PAYE. PRSI. USC. Irish payroll, owned.
Irish payroll is not a configuration exercise. It demands a real-time PAYE Modernisation (PREM) submission engine filing a Payroll Submission Request to Revenue on or before every pay event, PRSI multi-class management with an annual October rate step-up, a three-band USC calculation, My Future Fund auto-enrolment (live from January 2026), SARP expatriate relief administration, and BIK notional pay valuation. Most providers automate the easy parts. Mercans automates all of it — on a single proprietary stack with no intermediaries.
native payroll
vs nearest peer
since inception
- Income Tax — Standard Rate
- 20% up to €44,000/yr (single)
- Income Tax — Higher Rate
- 40% above €44,000/yr
- Personal + PAYE Employee Tax Credits
- €4,000/yr combined (single PAYE worker)
- PRSI — Employer (Class A)
- 11.25% (9% on earnings ≤€496/week)
- PRSI — Employee (Class A)
- 4.2% from 1 Oct 2025
- USC — Top Rate
- 8% above €70,044/yr
- USC — Band 3
- 3% on €27,382–€70,044/yr
- My Future Fund (from Jan 2026)
- 1.5% EE + 1.5% ER + 0.5% State
- National Minimum Wage (2025)
- €13.50/hour (€14.15 from Jan 2026)
- Statutory Sick Pay
- 5 days/yr at 70% (max €110/day)
- Annual Leave
- 4 weeks (20 days) minimum
- PAYE Deadline
- 23rd of following month (via ROS)
- SARP Minimum Salary (new 2026)
- €125,000/yr (existing claimants €100,000)
- Maternity Leave
- 26 weeks ordinary + 16 weeks additional
- Parent’s Leave
- 9 weeks per parent (each child, within first 2 years)
- BIK Small Benefit Exemption
- €1,000/yr (non-cash; excess fully taxable)
Payroll compliance: the details that can’t be missed
Revenue’s PAYE Modernisation system has zero tolerance for late Payroll Submission Requests — every late or incorrect PSR is automatically flagged. PRSI class misclassification triggers DSP and Revenue joint audits. My Future Fund auto-enrolment from January 2026 adds a new employer obligation with hard remittance deadlines. BIK valuation errors are the single most common PAYE audit trigger. None of these failures announce themselves — they accumulate silently until a compliance intervention makes them very expensive.
Late or incorrect PSR — PAYE Modernisation
Employers must file a Payroll Submission Request (PSR) to Revenue on or before every pay date. Late, missing, or inaccurate PSR filings are automatically detected by Revenue’s PREM system and trigger compliance interventions with Revenue interest at 0.0219% per day from the original due date.
PRSI class misclassification — Class A vs S
Incorrectly classifying a proprietary director on Class A (instead of Class S) results in overcollected employer PRSI and incorrectly credited employee contributions. Conversely, placing a de-facto employee on Class S misses the employer PRSI liability entirely. DSP and Revenue conduct joint PRSI class audits with retrospective reclassification and interest.
My Future Fund — auto-enrolment implementation
From January 2026, employers must identify eligible employees (aged 23–60 earning ≥€20,000/yr not in an occupational scheme), deduct 1.5% EE contributions, match 1.5% ER, and remit to the Central Processing Authority alongside the monthly PAYE/PRSI payment. Missed eligibility assessments or remittance failures carry CPA penalties.
BIK notional pay — valuation errors
Benefit-in-Kind must be processed through payroll as notional pay with PAYE, PRSI, and USC applied. Company car valuations using wrong CO² bands, private medical insurance BIK omissions, and voucher amounts above the €1,000 small benefit exemption are the most common PAYE audit triggers. Revenue may issue a Notice of Liability with a 5–10% surcharge plus interest.
The three types of providers who struggle with Ireland
Global Aggregator Platforms
Platforms like Deel, Remote, and Rippling operate through local Irish bureau partners for PREM PSR filing and PRSI. They don’t own the Revenue Commissioners relationship, don’t natively manage PRSI class switching, and typically can’t administer SARP or BIK notional pay in-platform. My Future Fund auto-enrolment implementation is typically in-progress or deferred.
