Irish payroll is a separate system from UK payroll, and the separation is total: the Republic of Ireland has its own tax authority, Revenue, its own deductions and its own real-time reporting regime, and nothing filed with HMRC covers any of it. A UK company paying an employee who lives and works in Ireland is running a foreign payroll, however close Dublin feels. The core rule is Revenue's: payroll information must be reported on or before the day each payment is made, covering income tax, the Universal Social Charge, Pay Related Social Insurance and, where applicable, Local Property Tax. This page sets out what that means in practice and the routes a UK employer can take.
How Revenue's real-time regime works
Ireland runs payroll reporting in real time. Revenue's guidance states that the employer must report the payroll information on, or before, the day the employee is paid, and each submission carries the pay date, the amount of pay and the deductions: Income Tax, Universal Social Charge, Pay Related Social Insurance and Local Property Tax where it applies. Submissions reach Revenue three ways: payroll software reporting directly to ROS, Revenue's online system; manual upload of software-generated files to ROS; or direct entry through the online form. There is no equivalent of a quiet annual reconciliation to fall back on; the reporting obligation attaches to every single payment as it happens.
The deductions are not UK deductions with new names
The Irish stack differs from PAYE as a UK employer knows it. Income tax runs on Revenue's credits and rate band instructions per employee, not on UK-style tax codes. The Universal Social Charge is a separate levy on income with its own bands, collected through payroll alongside income tax rather than inside it. PRSI is the social insurance contribution, with both employee and employer elements, and the employer share is a real cost on top of gross salary that must be budgeted when an Irish hire is priced. Local Property Tax can also ride through payroll where an employee has opted to pay it that way. Running these on UK payroll software or UK assumptions is the standard first mistake.
Routes for a UK company, and who stays responsible
Three routes exist. A UK company with an Irish presence can register as an employer with Revenue and run Irish payroll itself or through an Irish payroll bureau operating under its registration. Without any Irish entity, the practical route is an employer of record: its Irish entity employs the hire, runs the real-time reporting under its own registration and invoices salary plus fee, and the vendors covering Ireland are priced on this site's verified table. Whichever route is chosen short of the EOR, Revenue emphasises that employers bear responsibility for compliance regardless of which method or intermediary is used, so a bureau's mistake is still the employer's liability. This page describes the regime; it is not tax or legal advice, and Revenue's rules and your contracts control.
Questions people ask about irish payroll
Can I pay an employee in Ireland through my UK PAYE scheme?
No. Ireland is a separate tax jurisdiction with its own authority, Revenue, and its own real-time reporting; Irish employment income must run through an Irish payroll with Irish deductions, not through HMRC's system.
When must Irish payroll be reported to Revenue?
On or before the day the employee is paid, for every payment, including the pay date, the pay amount and the deductions for Income Tax, USC, PRSI and Local Property Tax where applicable.
What is the Universal Social Charge?
A separate Irish levy on income, collected through payroll alongside income tax with its own bands. It has no UK equivalent, which is one reason UK payroll assumptions do not transfer to Irish payroll.
What is the simplest compliant route with no Irish entity?
An employer of record: it employs the hire through its own Irish registration, runs Revenue's real-time reporting and PRSI, and invoices you the salary cost plus its fee. Compare vendors covering Ireland on verified pricing before choosing.