director receives a salary, the company must:
 
  • Register them as an employee
  • Operate PAYE/USC/PRSI
  • Include them in auto-enrolment if eligible
  • Issue payslips and report earnings in real time
 
 
It is important to note that even of a company director is paid a salary and included on payroll they must also file an annual Form 11 Tax Return.

 

 

What payroll records do I need to keep?

Employers must retain payroll records for six years, including:

 
These must be available for Revenue audit.
 
 
 

What is payroll software?

Given the complexities of payroll accounting and bookkeeping, investing in a tool to automate and manage your payroll processes is wise. By automating many payroll tasks, it reduces the risk of errors and helps businesses stay compliant with tax and employment regulations.

Payroll software is a digital tool used by businesses to manage and process employee pay. It helps employers calculate wages, deduct taxes, and apply statutory deductions.

Payroll software can also generate payslips, maintain payroll records, and ensure payments are processed accurately and on time.

There are many different payroll software applications available in Ireland suited to both small business and larger-scale enterprises inlcuding BrightPay, Thesaurus Payroll Manager, Sage Payroll and more. 

 

 

Are you interested in outsourcing your payroll?

Managing payroll in Ireland has become increasingly complex for employers. Between real-time payroll reporting, Enhanced Reporting Requirements (ERR), auto-enrolment pension obligations, and strict Revenue deadlines, even a small payroll mistake can lead to penalties or compliance issues.

For many business owners, outsourcing payroll can provide peace of mind. A professional payroll service ensures that employees are paid correctly, taxes are calculated accurately, and all submissions to Revenue are made on time.

At TaxAssist Accountants, we support businesses across Ireland with reliable and fully compliant payroll services. Our experienced team can manage everything from payroll processing and payslips to Revenue submissions and ongoing payroll compliance, allowing you to focus on running and growing your business.

If you would like help managing your payroll, contact us today to find out how we can support your business.

 

 

Need help with payroll?

Contact TaxAssist Accountants for a free, no-obligation consultation to get a fixed fee quote

1800 98 76 09

Or contact us

 

Last updated: 4th March 2026