Paying employees' tax to Revenue
Paying tax on an employee's minor and irregular benefits
If an employer wants to pay the tax due on employee benefits that are both minor and irregular, the employer must arrange this with Revenue. This can be done by way of a PAYE Settlement Agreement (PSA). To arrange a PSA, the employer can make an application to Revenue in writing. The employer's PSA application must be received by Revenue on, or before, 31 December in the relevant tax year. The PSA arrangements do not apply to:
If the employer pays an employee's tax on a minor and irregular benefit, this will not count as income. The employee cannot claim credit for tax the employer has paid. Also, the employee cannot count the Pay Related Social Insurance (PRSI) which the employer has paid on the benefit towards their own records.
For further information, please see the Tax and Duty Manual PAYE Settlement Agreements.
Next: Pay Related Social Insurance (PRSI)