At some point, every Irish employer arrives at the same moment. Payroll is processed. Returns are filed. And somewhere underneath the relief of getting it done, there's a question that doesn't quite go away: did we get it right? That question is not paranoia. It's the natural result of running a specialist compliance function — six overlapping legal frameworks, each with its own deadlines and penalty structure — as a side task. This guide names what's required, what has changed, and where most Irish businesses are already not yet up to speed without knowing it.
Six obligations. Running simultaneously. Every pay run.
Every Irish employer with staff is managing the following on every pay run. Not occasionally. Not at year-end. Every time payroll runs. Miss one — or get the timing wrong — and the consequences are Revenue penalties, NAERSA fines, WRC claims, or all three simultaneously.
1 PAYE Real-Time Reporting (PSR) Live since 2019 A Payroll Submission Report must be filed with Revenue on or before every pay date — not monthly, not quarterly, but at every single pay run. This replaced the old annual P35 system in January 2019. Late or inaccurate PSR submissions attract fixed penalties. Employers who are still treating payroll reporting as a monthly or annual task are already non-compliant. 2 My Future Fund — Auto-Enrolment Live since Jan 2026 Ireland's mandatory pension auto-enrolment scheme launched 1 January 2026. Employers must register on the NAERSA portal, retrieve Auto-Enrolment Payroll Notifications (AEPNs) at every pay run, and submit contributions via AECS on time each pay date 3 Enhanced Reporting Requirements (ERR) Mandatory since Jan 2024 Real-time reporting of all non-cash benefits and expenses to Revenue, including travel and subsistence payments, remote working allowances, and small benefit exemptions. ERR must be submitted on or before the date the benefit is paid or provided. This is a separate submission from the PSR and catches many employers off-guard because it covers payments that were previously reported only at year-end. 4 Statutory Sick Pay (SSP) In force Employees are entitled to statutory sick pay for up to 5 days per year, paid at 70% of their normal daily pay up to a maximum of €110 per day. Employers must track SSP entitlement, calculate the correct daily rate, and report sick pay through payroll in real time. Failure to pay SSP correctly gives employees the right to bring a WRC claim. 5 Benefit-in-Kind (BIK) Not at year-end. The BIK rules were significantly tightened from January 2023, and the electric vehicle exemptions and mileage-based calculations have caught many employers. BIK. 6 PRSI Classification Frequently incorrect Pay Related Social Insurance contributions must be calculated at the correct class for each employee. Misclassification — particularly of directors, proprietary directors, and workers on non-standard contracts — is one of the most common sources of Revenue underpayment notices. The employer's PRSI rate increased to 11.25% from October 2024.What has changed most significantly in recent years
Auto-enrolment — the biggest shift since PAYE Modernisation
My Future Fund is the most significant change to Irish payroll since the introduction of real-time reporting in 2019. Unlike a once-off registration task, auto-enrolment creates recurring obligations at every pay run — AEPN retrieval, AECS submission, opt-out processing, noting that re-enrolment is managed by NAERSA. The scheme is mandatory for employees aged 23–60 earning over €20,000 per year who are not already in a qualifying occupational pension. Employer contributions in Years 1–3 are 1.5% of gross pay, matched by 1.5% from the employee and 0.5% from the State.
⚠️The opt-out wave — July 2026
Employees enrolled from January 2026 enter their opt-out window in July 2026. This is not automatic — employers must retrieve updated AEPNs, stop deductions from the correct pay date, and note that re-enrolment is managed centrally by NAERSA timelines (every 2 years). Employers who set up auto-enrolment in January and haven't revisited it since are likely already processing incorrectly.
Enhanced Reporting Requirements — the obligation most employers underestimate
ERR was introduced on 1 January 2024 and requires real-time reporting of a wide range of payments that were previously invisible to Revenue until year-end. The most commonly missed categories are:
- Travel and subsistence payments to employees (including flat-rate allowances)
- Remote working daily allowances (up to €3.20 per day, tax-free)
- Small benefit exemptions (up to €1,000 per year, two occasions)
- Share-based remuneration under approved schemes
The penalty for failing to submit ERR is the same as for late PSR submissions — and Revenue has been actively checking ERR compliance since Q3 2024.
Minimum wage — updated January 2026
The national minimum wage increased to €14.15 per hour from 1 January 2026. Employers must ensure all hourly-paid employees are receiving at least this rate and that payroll software has been updated to reflect it. The minimum wage for employees under 20 is subject to sub-minimum rates — check the current Schedule with Revenue if you employ younger workers.
Where most Irish employers are already non-compliant
When CBCR reviews payroll for new clients, the same failures appear repeatedly. Not because employers are careless — because the obligations are specialist and the guidance is incomplete. Here is what we find most often:
- Treating PSR as a monthly task. The PSR must be filed on or before each pay date — weekly payroll requires weekly submissions. Many smaller employers and accountant-managed payrolls are still filing monthly.
- Not retrieving AEPNs at every auto-enrolment pay run. The AEPN must be retrieved fresh before each run. Using the January setup and not updating it is a direct compliance failure.
- Missing ERR for travel allowances. Fixed travel allowances paid to employees on a regular basis must be reported under ERR, even if they fall within Revenue's approved rates.
- Calculating SSP on base salary only. SSP is calculated on gross pay, not basic salary — overtime, commission, and regular bonuses must be included in the calculation.
- Wrong PRSI class for directors. PRSI class for directors is determined on a case-by-case basis depending on control and employment status — not a simple shareholding rule. This is one of the most frequently misclassified categories in Irish payroll.
What outsourcing actually means. Not the version in the brochure.
Six compliance frameworks. Each with its own deadlines. Its own penalty structure. Its own technical requirements. That is not a side task — it is a specialist function. And yet most Irish businesses are running it as though it is neither. The honest calculation is this: staff time spent processing payroll, time spent staying current with Revenue changes, software costs, training costs, and the exposure to penalties when something is missed. Most businesses have never added it up. When they do, the number is uncomfortable.
A properly managed outsourced service handles every one of these obligations as part of the monthly fee. PSR filed on every pay date. AEPNs retrieved, Contributions submitted on time every pay date. ERR captured and filed. SSP processed in line with statutory rules through payroll. BIK reported in real time. Employment Detail Summaries generated by Revenue at year-end. Not as extras. As the standard.
And when something changes — a Budget update, a new Revenue requirement, a minimum wage increase — it's applied before it affects your next run. Without you having to ask. Without you having to know it happened.
Not sure if your payroll is fully compliant?
CBCR offers a free 30-minute Payroll Health Check covering all six obligation areas. We'll tell you exactly where you stand — no obligation, no sales pressure.
About the authorThis article was written and updated by the CBCR Payroll Solutions team. CBCR is an IPASS-certified payroll outsourcing practice based in Swords, Dublin. Originally published December 2023 — updated June 2026 to reflect My Future Fund auto-enrolment, ERR requirements, and €14.15 per hour from January 2026s. Contact us at Send us an email or 01 566 5247.