The Republic of Ireland is an excellent place to expand your business. However, strong employee protections and complicated compensation and benefits laws can prove challenging to hire employees and start payroll.
Taxation rules in the Republic of Ireland
Employers have various tax obligations to fulfill in order to ensure compliance. For example, you are legally obligated to tell employees about any pension or personal retirement savings account (PRSA) plans your company provides. If you do not have a pension plan, employees must have access to a PRSA.
Both employers and employees pay into the Republic of Ireland’s social insurance fund called Pay Related Social Insurance (PRSI). Employers contribute 8.8% on all incomes of up to EUR 441 per week or 11.05% on incomes exceeding EUR 441 per week. The Republic of Ireland uses a pay-as-you-earn (PAYE) system for employee taxes.
The Republic of Ireland payroll options
As every company is different, so are your payroll options. The 3 main ways to set up your Republic of Ireland payroll include:
- Internal: Larger companies committed to their subsidiary in the Republic of Ireland may opt to run payroll out of their local branch. However, you will need to hire a dedicated team and make sure you have a complete understanding of the country’s employment laws.
- Outsourcing: Some companies may not have the time, money, or resources to choose internal payroll. You can outsource your payroll to a local company in the Republic of Ireland, but you will still be responsible for any mistakes.
- Employer of record: You can also work with an employer or record such as G-P. We will process your payroll accurately and on time, so you won’t have to worry about compliance.
How to set up payroll in the Republic of Ireland
Handling payroll yourself could take 6 to 9 months and often requires more than 6 figures of registered capital. You’ll need a significant amount of time and money to set up your payroll fully.
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Contact us to learn more about how we can support you.