Information on payroll submission

What employee pay details do you include?

Gross pay

Input employee’s gross pay here before any deductions are made. Gross pay includes:

• wages
• salaries
• notional pay
• bonuses
• overtime
• holiday pay
• commission paid in that period.

Pay for Income Tax

Input gross pay here, excluding any regular payments made by the employee into a fund towards a pension (superannuation contributions). These contributions are allowable for Income Tax purposes and are deducted from pay by the employer. The contributions must be made to a Revenue approved fund or scheme.

Pay As You Earn (PAYE) must be operated on the total taxable pay.

Pay for Universal Social Charge (USC) purposes

Input gross pay here before any deductions are made. USC must be operated on gross pay before any pension contributions are deducted.

All payments from the Department of Social Protection (DSP) are excluded from gross pay for USC purposes. This includes Illness Benefit.

Pay for employee Pay Related Social Insurance (PRSI) purposes

Input gross pay here, including notional pay or Benefits in Kind (BIK), if applicable. Pay Related Social Insurance (PRSI) is also fully chargeable on payments made by the employee to: 

• approved superannuation schemes
• Personal Retirement Savings Accounts (PRSA)
• Approved Revenue Funds (ARFs)
• and
• approved permanent health insurance schemes.

If Local Property Tax (LPT) is included for an employee on a Revenue Payroll Notification (RPN), you must deduct LPT from the relevant employee’s salary. The amount of LPT deducted must be included on the employee’s payroll submission.

Income Tax paid

The tax deducted from, or refunded to, the employee in that period.

PRSI class and subclass

The employee’s PRSI class and the subclass for the insurable weeks worked in that period.

Employee PRSI paid

The amount of employee PRSI deducted in that period.

Employer PRSI

The amount of employer PRSI paid in that period.

USC paid

The amount of USC deducted or refunded in that period

Permanent Health Benefits (PHBs)

Your employee may contribute to a Revenue-approved PHB plan. This provides them with pay if they are out sick or injured from work. They may claim tax relief in respect of the contributions paid. There is no relief for Universal Social Charge (USC) or Pay Related Social Insurance (PRSI).

You should deduct any PHB contributions from your employee’s gross pay when calculating their Income Tax. You should not deduct these contributions from your employee’s gross pay when you are calculating their USC and PRSI.

Next: What other details go into payroll submission?