How to Run Payroll Yourself in Ireland: PAYE Guide

Last reviewed: October 2026. Payroll rules and rates can change, so check the latest Revenue and Workplace Relations Commission guidance before processing a pay run.

Running payroll yourself in Ireland can be manageable when you have a small team, a regular pay pattern and reliable payroll software. However, payroll is more than transferring net pay to an employee’s bank account. As an employer, you are responsible for calculating deductions correctly, reporting payroll information to Revenue, keeping records and paying the amounts due on time.

This guide explains the main steps involved in Do It Yourself Payroll in Ireland. It is intended for Irish employers, small businesses and individuals who are considering running payroll themselves rather than using payroll services in Ireland.

What does running payroll yourself in Ireland involve?

A typical Irish payroll run involves:

1.Confirming the pay period, pay date and employee details.

2.Collecting hours, salary changes, overtime, bonuses, commissions, expenses and leave information.

3.Requesting the latest Revenue Payroll Notification, or RPN, for each employee.

4.Calculating gross pay, PAYE Income Tax, PRSI, USC and any other relevant deductions.

5.Calculating the employer’s PRSI cost.

6.Reviewing the payroll and approving the net pay.

7.Issuing a payslip to every employee.

8.Submitting payroll details to Revenue on or before the pay date.

9.Paying employees and retaining payroll records.

10.Paying the employer’s PAYE, USC and PRSI liability by the relevant Revenue deadline.

The process is similar whether employees are paid weekly, fortnightly or monthly, but the calculations and reporting must match the actual pay date and pay frequency.

Step 1: Register as an employer and set up payroll records

Before paying an employee, make sure the business is registered with Revenue as an employer. You will need the correct employer registration details and access to the Revenue Online Service (ROS), unless you fall within an approved exception from electronic filing.

Create a secure payroll record for each employee. Important information may include their name, address, PPS number, employment start date, pay frequency, salary or hourly rate, bank details, PRSI class and relevant benefits. You should also keep records of hours worked, holiday pay, sick pay, overtime, bonuses, expenses and any deductions authorised by the employee or required by law.

Payroll data is personal information. Limit access to people who need it, use strong security controls and retain records for the appropriate period. Do not use an unprotected shared spreadsheet as the only control for sensitive payroll data.

Step 2: Get the latest Revenue Payroll Notification (RPN)

The RPN is central to PAYE payroll in Ireland. It provides the employee’s current tax credits, Income Tax cut-off points, USC cut-off points and other information needed to calculate deductions. It may also include relevant pay and tax information from earlier employments during the year.

You must use the latest RPN available for each employee. Payroll software will often retrieve RPNs automatically. If you are processing payroll without software, Revenue provides ways to request RPNs through ROS.

If an RPN cannot be obtained, Revenue requires the employer to use the emergency basis until the correct information is available. This can result in higher deductions for the employee, so resolve missing or incorrect employee details promptly. Never guess an employee’s credits or tax basis.

Step 3: Calculate gross pay and PAYE

Start with gross pay for the pay period. For a salaried employee, this may be the agreed salary divided across the number of pay periods. For an hourly employee, calculate approved hours at the correct rate and add eligible overtime, allowances, commission or bonuses.

Next, calculate PAYE Income Tax using the employee’s RPN and the correct tax basis, such as cumulative, Week 1 or Month 1. The calculation should reflect the employee’s year-to-date pay, tax credits and cut-off points where the cumulative basis applies.

PAYE is deducted from the employee’s gross pay and later remitted to Revenue by the employer. It is not an extra cost to the employer in the same way as employer PRSI; it is money withheld from the employee’s pay. A common DIY payroll mistake is to confuse the employee’s deduction with the employer’s total payroll cost.

Use payroll software or a current Revenue-approved calculation process rather than relying on a static online calculator. Tax credits, thresholds, benefits and special payments can affect the result.

PRSI payroll in Ireland: employee and employer contributions

Pay Related Social Insurance, or PRSI, is made up of an employee contribution and an employer contribution where applicable. The correct PRSI class determines the rate used. Do not assume that every employee has the same PRSI treatment: check the employee’s circumstances and current Department of Social Protection guidance.

For each payroll submission, you must record the employee’s gross pay for PRSI purposes, the employee PRSI contribution, the employer PRSI contribution, the PRSI class and the number of contribution weeks for the pay period. If an employee is paid fortnightly, the submission should reflect two weeks where appropriate; do not simply enter a cumulative number of weeks for the year.

Employer PRSI is an additional employment cost and should be included when budgeting for staff. Employee PRSI is deducted from the employee’s gross pay. Keep the tax and USC amounts separate from PRSI in your accounting records, as Revenue notes that PRSI deductions are paid to the Department of Social Protection.

USC payroll in Ireland: what employers need to know

The Universal Social Charge, or USC, is generally calculated on an employee’s gross income using the employee’s USC rate bands and any relevant exemption or reduced-rate treatment shown in the RPN. USC is separate from PAYE Income Tax and PRSI, so show it separately in the payroll calculation and on the payslip.

For 2026, Revenue’s standard USC bands are 0.5% on the first €12,012, 2% on the next €16,688, 3% on the next €41,344 and 8% on the balance. Revenue also states that the 2026 exemption limit is €13,000, subject to the applicable rules. These figures are included here as a current reference, not as a substitute for checking the employee’s RPN and the latest Revenue guidance.

USC can be affected by annual income, exemption status, reduced rates and certain payments or benefits. Do not apply a rate simply because it was used in last year’s payroll. Update your payroll tables when Revenue changes the rates or thresholds.

