Ireland — Full Payroll (PAYE Income Tax, PRSI, USC — Revenue's PAYE Modernisation)
Irish payroll under Revenue's PAYE Modernisation system (real-time reporting from 2019) — recording income tax (PAYE), Pay Related Social Insurance (PRSI) for employer and employee, Universal Social Charge (USC), and net pay via SEPA credit transfer.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Salaries & Wages Expense — Gross Pay (Ireland — Republic) | Expense (+) | 1,000,000.00 | - |
| PRSI Employer Contribution Expense (Class A: 11.15% from Oct 2024; on Gross Earnings) | Expense (+) | 111,500.00 | - |
| Cash — Net Pay Disbursed | Asset (−) | - | 668,000.00 |
| PAYE Income Tax Withheld Payable — Revenue (Standard Rate 20% / Higher Rate 40%) | Liability (+) | - | 200,000.00 |
| Employee PRSI Withheld Payable — DEASP (Class A: 4.1% from Oct 2024) | Liability (+) | - | 41,000.00 |
| USC Withheld Payable — Revenue (Rates: 0.5% / 2% / 4% / 8% Depending on Band) | Liability (+) | - | 20,000.00 |
| Employer PRSI Payable — Revenue Commissioners (Employer + Employee PRSI Remitted Together) | Liability (+) | - | 111,500.00 |
| LPT / Pension Contribution Withheld (If Applicable — Auto-Enrolment Expected 2025) | Liability (+) | - | 10,000.00 |
💡 Accountant's Note
Irish payroll is administered by Revenue Commissioners under the PAYE system modernised in 2019 (real-time payroll reporting). PAYE INCOME TAX: Standard rate 20% on income up to the rate band (€42,000 single; €51,000 married/single earner; €84,000 married dual income in 2024). Income above the band: 40%. Tax credits reduce the tax liability: Personal tax credit €1,875; Employee (PAYE) tax credit €1,875; other credits for home carer, single parent, incapacity, etc. Revenue provides each employer with a Revenue Payroll Notification (RPN) per employee containing the tax credits and rate band to apply — must be updated before each pay run. PRSI (Pay Related Social Insurance): Class A for most employees. Employee share: 4.1% (from October 2024 — increased from 4%). Employer share: 11.15% (from October 2024 — increased from 11.05%). No upper earnings limit for PRSI (unlike CPP or NI). The employer remits both shares to Revenue. USC (Universal Social Charge): 0.5% on income up to €12,012; 2% on €12,012–€25,760; 4% on €25,760–€70,044; 8% on income above €70,044. Exempt from USC: income below €13,000; social welfare payments; certain medical card holders. USC is withheld by employer and remitted monthly. AUTO-ENROLMENT PENSION: Ireland's auto-enrolment pension scheme is expected to launch in 2025 — employees not in an occupational scheme will be automatically enrolled; contribution structure: 3% employee, 3% employer (rising to 6% each over 10 years). PAYE MODERNISATION: Since 2019, employers must submit a Payroll Submission Request (PSR) to Revenue on or before each pay date — real-time payroll reporting. Monthly P30 replaced by real-time PSR.
Practitioner & Systems Framework
💻 ERP Architecture
Irish payroll software: Sage Payroll Ireland, Thesaurus Payroll, BrightPay Ireland, Micropay, Zalaris. All must support Revenue's PMOD (PAYE Modernisation) API for real-time PSR submission. PRSI is collected by Revenue on behalf of the Department of Social Protection (DSP). The P35 annual return was abolished under PMOD — now replaced by real-time cumulative reporting.
⚠️ Audit Flags
(1) RPN currency — is the most recent Revenue Payroll Notification applied before each payroll run? Applying outdated RPNs causes incorrect PAYE and may result in employee underpayment. (2) PRSI class correctness — Class A is standard; different classes apply to certain proprietary directors (Class S), civil servants, and other categories. (3) USC exemption for low earners — is the €13,000 threshold correctly checked? (4) PSR timeliness — Revenue can impose interest and penalties for payroll reports not submitted by the pay date.
📄 Required Documentation
Revenue Payroll Notifications (RPNs) per employee, Payroll Submission Reports (PSRs), monthly P30 remittance equivalents, annual P60 employee certificates, employee PPS numbers, USC and PRSI rate calculations, and auto-enrolment enrollment documentation (when effective).
Professional Excel Template
Get the automated version of this entry. Includes built-in IFRS checks, VAT calculators, and SAP-ready upload formats.
Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.
Related Journal Entries
HR, Payroll & Staffing
Temporary Staffing Revenue — Gross Recognition (Firm is Principal, Bears Employment Risk)
HR, Payroll & Staffing
Permanent Placement — Contingency Search Fee (No Fee If No Hire)
HR, Payroll & Staffing