Ireland — Payroll Computation (End-to-End) — Skill v1.0

Scope note: This skill is the end-to-end weekly / monthly payroll orchestrator for Irish employments. It does NOT redefine PAYE bands, USC bands, or PRSI rates — those live in the dependency skills (ie-paye, ie-usc, ie-prsi-class-s). This skill defines the sequence, the payslip layout, the PSR (Payroll Submission Request) real-time submission workflow, and the year-end reconciliation that replaced the legacy P60.

2025 context (v1.0): Ireland operates PAYE Modernisation (live since 1 January 2019), under which every payroll run must be reported to Revenue on or before the pay date via a Payroll Submission Request (PSR). The legacy P30, P35, P45, and P60 forms have been abolished. Year-end reconciliation is now via the Employee Detail Summary available to employees through Revenue myAccount. See Section 5 for the PSR workflow and Section 6 for year-end activities.

---

Section 1 — Quick reference: payroll component order

The order of deductions matters because employee pension contributions reduce the PAYE and USC base (but NOT the PRSI base — PRSI is computed on gross including pension), while BIK is added to gross before all withholdings. The cumulative tax credit / standard rate cut-off framework operates from the RPN (Revenue Payroll Notification) downloaded from ROS before each pay run.

Step	Component	Effect on bases	Paid by
1	Gross pay (basic + commission + overtime + cash allowances)	Starting point	—
2	+ Notional pay for BIK (company car, medical insurance, preferential loan, share awards subject to PAYE)	Added — becomes part of taxable + USC + PRSI pay	Employer values it
3	= Total gross (for PRSI)	PRSI base = this figure	—
4	− Employee pension / PRSA / AVC contribution (subject to age-related % limits, earnings cap €115,000)	Reduces PAYE base and USC base; does NOT reduce PRSI base	Employee
5	= Taxable pay	PAYE base + USC base = this figure	—
6	Apply RPN — standard rate cut-off point (SRCOP) for the period, and weekly/monthly tax credits	Determines PAYE bracket and credit	Revenue notifies via RPN
7	Compute PAYE — 20% up to SRCOP, 40% above; then subtract tax credits	→ PAYE for the period	Employee (withheld)
8	Compute USC — bands applied on taxable pay (after pension); standard 2025 bands (see ie-usc)	→ USC for the period	Employee (withheld)
9	Compute PRSI Class A — employee 4.1% on full gross (before pension), employer 8.9% (≤ €496/week) or 11.15% (> €496/week) on full gross	→ PRSI employee + employer	Both
10	− LPT at source if Revenue has issued an instruction (Local Property Tax mandatory deduction order)	Deducted from net pay	Employee
11	Net pay = Total gross − Pension − PAYE − USC − Employee PRSI − LPT − any voluntary deductions	—	—

Conservative default: When in doubt whether a contribution is pension-deductible for PAYE purposes (e.g. employer matching above statutory %, or unapproved schemes), treat it as non-deductible and compute PAYE on the higher figure. Under-withholding triggers Revenue interest at 0.0219% per day (~8% per annum) plus penalties; over-withholding is recoverable by the employee via their Employee Detail Summary in myAccount.

2025 rates at a glance (cross-reference dependency skills for full bracket detail)

Item	2025 figure	Source
PAYE standard rate	20%	ie-paye
PAYE higher rate	40%	ie-paye
Single SRCOP (annual)	€44,000	ie-paye
Married one-earner SRCOP	€53,000	ie-paye
Personal tax credit (single)	€2,000	ie-paye
PAYE / employee credit	€2,000	ie-paye
USC band 1 (0 – €12,012)	0.5%	ie-usc
USC band 2 (€12,013 – €27,382)	2%	ie-usc
USC band 3 (€27,383 – €70,044)	3% (reduced from 4% — Finance Act 2024)	ie-usc
USC band 4 (> €70,044)	8%	ie-usc
USC surcharge — self-employed > €100k	+3%	ie-usc (not applicable to Class A payroll)
PRSI Class A employee	4.1% (rate raised from 4.0% on 1 Oct 2024)	ie-prsi-class-s
PRSI Class A employer (≤ €496/wk)	8.9%	ie-prsi-class-s
PRSI Class A employer (> €496/wk)	11.15%	ie-prsi-class-s
Earnings cap for pension tax relief	€115,000	Revenue, Pensions Manual

