Ireland Payroll Taxes and Employer Obligations

Ireland’s payroll taxes cover income tax, social contributions, and employer on‑costs that must be applied correctly on every pay run. From 2026, this also includes running Ireland’s auto‑enrollment retirement savings scheme for eligible employees alongside PAYE, PRSI and USC as part of Ireland's payroll taxes. Employer of Record pricing in Ireland includes salary, statutory contributions, and employer taxes. To understand how these deductions are calculated and how they connect to wider employment rules, see our Ireland employment and payroll guide.

How Payroll Processing Works in Ireland

Running payroll in Ireland means calculating gross pay, applying income tax and social deductions, and reporting everything to Revenue in real time through the PAYE system. Employers must register as an employer, set up payroll software or a provider, and make sure each pay run deducts the correct income tax, Universal Social Charge (USC), and Pay Related Social Insurance (PRSI) for every employee.

Each pay cycle typically follows three steps: calculate gross earnings, apply the appropriate tax credits and bands, and then calculate and withhold USC and PRSI before paying net salary. Employers then remit the total deductions and employer PRSI to Revenue by the statutory deadline and provide employees with payslips that show all items clearly. An EOR in Ireland can manage this end-to-end, using local systems that are already aligned with Irish payroll rules.

Employer Tax Obligations: PAYE, PRSI and USC

Ireland’s payroll taxes for employers sit on top of gross salary and are mainly driven by PAYE, PRSI, USC and, from 2026, employer pension contributions under Ireland’s auto‑enrollment scheme for eligible employees. Under PAYE, employers are responsible for operating income tax correctly, ensuring that bands and credits are applied and that employee deductions are remitted on time under real‑time reporting.

PRSI is the core employer social security contribution. Employers pay PRSI on top of gross salary, at rates that vary based on earnings and PRSI class, while employees also contribute through payroll. USC is a separate charge on gross income, fully paid by the employee but calculated and withheld via payroll alongside PAYE and PRSI.

Because PRSI thresholds and rates can change, many employers rely on the official PRSI employer guide or on local payroll specialists to keep calculations up to date. In an EOR model, the provider monitors these changes centrally and updates payroll settings so that clients do not have to track every technical adjustment themselves.

Pay Frequency and Payroll Compliance in Ireland

Payroll in Ireland is most commonly processed on a monthly or weekly basis, although fortnightly and four‑weekly cycles are also used. Whatever schedule you choose, each pay run must meet PAYE real‑time reporting requirements, meaning pay and deduction information is submitted to Revenue on or before the payment date.

Compliance also means issuing itemized payslips, maintaining accurate payroll records, and reconciling payroll data with the amounts remitted to the tax authorities. Employers need to handle starters and leavers correctly, apply statutory leave and sick pay rules, and ensure that minimum wage and working‑time regulations are respected. A partner offering Employer of Record in Ireland services builds these payroll compliance checks into each cycle. Payroll obligations in Ireland are governed by national employment regulations. Learn more about contracts, notice periods, and wider compliance requirements in our Ireland employment law guide.

How Payroll Works Under an EOR Model

Under an EOR model, the Irish entity operated by the provider becomes the legal employer, and you direct the employee’s day‑to‑day work. The EOR prepares compliant local contracts, sets the employee up on Irish payroll, calculates gross‑to‑net pay, and runs PAYE, PRSI, and USC calculations each pay period.

In practice, you approve salary and variable pay, share any changes before cut‑off, and the EOR completes the pay run and issues payslips. The EOR invoices you for gross salaries, employer PRSI, and other statutory costs, plus the agreed service fee, and then remits taxes and contributions to Revenue. This structure allows you to meet Ireland’s payroll taxes and employer obligations without registering as an employer or building a local payroll team.

Payroll, Employer Taxes and Employer of Record in Ireland

When you work with an Employer of Record in Ireland solution, you are effectively outsourcing the calculation and administration of PAYE, PRSI, and USC to local experts. The EOR ensures the correct PRSI classes, USC bands, and tax credits are applied, that submissions are made on time, and that employer obligations are met even as Ireland’s payroll taxes evolve.

For many organizations, this is particularly attractive when hiring the first few employees in Ireland or where internal teams lack the capacity to manage a separate Irish payroll. Instead of building local infrastructure from scratch, you can rely on established processes and focus on workforce planning and performance.