Payments to employees

Directors

The PAYE system applies to both proprietary and non-proprietary directors as it does to any other employee.

You must request a Revenue Payroll Notification (RPN) and apply the details returned to the pay of the director. Any payments paid to directors must be reported to Revenue on or before the pay date. 

Proprietary Directors are still required to complete a Form 11. Income received by a proprietary director in respect of that directorship is assessable on an earnings basis. This means the income is taxed in the period in which it is earned. Income received by a non-proprietary director is assessable on a receipts basis. This means the income is taxed in the period in which it is received.

Proprietary directors 

Proprietary directors are subject to self-assessment regardless of whether they have other income or not. Where a director’s salary is voted, you must operate PAYE on the date the payment is made. 

Emoluments paid more than six months after the end of the accounting year, are deemed paid on the last day of the previous year.

You must make an amendment to the payroll submission for that period and resubmit to Revenue.

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