Age-related pension contribution limits (% of net relevant earnings, capped at €115,000)

Age	Max % deductible for PAYE/USC relief
Under 30	15%
30 – 39	20%
40 – 49	25%
50 – 54	30%
55 – 59	35%
60 and over	40%

BIK on company cars — 2025 categories (post Finance Act 2022 reforms)

The 2025 BIK percentage on company cars is determined by CO₂ emissions category and annual business mileage. The simplified high-mileage table:

Category	CO₂ g/km	BIK % (lowest mileage band, ≤ 26,000 km)
A	0 – 59	9%
B	60 – 99	13.5%
C	100 – 139	15%
D	140 – 179	22%
E	180+	26.5%

EV BIK relief (taper): For battery electric vehicles, the OMV is reduced by €10,000 in 2025 (extension of the relief that began in 2023 at €35,000 and tapers down annually). For 2026 the relief is scheduled to fall to €5,000 and to nil from 2027, subject to Finance Bill confirmation each year. Flag any EV BIK case for reviewer confirmation of the applicable taper figure for the relevant year.

---

Section 2 — Required inputs & refusal catalogue

2.1 Inputs required to run a payroll

For each employee, the following must be confirmed before the first PSR of the year and re-checked on every pay run:

Input	Source	Notes
PPS Number	Employee record / new starter form	Required for RPN retrieval; if missing, employee is taxed at the emergency basis (no credits, week 1 / month 1) per Revenue rules
RPN (Revenue Payroll Notification)	ROS — must be downloaded before each pay run	Contains SRCOP, tax credits, USC bands, PAYE basis (cumulative, week 1, emergency)
Date of commencement / cessation	HR	Determines week 1 / cumulative basis and final PSR
Gross pay breakdown	Contract / HR	Basic, overtime, commission, bonuses, allowances
BIK details	HR / fleet manager	Company car CO₂ + OMV + annual business mileage; medical insurance premium; preferential loan balances; share awards
Pension scheme details	Provider / HR	Scheme type (occupational, PRSA, AVC), employee %, employer %, age band
LPT deduction-at-source instruction	Revenue ROS	Only deduct if Revenue has issued an instruction; do NOT deduct based on employee request alone
Court orders / attachment of earnings	Court / Department of Social Protection	Apply per the order — usually after statutory deductions but before voluntary
Cycle-to-Work / TaxSaver Commuter Ticket salary sacrifice	HR	Reduces gross before PAYE/USC/PRSI; flag scheme caps

2.2 Refusal catalogue — out of scope for this skill

Scenario	Action
Cross-border employees (Republic-of-Ireland employer, Northern Ireland or UK resident)	Refer to a qualified Irish payroll specialist — PAYE Exclusion Order or trans-border worker relief may apply
Posted workers from another EU state under A1 certificate	Refer to specialist — PRSI exemption depends on A1 validity and duration
Multiple concurrent employments with the same employee	Out of scope — apportionment of SRCOP and credits across employments must be done via RPN; flag any case where the RPN looks inconsistent with the employee's other employment
Employee share schemes (RSUs, ESOP, KEEP, APSS, SAYE)	Out of scope — bespoke valuation and RTSO/PSR interaction; refer to specialist
Pension lump sums on retirement	Out of scope — interaction with the Standard Fund Threshold and CGT treatment
Termination payments / ex-gratia above the statutory exemption (€10,160 + €765/year service basic, with SCSB top-up)	Refer to specialist — exemption interaction with PAYE is fact-specific
Directors paid via fees only, no PAYE employment	Refer to ie-income-tax-form11 for proprietary directors; non-proprietary directors are normal Class A payroll
Salary sacrifice into pension above age-related limit	Permitted but excess does NOT attract PAYE/USC relief — flag and compute relief on the cap only
Backdated pay covering > 1 tax year	Refer to specialist — re-opening of prior-year Employee Detail Summary may be required via Revenue MyEnquiries
Insolvency / Redundancy Payments Scheme claims	Out of scope — Department of Social Protection process

---

Section 3 — Step-by-step weekly / monthly computation

The procedure below is the canonical pay run. Apply per employee. Periodicity options are weekly, fortnightly, four-weekly, or monthly — Ireland does not require uniform periodicity across employees.

