Payroll isn’t just about processing payslips and meeting pay dates; it’s about ensuring every calculation, submission, and payment is made in line with Irish law. Non-compliance can lead to more than just penalties; it affects employee trust, business reputation, and cost you financially.
Having worked with many Irish employers over the years, we have seen how complex the payroll landscape has become. But the good news is, staying compliant is achievable when you know where to focus.
Key Irish Payroll Regulations to Know
- PAYE Modernisation: Since 2019, employers must report payroll data to Revenue in real time. Each payment must be submitted through a payroll submission request (PSR).
- PRSI, USC, and Income Tax: These deductions are mandatory and must be calculated accurately for each pay period.
- National Minimum Wage: Updated annually. Employers must ensure they’re paying the correct rate based on age and sector.
- Statutory Leave: This includes sick pay, maternity/paternity leave, public holidays, and new entitlements under the Sick Leave Act.
- Auto-Enrolment: Due to be introduced in 2025, this will require employers to automatically enrol eligible employees into a pension scheme.
Common Mistakes That Lead to Non-Compliance
- Relying on outdated payroll software or manual processes.
- Misclassifying employees (e.g., part-time vs full-time or contractors).
- Incorrectly applying leave entitlements or missing deadlines for Revenue submissions.
- Failing to keep adequate records for inspections or audits.
- Overlooking updates to minimum wage or tax bands.
Tips for Staying Compliant
- Use Revenue-approved payroll software that updates automatically with new legislation.
- Keep up to date with changes from Revenue, DEASP, and other regulatory bodies.
- Automate your reporting and ensure payslips are issued correctly every cycle.
- Maintain secure and accurate employee records for at least six years.
- Have a backup plan. Who handles payroll if your main processor is out sick or on leave?
How ICE Pay Helps
At ICE Pay, compliance is at the heart of what we do. We manage every aspect of the payroll process in line with Irish legislation, from calculating statutory entitlements to submitting real-time reports to Revenue. Our systems are fully secure, our support is personal, and we work as an extension of your business.
Final Thought
Payroll compliance isn’t something to delay or overlook. With the right approach and the right partner, it becomes a smooth, reliable part of running your business.
If you’re unsure about your current setup or simply want peace of mind that everything is in order, we’re here to help.
Get in touch for a no-obligation payroll review or download our guide: ‘In-House vs Outsourced Payroll – What’s Best for Your Business?’
Payroll compliance isn’t optional — and it’s getting more complex.
The good news? With the right knowledge and systems in place, staying compliant doesn’t have to be stressful.
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