Beginning January 1, 2019, employers must now report payroll information to Revenue at the time employees are paid.

The Pay As You Earn (PAYE) system is a method of tax deduction under which an employer calculates and deducts any income tax due each time a payment of wages, salary etc. is made to an employee.  Companies will need to ensure that the PAYE system is maintained for each time the employee is paid, rather than at year-end, which is the current system.

With this change in the rule, employers should ensure the following:

  • Track and report assignees sent to Ireland for work and short-term business visitors;
  • Each short-term business visitor and inbound assignee, where the PAYE withholdings are required, have an Irish social security number (PPSN) and is correctly registered for tax purposes; and
  • Payroll process in place to remain compliant with the new requirements.

Employers should also determine the compensation and PAYE obligations based on the current Revenue guidance.  Penalties for failing to comply can result in a 4000 Euro fee for each breach of the new rules.


This news alert was prepared using information Global Tax Network.

Please note that this is general information only and not intended as advice on a specific matter. Please feel free to contact Fakhoury Global Immigration directly with questions exclusive to your situation. This news alert may have been prepared using information from Peregrine Immigration Management, which is licensed to Fakhoury Global Immigration.