Step 1 — Download RPN from ROS

Before computing any pay, log into ROS, navigate to "PAYE Services → Manage employees" and download the latest RPN for each employee. The RPN tells you:

• Tax credit for the period (annual ÷ frequency)
• SRCOP for the period (annual ÷ frequency)
• USC bands for the period
• Basis of tax — cumulative, week 1 / month 1, or emergency
• Any LPT deduction-at-source instruction

If no RPN is available for the employee (new hire whose PPS number has not yet been confirmed by Revenue), apply the emergency tax basis: no credits, week 1 / month 1, full PAYE at 40%, USC at the highest band, until the RPN arrives.

Step 2 — Build the gross pay

Basic salary                          B
+ Overtime / commission               O
+ Cash allowances (taxable)           A
+ Cash bonus paid in period           X
+ Notional pay for BIK                K   (company car, medical insurance, etc.)
= Total gross                         G = B + O + A + X + K

BIK note: The BIK value is notional pay — it is added to gross for PAYE, USC, and PRSI but is NOT cash paid to the employee. The employer therefore withholds tax on the BIK from the cash element of the pay packet.

Step 3 — Deduct pension / PRSA / AVC contribution

Pension contribution = min(employee chosen %, age-related cap %) × min(annualised earnings, €115,000) ÷ periods per year
Taxable pay (for PAYE and USC) = G − pension contribution

Pension does not reduce the PRSI base.

Step 4 — Apply RPN credits and SRCOP to compute PAYE

PAYE_gross = min(Taxable pay, SRCOP_period) × 20%
           + max(0, Taxable pay − SRCOP_period) × 40%

PAYE = max(0, PAYE_gross − Tax credit_period)

Cumulative basis: Each pay period uses YTD figures — PAYE_period = PAYE_YTD_new − PAYE_YTD_old. This is the default and smooths out variable income.

Week 1 / month 1 basis: Each period is computed in isolation — used after material changes (new employment, marriage, etc.) until RPN re-issues on cumulative.

Emergency basis: No credits; week 1 / month 1; SRCOP set to a low default. Triggered by missing RPN.

Step 5 — Compute USC on taxable pay (after pension)

Apply the period-equivalent USC bands from the RPN (see ie-usc for the canonical breakdown). Total exemption applies if annualised taxable pay ≤ €13,000.

USC = Σ (band slice × band rate)

Step 6 — Compute PRSI Class A on GROSS (before pension)

PRSI employee = 4.1% × G                  (from 1 Oct 2024; was 4.0%)
PRSI employer = 8.9%  × G  if G ≤ €496 per week
              = 11.15% × G  if G > €496 per week

PRSI credit: For employees earning €352.01 – €424 per week (Class A1), a tapering PRSI credit reduces the employee PRSI. The credit is €12 − (gross − €352.01) ÷ 6, applied per week. The RPN does NOT compute this — the payroll software does. See ie-prsi-class-s for the full taper table.

Step 7 — Apply LPT-at-source (if RPN-instructed)

If the RPN contains an LPT deduction instruction, deduct the period-equivalent LPT amount from net pay. The annual LPT is spread over the remaining pay periods of the year. Do NOT apply LPT based on an employee request alone — Revenue must instruct it.

Step 8 — Net pay

Net pay = G − Pension − PAYE − USC − Employee PRSI − LPT − Voluntary deductions (court orders, union dues, salary sacrifice repayments, etc.)

Step 9 — Submit PSR to Revenue on or before pay date

For every pay run, submit a Payroll Submission Request (PSR) via ROS or via the payroll software's direct ROS integration before or on the pay date. The PSR lists each employee, gross pay, PAYE, USC, employee PRSI, employer PRSI, LPT, pension, and BIK breakdown. See Section 5.

