Employer's PAYE
The Pay As You Earn (PAYE) system is a method of tax deduction under which an employer calculates and deducts any income tax due each time a payment of wages, salary etc. is made to an employee.
In addition, employers are obliged to calculate and deduct any liability to Pay Related Social Insurance (PRSI) and income levies.
You must register for PAYE/PRSI if you pay:
- €8.00 per week (€36.00 a month) or more, to an employee who has only one employment
- €2.00 per week (€9.00 a month) or more, to an employee who has more than one employment.
A company must register as an employer and operate PAYE/PRSI on the pay of directors even if there are no other employees.
To register for PAYE/PRSI you must fill in one of the following forms:
PREM Reg - Employer (PAYE/PRSI) Tax Registration Form (PDF, 155KB)- Registration Form TR1 if an individual or partnership (PDF, 410KB)
- TR2 if trading as a company (PDF, 260KB)
These forms can also be used to register for VAT. When you fill in the form and return it to your local Revenue office, you will receive confirmation of your registration as an employer, a registered number for PAYE purposes and detailed information regarding the operation of PAYE/PRSI.