Maintaining your records

Overview

You may use various methods to record your Pay As You Earn (PAYE), Pay Related Social Insurance (PRSI)Universal Social Charge (USC) and Local Property Tax (LPT) deductions. These include:

  • 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.

You are responsible for ensuring that the system you are using is fully compliant with tax law. This is regardless of if you are using payroll software, a payroll company or other agency.

Revenue can inspect your records at any time to make sure you are deducting the correct amounts. 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. They must be available for inspection when required.

Errors discovered during the year

If you find that you made a mistake in an earlier payroll run you should correct this in the run in which it was 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 underpayments 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)