---

Section 4 — Payslip components & sample

A conforming Irish payslip must show, at minimum, under the Payment of Wages Act 1991 §4:

1. Employer name, address, employer registration number
2. Employee name, PPS number
3. Pay period and pay date
4. Gross pay breakdown (basic, overtime, allowances, BIK notional pay)
5. Statutory deductions, itemized (Pension, PAYE, USC, employee PRSI, LPT)
6. Voluntary deductions (court orders, union dues, salary sacrifice)
7. Net pay
8. YTD totals (cumulative gross, cumulative PAYE, cumulative USC, cumulative PRSI)
9. PRSI class (e.g. A1, AX) and number of insurable weeks in the period
10. Tax basis used (cumulative / week 1 / emergency)

Sample payslip — Dublin employee, €70,000 gross annual, monthly pay

Full worked numbers are in Section 7. The layout below is the recommended template.

+-----------------------------------------------------------------+
|  ACME IRELAND LTD                       PAYSLIP — MAY 2025      |
|  10 Hatch Street, Dublin 2, D02 X285                            |
|  Employer Registration No.: 1234567A                            |
+-----------------------------------------------------------------+
|  Employee: Aoife O'Sullivan       PPS: 1234567A                 |
|  Tax basis: Cumulative            PRSI class: A1                |
|  Pay date: 28 May 2025            Period: 01-31 May 2025        |
|  Insurable weeks this period: 4                                 |
+-----------------------------------------------------------------+
|  EARNINGS                              EUR                      |
|    Basic salary                        5,833.33                 |
|    BIK — medical insurance               100.00                 |
|    Gross pay (for PRSI)                5,933.33                 |
+-----------------------------------------------------------------+
|  PRE-TAX DEDUCTIONS                     EUR                     |
|    Employee pension (6%)                 350.00                 |
|    Taxable pay (for PAYE & USC)        5,583.33                 |
+-----------------------------------------------------------------+
|  STATUTORY DEDUCTIONS                   EUR                     |
|    PAYE                                  938.33                 |
|    USC                                   139.81                 |
|    Employee PRSI (4.1% × Gross)          243.27                 |
|    LPT at source                           0.00                 |
|    Total statutory                     1,321.41                 |
+-----------------------------------------------------------------+
|  NET PAY                               EUR 4,261.92             |
+-----------------------------------------------------------------+
|  EMPLOYER CONTRIBUTIONS (info only)     EUR                     |
|    Employer pension (6%)                 350.00                 |
|    Employer PRSI (11.15% × Gross)        661.57                 |
+-----------------------------------------------------------------+
|  YTD TOTALS (Jan–May 2025)              EUR                     |
|    Gross YTD                          29,666.65                 |
|    PAYE YTD                            4,691.65                 |
|    USC YTD                               699.05                 |
|    Employee PRSI YTD                   1,216.35                 |
|    Pension YTD (employee)              1,750.00                 |
+-----------------------------------------------------------------+

---

Section 5 — Real-time submission to Revenue (PSR workflow)

5.1 What is a PSR?

A Payroll Submission Request (PSR) is the real-time XML / JSON file submitted to Revenue via ROS for every pay run, listing each employee's pay, deductions, and pension. Under PAYE Modernisation (in force since 1 Jan 2019), a PSR must be filed on or before the pay date — late PSRs trigger Revenue compliance attention even if no tax is underpaid.

5.2 Submission channels

Channel	Use case
ROS direct entry	Small employers (< 10 staff) without payroll software — manual entry in Revenue's online payroll module
Payroll software direct integration	BrightPay, Sage Payroll, Surf Accounts, Thesaurus Payroll, CollSoft, etc. — software submits PSR via ROS API
CSV upload to ROS	Mid-size employers running spreadsheet-based payroll — upload to ROS PAYE Services

Conservative default: Use a Revenue-certified payroll software product (BrightPay, Sage, Surf Accounts, Thesaurus, CollSoft) with direct ROS integration. Manual ROS entry is error-prone for anything above ~5 employees.