- ×PSR filed via local partner — not native PREM integration
- ×PRSI class A/S/J switching partner-dependent
- ×SARP and BIK valuation out of scope or manual
- ×My Future Fund AE typically deferred or in progress
Irish Domestic Bureaus
Domestic Irish payroll software providers deliver functional PREM integration and PRSI automation but are limited to single-entity Irish payroll. They lack multi-currency, multi-country consolidation, SARP workflow, and the enterprise data security certifications multinationals require.
- ×PREM and PRSI functional for domestic-only payroll
- ×No multi-country or multi-entity consolidation
- ×SARP certification and BIK administration typically manual
- ×No SOC 1/2, ISO 27701, or BCR certification
Large Global Payroll Incumbents
Large payroll incumbents cover Ireland — in name. In practice, Irish coverage is often delivered through legacy platforms or regional bureaus that weren’t built for PRSI class switching, BIK notional pay, or SARP administration. My Future Fund integration is still being built out across most platforms.
- ×PRSI threshold and class switching hardcoded, not dynamically updated
- ×My Future Fund AE integration typically on roadmap, not live
- ×SARP administration requires significant manual input
- ×Long implementation timelines — Ireland not a core market
The only provider that closes every gap
Mercans is the only Ireland payroll provider that combines a proprietary PAYE Modernisation engine with native PSR submission, PRSI multi-class automation, My Future Fund auto-enrolment, BIK notional pay, and SARP administration — all on one contract, with no intermediaries.
The only engine built for Ireland’s full PAYE Modernisation architecture
G2N Nova™ submits a Payroll Submission Request (PSR) to Revenue on or before every pay date, calculates PRSI across all classes with automatic threshold switching (9% ≤€496/week, 11.25% above), applies USC across three progressive bands (0.5%/2%/3%/8%), manages My Future Fund auto-enrolment contributions from January 2026, processes BIK notional pay, and administers SARP relief. This isn’t configuration. It’s engineering.
Ireland-based PREM specialists — not a shared-service queue
Mercans operates an Ireland-resident payroll team of PREM and Revenue Commissioners specialists. They maintain active relationships with Revenue for ROS Digital Certificate management, PSR format updates, PRSI class determinations, SARP certification workflows, and My Future Fund CPA remittance. When Revenue issues a PAYE Modernisation update, we know before it reaches your inbox.
GDPR, DPC & Revenue ROS compliance — the security posture multinationals require
Irish payroll data is governed by GDPR as implemented by the Data Protection Commission (DPC). Revenue requires payroll data transmission via ROS using ROS Digital Certificates. Mercans holds BCR approval, ISO 27701, SOC 1 & 2 Type II, and ISO 27017/27018 — the only global payroll provider with this complete certification stack. Zero security breaches since inception.
Where Mercans wins on every Ireland-specific capability
Each row is an Ireland-specific capability. Each cell shows native coverage as a fill bar — full = native in-platform, half = partial / manual workaround, empty = gap.
Ireland Capability Coverage · 10 dimensions
Per pay event · Revenue ROS · EDS by 15 Feb
Class A / S / J / M · threshold switching
€441 → €496 → €552 · annual Jan change
0.5% / 2% / 3% / 8% · medical card reduced rate
Eligibility · 1.5% EE+ER · CPA remittance · opt-out
Car CO² bands · medical insurance · vouchers
30% relief · €125k threshold · 30 Jun return
TCC-driven · emergency basis · mid-year corrections
Employment Detail Summary · 15 Feb deadline
Revenue ROS cert · DPC DPA · full cert stack
Every rate. Every cap. Every obligation.
Ireland’s 2025–26 payroll framework combines PAYE income tax at 20%/40%, PRSI at up to 11.25% ER (Class A), Universal Social Charge across four bands, My Future Fund auto-enrolment from January 2026, real-time PREM/PSR filing, and BIK notional pay. Mercans tracks every Revenue and DSP update — so your configuration is never discovered to be wrong from a penalty notice.
Ireland · Rate & Compliance Dashboard
Live 2025–26PRSI Threshold — Annual Increase with Minimum Wage
The employer PRSI reduced-rate threshold rises each January to align with the national minimum wage, ensuring a full-time minimum-wage worker remains below the higher rate. €441/week in 2024 → €496/week in 2025 → €552/week from January 2026. Because the higher rate applies to the entire weekly earnings (not just the excess), crossing the threshold creates a discrete cost step. G2N Nova™ applies the current year threshold automatically.
