Employers must record payroll details every time an employee is paid starting January 1, 2019. These details must be reported on or before the due date.

You must complete payroll submissions if you made payments to your employees during the month. You must submit a payroll entry each week if you pay your employees weekly.

By the 5th of the next month, revenue may have generated a statement. Based on your payroll submissions, the statement will display your total responsibility for that month.

You have until the 14th of the next month to accept the statement, after which it will become a monthly statutory return. If you refuse to accept the statement, Revenue will consider it to be the monthly mandatory return for that day.

Rule for calculating tax

This is how your employee's tax is calculated if you pay them weekly:

• apply the standard rate of tax on their taxable pay up to their weekly cut-off point
• apply the higher rate of tax on the balance of taxable pay above their weekly cut-off point
• add the two amounts above
• subtract the amount of their weekly tax credits.

If you pay your employees fortnightly or monthly, the same principles apply.

What next?

Should you wish to pay your employees’ income tax and USC liabilities contact our qualified professionals advisor today.