Payments to employees

Benefit in kind

Notional pay

Notional pay, for example a company car or medical insurance, should be reported on either: 

  • the day the notional payment is made
  • the earlier of:
    • the next pay day
    • or
    • 31 December in the year.  

Where the actual value is not available, submit a best estimate of any benefit in the relevant payroll submission. When the actual value of the benefit becomes available, you should include any adjustment in the next payroll submission. 

You should review notional pay regularly, at least quarterly, to ensure payments reported to Revenue are as accurate as possible. 

Share based remuneration 

Notional pay in the form of share based remuneration should be reported on either:

  • the day the notional payment is made
  • the earlier of:
    • the next pay day
    • or
    • 31 December in the year.  

You should, in the absence of a precise valuation, include a best estimate of the value of the benefit involved. That amount should be included in the relevant payroll submission to Revenue. 

When the precise value of the benefit becomes available, any adjustment should be included in the next payroll submission. 

Shares might vest on 31 December. An employer should consider whether the shares have vested by close of business in Ireland on 31 December. 

Expenses

You must make a payroll submission on or before any payment is made to an employee. This includes reimbursement of taxable expenses to an employee. Where taxable expenses are reimbursed, you must file a separate payroll submission on or before the payment of the reimbursement. 

Expenses might be paid through a company credit card. Revenue will accept that, for the purposes of PAYE, the payment can be regarded as notional pay. The payment should be reported on either:

  • the day the notional payment is made
  • the earlier of:
    • the next pay day
    • or
    • 31 December in the year.

Next: Shadow payroll