→ Threshold €496/week (2025) · €552 from Jan 2026 · applies to full earningsUSC Third Band — 3% (Reduced from 4% in Budget 2024)
The USC third band rate reduced from 4% to 3% effective 1 January 2024 and remains 3% in 2025 and 2026. The existing Ireland draft (and many payroll configurations) still apply 4% to this band — creating systematic over-withholding for every employee earning above €27,382. Medical card holders and persons aged 70+ earning ≤€60,000 are capped at 2% USC.
→ USC Band 3 = 3% (NOT 4%) · applies €27,382–€70,044 · medical card cap 2%My Future Fund — Contribution Ramp & Salary Cap
My Future Fund contributions ramp over 10 years: Years 1–3 (2026–2028): 1.5% EE + 1.5% ER + 0.5% State; Years 4–6: 2.5% + 2.5% + 0.75%; Years 7–9: 4% + 4% + 1.25%; Year 10+: 6% + 6% + 2%. Employer and State contributions are capped on gross salary up to €80,000. Opt-out windows are months 7–8 after enrolment; employees who opt out are auto-re-enrolled after 2 years.
→ AE ramp: 1.5% → 2.5% → 4% → 6% · €80,000 cap · 2-year re-enrolmentSARP — New Threshold & Revised Employer Return Deadline
For new SARP entrants from 2026, the minimum basic salary threshold increased from €100,000 to €125,000. The 30% tax relief on income above the threshold and the 5-year term remain unchanged. The employer end-of-year return deadline has been extended to 30 June (previously 23 February). SARP was extended to 31 December 2030. An upper income cap of €1,000,000 applies.
→ SARP new threshold €125,000 (2026) · return deadline 30 June · extended to 2030See your real Ireland payroll cost in real time
Employer PRSI, employee PRSI, PAYE income tax, USC, and My Future Fund auto-enrolment — calculated live as you move the slider.
Ireland Payroll Cost Calculator
G2N Nova™ logicEight things only Ireland experts know to handle
These are the compliance details that don’t appear in standard payroll setup guides — but appear in every Revenue PAYE audit, DSP PRSI review, and WRC inspection we’ve encountered in Ireland over 12 years.
Payroll Submission Request — on or before every pay date
Since January 2019, every Irish employer must transmit a Payroll Submission Request (PSR) to Revenue via ROS on or before each pay date — not monthly, not quarterly, not annually: per pay event. Employment Detail Summary (EDS) replaces the P60 and must be filed by 15 February. Revenue’s PAYE Modernisation system detects late and incorrect PSRs automatically.
PRSI threshold switch — the employer cost spike at €496/week
Employer PRSI switches from the reduced rate (9% from Oct 2025) to the higher rate (11.25%) at the weekly earnings threshold of €496 in 2025, rising to €552 from January 2026. Critically, if weekly pay crosses the threshold, the higher rate applies to the entire earnings — not just the excess. This creates a non-linear cost at the boundary. The threshold rises annually with the minimum wage.
USC Band 3 is 3% — not 4%
A common payroll configuration error is applying 4% to the third USC band. Since Budget 2024 (effective 1 January 2024), the third USC band rate reduced to 3% (from 4%), applying on income between €27,382 and €70,044. The top rate of 8% remains above €70,044. Medical card holders and persons over 70 earning ≤€60,000 pay a reduced maximum rate of 2%.
My Future Fund — January 2026 launch, not September 2025
My Future Fund (Ireland’s mandatory auto-enrolment pension scheme) was rescheduled and launched on 1 January 2026, not September 2025. Eligible employees (aged 23–60, earning ≥€20,000/yr, not in an occupational scheme) are auto-enrolled. Contributions: 1.5% EE + 1.5% ER + 0.5% State in Years 1–3, capped at €80,000 annual salary for employer and State contributions.
BIK notional pay — the most common PAYE audit trigger
Benefit-in-Kind must be processed through payroll as notional pay, with PAYE, PRSI, and USC applied on the notional value in the month the benefit is received. Company cars are valued using CO²-band cash equivalent rates. Private medical insurance BIK must be included monthly. The small benefit exemption (€1,000/yr) applies only to non-cash benefits. Exceeding the exemption threshold makes the entire benefit taxable.