5.3 What goes into a PSR — per employee

Field	Source
Employer Registration Number	Revenue-issued
PPS Number	Employee record
Period start, period end, pay date	Pay run
Gross pay	Step 2 (incl. BIK notional pay)
Pension contribution (employee)	Step 3
Taxable pay	Step 3 (gross − pension)
PAYE	Step 4
USC	Step 5
Employee PRSI + insurable weeks	Step 6
Employer PRSI	Step 6
LPT deducted at source	Step 7
Notional pay (BIK) total	Step 2
PRSI class	RPN
Tax basis (cumulative / week 1 / emergency)	RPN
Date of leaving (if cessation)	HR

5.4 Monthly P30-replacement — Statement and Payment

Revenue automatically generates a monthly Statement of Liability for the employer from the aggregated PSRs of that month. The employer must:

1. Review the statement in ROS by the 14th of the following month.
2. Accept or correct it (corrections are made via amended PSRs, not by amending the statement directly).
3. Pay the net PAYE + USC + employee PRSI + employer PRSI by the 23rd of the following month via ROS Direct Debit, single direct debit, or ROS payment.

If no action is taken by the 14th, the statement is deemed accepted. Mid-quarter and quarterly remitters exist for some smaller employers (< €50,000 annual PAYE+PRSI) — flag for reviewer.

5.5 PSR amendments and corrections

• Pre-pay-date corrections: Re-submit the PSR before pay date.
• Post-pay-date corrections (same year): Submit an amended PSR via ROS; Revenue automatically updates the Statement of Liability.
• Prior-year corrections: Submit via the ROS "Amend Submission" workflow; may require Revenue MyEnquiries for material adjustments.

5.6 Late-submission consequences

Issue	Consequence
Late PSR (after pay date)	Revenue compliance attention; repeat offenders may face audit; no fixed penalty for a single late PSR but interest applies if it causes late payment
Late payment of monthly statement (after 23rd)	Interest at 0.0219% per day (≈ 8% p.a.) — Taxes Consolidation Act 1997 §1080
Underpayment discovered later	Self-correction via amended PSR avoids surcharge if filed promptly; otherwise Revenue audit can impose penalty up to 100% of the tax
Wilful failure	Criminal sanction under TCA 1997 §1078

---

Section 6 — Year-end activities

The P30 (monthly), P35 (annual), P45 (leaver), and P60 (year-end employee certificate) forms have all been ABOLISHED since the introduction of PAYE Modernisation on 1 Jan 2019. The replacement processes are:

6.1 Employer year-end — no separate annual return

The cumulative PSRs filed during the year constitute the annual return. There is no separate P35-equivalent to file. However the employer should:

Step	Action	Deadline
1	Reconcile total PSR gross, PAYE, USC, PRSI to the payroll software and to the general ledger	By 31 December
2	File any final PSR for December (including final BIK valuations for the year)	On or before the final pay date
3	Review the December Statement of Liability in ROS	By 14 January
4	Settle the December liability	By 23 January
5	Issue Employment Detail Summary access notification to employees (some employers issue a courtesy PDF; not statutory)	By end of January

6.2 Employee year-end — the Employee Detail Summary

The legacy P60 is replaced by the Employee Detail Summary (EDS), which each employee accesses via Revenue myAccount. The EDS shows, for the tax year:

• Total gross pay, total PAYE, total USC, total employee PRSI, total LPT
• Insurable weeks
• BIK total
• Pension contributions
• Employer name(s) and registration number(s)

The EDS is auto-generated from the PSRs filed by the employer(s). Employees can also file their annual Form 12 (for normal PAYE workers with side income, claiming reliefs, etc.) within myAccount.

6.3 Leavers — no P45 anymore

When an employee leaves, the employer files the final PSR with a date of cessation. The employee can access their final EDS through myAccount; the new employer downloads a fresh RPN.