Step 4: Submit payroll information to Revenue in real time

Under PAYE Modernisation, you must report payroll information to Revenue on or before the day you pay the employee. The submission includes the pay date, amount of pay and statutory deductions such as Income Tax, USC, PRSI and, where applicable, Local Property Tax.

This is one of the most important Revenue payroll deadlines. The submission is not something to leave until the end of the month. If you pay employees on the last working day of the month, report the payroll on or before that pay date. If you make an unscheduled bonus payment, treat it as a payroll event and report it correctly.

You can use Revenue-compliant payroll software that connects to ROS, upload a suitable payroll file or enter the information through the ROS online form. Even if a payroll company or agency submits the data, the employer remains responsible for ensuring the information is accurate and compliant.

Step 5: Pay employees and issue payslips

After reviewing the payroll, pay each employee the correct net amount on the agreed pay date. Reconcile the payroll report to the bank payment file or payment instruction before releasing funds. A second-person review is useful, particularly for new starters, leavers, bonuses and changes to bank details.

Irish employers must provide every employee with a written statement of wages with every payment. Where wages are paid by credit transfer, the statement should be provided as soon as possible after the transfer. In other cases, it should accompany the wage payment.

The payslip must show gross wages and itemise the nature and amount of each deduction. In practice, a clear payslip will normally show gross pay, PAYE, employee PRSI, USC, other authorised deductions and net pay. It should also make the pay period and payment date clear.

Revenue payroll deadlines and monthly payments

Revenue generates a monthly statement based on the payroll submissions made during the month. The statement is generally available by the 5th of the following month. Employers can accept it by the 14th; if it is not accepted, Revenue can treat it as the monthly statutory return on that date.

For monthly remitters, the PAYE, USC and PRSI liability is normally due within 14 days after the end of the month. Revenue’s calendar also provides a ROS extension to the 23rd for employers who file and pay electronically, subject to the applicable rules. Treat the 14th as the core deadline in your internal calendar and use the Revenue calendar to confirm the exact date for the period.

Some employers may apply to make payments quarterly if they meet Revenue’s conditions, including the relevant annual liability threshold and compliance history. Quarterly payment does not remove the requirement to submit payroll details every time employees are paid. It only changes when the accumulated liability is paid.

Set calendar reminders for the pay date, the monthly statement, the return acceptance date and the payment date. Keep proof of submissions and payment confirmations with your payroll records.

Common DIY payroll mistakes in Ireland

The most frequent problems are avoidable administrative errors rather than complicated tax issues. Watch for:

•Using an old RPN after an employee’s credits or circumstances change.

•Reporting payroll after the pay date instead of on or before it.

•Selecting the wrong PRSI class or number of contribution weeks.

•Treating employer PRSI as an employee deduction.

•Forgetting to include overtime, bonuses, benefits or taxable expenses.

•Applying last year’s PAYE or USC rates without checking current Revenue guidance.

•Paying the correct net pay but failing to issue a compliant payslip.

•Mixing up the payroll pay date and the date money is transferred from the bank.

•Failing to process a new starter or leaver correctly.

•Not correcting a Revenue submission promptly when an error is found.

•Keeping payroll in a spreadsheet without an audit trail, backup or access controls.

If you identify an error, document what happened, correct the payroll and follow Revenue’s correction process. Do not silently overwrite records and hope the difference disappears in the next pay run.

Is DIY payroll right for your business?

Do It Yourself Payroll may suit a small employer with straightforward monthly salaries, few changes and enough time to keep up with Revenue updates. It can give the business direct visibility and may be practical when the owner is comfortable using payroll software and ROS.

Professional payroll services may be worth considering when the business has variable hours, multiple pay frequencies, directors, benefits-in-kind, share schemes, pension deductions, frequent starters and leavers, or limited administrative cover. Payroll companies in Ireland can also help with setup, software, Revenue submissions, year-end information, payslips and a controlled handover when the business grows.

Outsourcing does not transfer every legal responsibility away from the employer. You still need to provide accurate information, approve payroll and monitor the service. However, working with a reputable provider can reduce the risk of missed Revenue payroll deadlines and give you a review process for complex calculations.

FAQs

Do I need payroll software to run payroll in Ireland?

Not necessarily. Revenue allows employers to submit payroll information through ROS options where applicable. However, software can reduce manual calculations, retrieve RPNs, create payslips, maintain year-to-date records and produce reports. The employer remains responsible for the accuracy of the information.

When must I report PAYE payroll to Revenue?

You must report payroll details on or before the day you make a payment to the employee. This includes pay and relevant deductions such as PAYE Income Tax, USC and PRSI. The monthly return and payment deadline is separate from the real-time payroll submission deadline.

What is the difference between PAYE, PRSI and USC?

PAYE is Income Tax deducted from an employee’s pay. PRSI funds social insurance and can include both employee and employer contributions. USC is a separate charge on relevant income. All three must be calculated and recorded correctly, but they are not interchangeable.

When should I use payroll services in Ireland?

Consider professional payroll services when payroll is becoming difficult to review, the business has complex or changing pay arrangements, or there is no reliable backup for the person processing it. The decision should reflect compliance risk, staff time, software capability and the cost of correcting errors—not just the number of employees.

Conclusion

Running payroll yourself in Ireland is possible, but it requires a repeatable process. Start with accurate employee information and the latest RPN, calculate PAYE, PRSI and USC carefully, issue clear payslips, submit payroll to Revenue on or before each pay date and meet the monthly or quarterly payment deadline. Keep records and correct errors promptly.

For a small, stable workforce, DIY payroll in Ireland may be a sensible option. As payroll becomes more complex, comparing payroll services, payroll companies in Ireland and other payroll services in Ireland can help you decide whether specialist support offers better control and peace of mind. Accurate and timely payroll protects employees, supports cash-flow planning and helps the business meet its employer obligations.