Registration of Employers for PAYE Purposes
- Register of employers
- Application for registration
- Compulsory registration by Revenue
- Employer ceases to have employees
- Death of an employer
- Change of ownership of a business
- Separate registration numbers for the same employer
Any employer who makes payments exceeding a rate of:
- €8 per week (or €36 per month) in the case of an employee engaged full-time or
- €2 per week (or €9 per month) where the employee has other employment
and who is not already registered must register for PAYE purposes. An employer is also required to notify Revenue of their name and address and of the fact that they are making such payments within a period of 9 days after the date of commencement.
A company must register as an employer and operate PAYE on the income of directors even if there are no other employees. A director of an Irish incorporated company is liable to PAYE on any income attributable to the directorship irrespective of their residence status or where the duties of the directorship are performed.
Notification should be sent to the local Revenue office responsible for the geographic location where the business is managed and controlled within 9 days from the date the employer is so liable. See contact page for a full listing of these Revenue offices.
An individual who makes payments to an employee in a domestic employment where:
- the payments from that employment are less than €40 per week, and
- the employer has only one such employee
need not register as an employer.
To register for PAYE/PRSI you must complete:
- Form TR1 (PDF, 1MB) if you are an Individual/Sole Trader or a Partnership, or
- Form TR2 (PDF, 924KB) if you are registering a company, or
- Form PREM Reg (PDF, 230KB) if you are already registered for Income Tax (either as self-employed or as an employee) or Corporation Tax.
These forms are also available from Revenue's Forms and Leaflets Service:
Telephone: 1890 30 67 06, + 353 1 70 23 050.
When you complete the form and return it to Revenue you will receive confirmation of your registration as an employer and a registered number for PAYE and PRSI purposes.
Where there is reason to believe that an employer is liable to register for PAYE purposes and has not done so, Revenue will register the employer and issue formal notice of registration. An employer who claims that they are not obliged to register for PAYE should object in writing to Revenue within 14 days from the date of service of the notice of registration.
Furthermore, in the event of failure to operate the PAYE system and where PAYE and PRSI deductions are not made, Revenue may issue formal notice of estimation in respect of any amounts of PAYE and PRSI not remitted (see Employers duties at the end of the Income Tax Year for further information on such estimates).
An employer who ceases to make payments to employees is obliged to notify Revenue of the fact within 14 days from the date of such cessation. This notification should be sent when the employer ceases to have employees and is unlikely to have employees in the future or when the employer's trade or business ceases. The instructions in Employers duties at the end of the Income Tax Year paragraph 7 regarding completion of end-of-year returns and where necessary the instructions in Cessation of Employment / Death of an Employee paragraphs 1 - 8 regarding the completion of form P45 should then be followed.
Where an employer dies and there are no longer any employees (e.g. if a business is discontinued) the executors or administrators should carry out the procedures set out in paragraph 4. If employees are retained (e.g. if a business passes to a successor) paragraph 6 applies.
Where a business is transferred by sale, assignment, bequest under a will etc., to another individual, partnership or body corporate, the new employer should advise Revenue accordingly if payments, as outlined in paragraph 1 are paid. A new registration number may be required in such cases (paragraph 2).
There are a number of circumstances where an employer may find it convenient to have separate registration numbers for different groups of employees:
- An employer who has one or more branches may find it convenient to have each branch separately registered for PAYE/PRSI purposes. The employer may only do this where the employees in each branch are paid from that branch and not from head office.
- An employer who keeps separate wages records for different groups of employees (e.g. office, factory etc.) may wish to make separate PAYE and/or PRSI remittances and returns under a separate registration number for each group.
- An employer who pays a salary or wages to an employee to whom they also pay a pension should have a separate registration number under which a PAYE/PRSI record may be kept in respect of the pensioner's salary or wages in addition to the pension registration number.
- A limited company may wish to make separate PAYE and/or PRSI remittances and returns under a separate registration number in respect of directors.
If any of the above applies, the employer should notify Revenue where separate registration is required for each branch, group, etc.
Ordinarily, an employer will remit the amounts due under each separate registration number to the Collector General. However, an employer may arrange with the Collector General to remit the total of those amounts under the principal ("head office") registration number if this is more convenient.
Note: The use of separate registration numbers for separate groups of employees rather than one registration number for all employees can involve extra work for the employer as they will be making separate returns to Revenue and to the Collector General.
For example the P45 procedure as detailed in Cessation of Employment / Death of an Employee (see especially part 9) will have to be followed if an employee "transfers" from one registration number to another.
Any employer, other than an employer who pays a salary or wage to an employee to whom they already pay a pension, who is considering the use of more than one registration number, should discuss the matter with Revenue before formally applying for additional registration numbers.