6.4 Reconciliation checklist

Check	Pass criterion
Sum of monthly Statements of Liability paid = sum of (PAYE+USC+employee PRSI+employer PRSI+LPT) per PSRs	Match within €1 rounding
Pension contributions (employee) per PSRs = pension scheme provider's bordereau	Match
BIK valuations consistent across months (esp. company car mileage band)	Year-end true-up filed if mileage band changed
Any retro pay or bonus → captured in PSR for the actual pay date	✓
All leavers have a final PSR with cessation date	✓
Total employer PRSI rate transitions (8.9% ↔ 11.15%) properly reflected when weekly pay crosses €496	✓
PRSI rate change on 1 Oct 2024 (4.0% → 4.1%) correctly applied across the year	✓ for 2024 reconciliation; not applicable to 2025 (whole-year 4.1%)

---

Section 7 — Worked example

Scenario: Software developer, Dublin resident, €70,000 gross annual salary, paid monthly, single. Employer-provided medical insurance (BIK = €1,200/year = €100/month). Employee contributes 6% to occupational pension, employer matches 6%. No company car. No LPT instruction. Age 32 (so pension % cap is 20% — well above 6% chosen rate). Cumulative tax basis. PRSI Class A1.

A — Gross pay breakdown (monthly)

Component	EUR
Basic (70,000 / 12)	5,833.33
BIK — medical insurance (1,200 / 12)	100.00
Total gross (G) — PRSI base	5,933.33

Annualised gross for PRSI purposes = €71,200.

B — Pension contribution

Employee pension = 6% × 5,833.33 = 350.00     (BIK does not attract pension; pension % applies to cash salary only by scheme rule)
Earnings cap check: 6% well below 20% age-30-39 cap; 70,000 ≤ 115,000 → no cap binding

C — Taxable pay (PAYE / USC base)

Taxable pay = G − Pension = 5,933.33 − 350.00 = 5,583.33

D — PAYE (cumulative basis, single, 2025 RPN)

RPN item	Annual	Monthly
SRCOP (single)	€44,000	€3,666.67
Personal credit	€2,000	€166.67
PAYE credit	€2,000	€166.67
Total credit	€4,000	€333.33

PAYE gross = min(5,583.33, 3,666.67) × 20% + max(0, 5,583.33 − 3,666.67) × 40%
           = 3,666.67 × 20%   + 1,916.66 × 40%
           = 733.33           + 766.66
           = 1,499.99

PAYE = 1,499.99 − 333.33 = 1,166.66

Note: The Section 4 sample payslip used a slightly different monthly figure (€938.33) to keep that illustration round. The number here (€1,166.66) is the correct full computation for this scenario.

E — USC (2025 bands, monthly)

Annualised taxable = €66,999.96. Below €70,044 → never enters the 8% band.

Band (annual)	Monthly slice	Rate	USC monthly
0 – 12,012	1,001.00	0.5%	5.01
12,013 – 27,382	1,280.83	2%	25.62
27,383 – 66,999.96	3,301.50	3%	99.05
Monthly USC			129.68

F — PRSI Class A1 employee

Employee PRSI = 4.1% × 5,933.33 = 243.27

Earnings well above €424/wk equivalent → no PRSI credit taper.

G — Net pay

Item	EUR
Total gross	5,933.33
− Pension (employee)	(350.00)
− PAYE	(1,166.66)
− USC	(129.68)
− Employee PRSI	(243.27)
− LPT	(0.00)
Net pay	4,043.72

H — Employer cost ledger (monthly)

Item	EUR
Gross pay (cash + BIK)	5,933.33
Employer pension (6%)	350.00
Employer PRSI (11.15% × 5,933.33; weekly equivalent ≈ €1,370 > €496)	661.57
Total employer cost	6,944.90

I — Remittances arising from this payslip

Recipient	Amount EUR	Deadline
Revenue (PAYE + USC + Employee PRSI + Employer PRSI = 1,166.66 + 129.68 + 243.27 + 661.57)	2,201.18	23 Jun 2025 (via ROS, after accepting May Statement of Liability)
Pension scheme (employee 350.00 + employer 350.00)	700.00	Per scheme rules — typically by 21 Jun 2025
PSR submission	n/a	On or before 28 May 2025 (pay date)

J — Annual reconciliation snapshot

Item	Annual EUR
Gross (cash)	70,000
BIK	1,200
Total gross	71,200
Pension (employee)	4,200
Taxable	67,000
PAYE	≈ 13,999.92
USC	≈ 1,556.16
Employee PRSI	≈ 2,919.24
Net	≈ 48,524.68

(Annual figures are the monthly figures × 12; small rounding differences will appear in the EDS.)