SARP — €125,000 new-entrant threshold from 2026 · 30 June filing deadline
The Special Assignee Relief Programme (SARP) provides 30% income tax relief on earnings above the qualifying threshold. For new entrants from 2026, the minimum basic salary threshold increased from €100,000 to €125,000. Existing claimants retain the €100,000 threshold. SARP has been extended to 31 December 2030. The employer end-of-year return deadline is now 30 June (changed from 23 February).
Revenue Payroll Notification — the mandatory TCC replacement
Under PAYE Modernisation, employers must retrieve a Revenue Payroll Notification (RPN) from Revenue before processing each new starter’s first pay event. The RPN replaces the legacy Tax Credit Certificate (P2C). If no RPN is available, emergency tax applies: Week 1/Month 1 basis with no tax credits and PRSI at the higher rate. Employers must re-query Revenue for mid-year RPN updates (e.g. credit changes, SRCOP amendments) during the payroll run — not just annually.
Enhanced Reporting Requirements (ERR) — real-time expense reporting from January 2024
Since 1 January 2024, Irish employers must report certain non-taxable expense payments to employees to Revenue in real time under Enhanced Reporting Requirements (ERR). Reportable categories include: remote working daily allowance (€3.20/day), travel and subsistence payments (Civil Service rates), and Small Benefit Exemption vouchers (up to €1,000/yr). ERR submissions are due on or before the date of payment — not monthly or annually. Revenue has confirmed penalties apply for non-compliance from 2025.
One workforce. Two entirely different compliance tracks.
Irish payroll divides into two primary compliance tracks: PAYE employees on PRSI Class A with full PREM/PSR filing, USC, and My Future Fund auto-enrolment; and proprietary directors on Class S PRSI with no employer PRSI liability and no auto-enrolment. Expatriates under SARP add a third overlay of 30% income tax relief above €100,000 (or €125,000 for new 2026 entrants). Mercans runs all three on every pay cycle.
Parallel Compliance Engines
(Class A PRSI)
PRSI Class A: 4.2% EE + 11.25% ER (from Oct 2025). Applied on gross earnings. Employer PRSI switches between 9% (reduced) and 11.25% (higher) at the €496/week threshold in 2025, rising to €552/week from January 2026. Because the higher rate applies to entire weekly earnings on crossing the threshold, a small pay increment at the boundary creates a discrete employer cost step.
PAYE income tax at 20% / 40%. Calculated on cumulative basis from 1 January, applying Tax Credit Certificate bands and credits. Standard rate cut-off is €44,000/yr for a single person (€53,000 married one-income). Tax credits €4,000/yr (Personal €2,000 + PAYE Employee €2,000) for a single PAYE worker. Emergency (Week 1/Month 1) basis applies for new starters without a TCC.
USC across four progressive bands (0.5–8%). 0.5% on first €12,012; 2% on €12,012–€27,382; 3% on €27,382–€70,044; 8% above €70,044. Medical card holders and persons aged 70+ earning ≤€60,000 are capped at 2% USC. Employees earning ≤€13,000 are fully exempt from USC.
My Future Fund auto-enrolment from January 2026. Eligible employees (aged 23–60, earning ≥€20,000/yr, not already in an occupational pension) are automatically enrolled. Contributions remitted to the Central Processing Authority alongside monthly PAYE/PRSI: 1.5% EE + 1.5% ER + 0.5% State, capped at €80,000 salary.
PSR filed to Revenue on or before every pay date. Payroll Submission Request filed for every pay event. Employment Detail Summary (EDS) replaces P60, filed by 15 February. Monthly PAYE/PRSI payment due by 23rd of the following month via ROS (14th for non-ROS payers).
(Class S PRSI)
Class S PRSI: 4.2% — director pays only, no employer PRSI. Proprietary directors (owning ≥15% of share capital) pay Class S PRSI on salary and Schedule E income. There is no employer PRSI liability for the company — making director-only payroll significantly cheaper from an employer cost perspective. Class S provides pension, maternity, and illness benefit access, but not jobseeker’s benefit.
No PAYE Employee Tax Credit. Proprietary directors do not qualify for the PAYE Employee Tax Credit (€2,000/yr). Only the Personal Tax Credit (€2,000/yr) applies, halving the tax credits versus a PAYE employee at equivalent salary.
