Employee pay day - calculating Income Tax and Universal Social Charge

Other payments

Note

The information on this page refers to your current obligations. For your obligations before 1 January 2019, please see the Employers Guide to PAYE.

You may pay your employees a bonus or arrears of pay on a day outside of their regular pay day. Calculate the tax and Universal Social Charge (USC) due on the total of that week's payments. Use the tax credits, tax and USC cut-off points at that week.

You cannot use tax credits, tax and USC cut-off points from a future week to cover any additional payment you give.

Holiday pay

You may pay your employee 'holiday pay' in advance of their usual pay day. 

Advance holiday pay may result in the employee receiving two or three weeks' pay in one week. The employee then receives no pay in the following two or three weeks. You may apply those weeks' tax credits, tax and USC cut-off points to the holiday pay. This cannot be done if your employee is leaving employment immediately after receiving holiday pay.

Pay earned before 1 January but paid on or after that date

Pay might be earned before 1 January, but paid on or after that date. You must deduct tax, USC and Pay Related Social Insurance (PRSI) at the time you make the payment. You must apply the tax credits, tax and USC cut-off points applicable at the time the payment is made. The payment must be reported to Revenue, on or before the pay date.