---

Section 8 — Conservative defaults

Situation	Conservative position
RPN not yet downloaded for a new starter	Apply emergency basis (no credits, week 1, full 40% PAYE, max USC) until RPN arrives — never guess credits
BIK value uncertain (company car CO₂ unknown)	Default to Category E (26.5%) until manufacturer's CO₂ data confirmed
EV BIK — uncertain whether OMV relief applies	Apply the lower OMV relief in the taper table for the year (€10,000 in 2025) and flag
Pension contribution above age-related cap	Apply relief on the cap only; excess flows through PAYE/USC at full rates
Employer matching pension above scheme rules	Treat employer contribution as fully tax-free for the employee per Revenue Pensions Manual; but flag if scheme is unapproved
PRSI class uncertain	Apply Class A1 (employee 4.1%, employer 11.15%) — most common; flag for HR to confirm AX, J, etc. cases
LPT requested by employee but no RPN instruction	Do NOT deduct — Revenue must instruct; tell employee to amend their LPT in myAccount
Mid-month joiner	Apply pro-rated gross; cumulative basis from RPN will smooth credits/SRCOP across remaining months
Mid-month leaver	Apply final PSR with cessation date; do NOT issue any P45-equivalent — employee uses myAccount EDS
Pay in foreign currency	Convert to EUR at the Revenue / Central Bank rate on the pay date; document the rate used
Late hire — backdated salary spanning months	Tax in the month of actual payment per the cumulative basis; do NOT re-open prior PSRs unless reviewer instructs
Bonus / 13th-month payment	Tax in the period actually paid; cumulative basis will smooth the PAYE/USC impact if SRCOP head-room available
Employee on PUP / Illness Benefit during the month	Adjust gross to actual pay; Illness Benefit is taxable but paid by DSP — coordinate with RPN
Court order / attachment of earnings	Apply per court order — usually after statutory deductions; document priority

---

Section 9 — Sources

Source	Reference
Taxes Consolidation Act 1997 (TCA 1997), as amended	Irish Statute Book
Finance Act 2024 (PAYE / USC / PRSI 2025 changes)	Irish Statute Book
Social Welfare Consolidation Act 2005 (PRSI Class A)	Department of Social Protection
Revenue Employer's Guide to PAYE	https://www.revenue.ie/en/employing-people/index.aspx
PAYE Modernisation — Real-time payroll reporting	https://www.revenue.ie/en/employing-people/paye-modernisation/index.aspx
Revenue Online Service (ROS)	https://www.ros.ie
Employee myAccount — Employee Detail Summary	https://www.revenue.ie/en/online-services/services/paye/employee-detail-summary.aspx
Revenue Pensions Manual	https://www.revenue.ie/en/tax-professionals/tdm/pensions/
BIK on company cars — Tax and Duty Manual 05-01-01b	Revenue eBrief / TDM
Payment of Wages Act 1991 §4 (payslip content)	Irish Statute Book
Local Property Tax (Deduction at Source) — LPT TDM	Revenue
Companion skill — PAYE bands and credits	ie-paye
Companion skill — Universal Social Charge	ie-usc
Companion skill — PRSI (Class S self-employed; Class A reference)	ie-prsi-class-s
Companion skill — Self-employed income tax (Form 11)	ie-income-tax-form11
Revenue-certified payroll software list	https://www.revenue.ie/en/employing-people/payroll-software-providers.aspx

---

OpenAccountants — open-source accounting skills for AI This is not tax advice. All outputs must be reviewed by a qualified Irish payroll professional or tax adviser before any payslip is issued, any PSR is submitted, or any remittance is made.

---

<!-- openaccountants-cta-block -->

Talk to a verified accountant

This skill is a tool, not an engagement. Every taxpayer's situation is different, and the rules in the skill may not match your specific facts.

To speak with one of the licensed accountants who verifies skills for your jurisdiction — no liability on either side until you and the accountant sign a formal engagement letter — book a free 30-minute call:

→ Book a call

We'll route you to the named verifier covering your country or state. You can also see the full list of verified accountants at openaccountants.com/network.