Maintaining your records

Overview

You may use any of the following to record your Pay As You Earn (PAYE), Pay Related Social Insurance (PRSI) and Universal Social Charge (USC) and Local Property Tax (LPT) deductions:

  • a computerised system
  • a record system of your own design
  • the services of a payroll company
  • an electronic Tax Deduction Card (TDC)
  • a USC payroll card
  • an LPT payroll card.

If you are using payroll software or a payroll company or other agency you are still responsible for ensuring that the system in use is fully compliant with tax law.

Revenue can inspect your records at any time to make sure you are deducting the correct amount of tax, USC, PRSI and LPT. See Code of Practice for Revenue Audit and other Compliance Interventions.

You must keep all records for six years after the end of the tax year to which they refer and make them available for inspection when required.

Errors discovered during the year

If you find during the course of the year that you made a mistake in an earlier payroll run you should correct this in the week or month in which the mistake is discovered. The original entries should not be changed. You should make a note against them to show that the mistake has been corrected in the later week (or month).

Large under-deductions

You should not collect an under-deduction of tax or USC where it is so large that it causes hardship to the employee. You should contact us for instructions.

Next: Tax Credit Certificates (P2Cs)