USC at standard rates — same four bands. USC applies to director salary at the identical four progressive bands as PAYE employees (0.5%/2%/3%/8%). No USC exemption or class reduction applies to directors.
Auto-enrolment — typically excluded. Proprietary directors are generally excluded from My Future Fund auto-enrolment as controlling shareholders. Executive PRSA or a director’s pension provides the alternative retirement savings vehicle.
PSR required for director salary or fees via payroll. Director fees processed through payroll require a PSR filing to Revenue on each pay date, identical to employee salaries. Schedule E applies if paid as salary; Schedule D may apply for fees paid to a separate entity.
Every obligation. Every authority. Mercans owns the calendar.
Ireland payroll compliance runs across Revenue Commissioners, DSP, WRC, and (from January 2026) the Central Processing Authority on per-payroll, monthly, and annual cadences. Mercans’ managed payroll absorbs every filing as standard scope — you don’t track deadlines. We do.
Payroll Submission Request (PSR) to Revenue
Payroll Submission Request filed electronically to Revenue Commissioners via ROS on or before each pay date. Per-employee gross pay, PAYE, PRSI, and USC deductions reported in real time. Late or incorrect PSRs are automatically flagged by Revenue’s PAYE Modernisation system.
PAYE / PRSI / USC Payment to Revenue
Monthly remittance of PAYE, employee and employer PRSI, and USC collected during the previous month. Due by the 23rd of the following month via ROS. Non-ROS payers must pay by the 14th. My Future Fund CPA remittance due at the same time.
Employment Detail Summary (EDS)
The EDS replaces the P60 under PAYE Modernisation. Filed with Revenue by 15 February for the preceding tax year. Per-employee summary of total gross pay, PAYE, PRSI, and USC. Employees access their EDS via Revenue myAccount. Missing the deadline triggers a Revenue compliance intervention.
SARP Employer Annual Return
Employers with SARP-eligible assignees must file the SARP Employer Return with Revenue by 30 June for each assignee claiming Special Assignee Relief Programme relief in the preceding tax year. The deadline was extended from 23 February to 30 June from 2026. Missing the deadline results in Revenue withdrawing the SARP election, creating retrospective PAYE liabilities.
Employer PRSI Rate Step-Up — 1 October
Employee and employer PRSI rates increase by 0.1–0.15 percentage points each year on 1 October. From 1 October 2025: EE 4.1% → 4.2%, ER 11.15% → 11.25% (higher) and 8.9% → 9% (reduced). From 1 October 2026: EE 4.2% → 4.35%, ER 11.25% → 11.40%. Payroll must be updated on the October pay run.
My Future Fund (CPA) Contributions
From January 2026, monthly CPA remittance of 1.5% EE + 1.5% ER contributions for all eligible auto-enrolled employees, alongside monthly PAYE/PRSI payment. Contributions capped at €80,000 gross annual salary. Opt-out and re-enrolment management ongoing.
BIK Notional Pay & Statutory Leave Tracking
Monthly BIK notional pay processing for company cars, medical insurance, and other taxable benefits. Statutory sick pay (5 days at 70%, max €110/day), maternity (26 weeks), paternity (2 weeks), and parent’s leave (9 weeks) integrated into payroll with PAYE, PRSI, and USC applied or deducted correctly.
Enhanced Reporting Requirements (ERR) — real-time expense submissions
Since 1 January 2024, employers must submit Enhanced Reporting Requirements (ERR) data to Revenue in real time — on or before the date of each payment. Covers remote-working daily allowance (€3.20/day), travel and subsistence (Civil Service rates), and Small Benefit Exemption vouchers. ERR is filed separately from the PSR via ROS. Revenue began enforcing penalties for non-compliance from 2025.
Ireland is one market.
Mercans covers all of Europe on one platform.
For companies running payroll from Dublin to Frankfurt, Paris, Amsterdam, and Warsaw — Mercans delivers native payroll across every major EU jurisdiction on a single contract, with consolidated multi-country reporting and a single point of contact.
covered
1 contract
consolidation
EU
Every filing. Every format. Submission-ready.
Mercans generates the exact file types that Revenue Commissioners, DSP, WRC, and the Central Processing Authority expect to receive — not formatted summaries that need reformatting before submission.
