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Payroll for Tech Companies and Startups in Ireland
Startup payroll changes quickly. A founder can be the only person on payroll in January, a funding round can add ten hires by summer, and share options, restricted stock units, international assignees or remote employees can introduce payroll questions that a stable salary-only payroll never encounters.
Payrollcompany.ie provides managed payroll for Irish startups, SaaS companies, product businesses and scaling technology teams. The service is built around fast employee changes and specialist payroll events, while tax, legal and eligibility decisions that require separate advice remain with the employer and the relevant adviser or authority.
Monthly Payroll — By Headcount
1-9 employees
€30 / employee
10-20 employees
€25 / employee
21+ employees
Custom quote
- RPN retrieval & Revenue submissions
- Equity, RSU & SARP payroll events
- MyFutureFund & ERR administration
- A dedicated payroll manager
WHAT’S INCLUDED
Payroll That Can Keep Up With a Fast-Growing Team
Growth rarely arrives in tidy payroll increments. You may hire several people in the same month, introduce a bonus plan, move a founder onto a regular salary, bring in a senior employee from an overseas group company or start granting equity before the business has built a formal payroll operations function.
Depending on your agreed service, we can process:
- Weekly, fortnightly and monthly payroll.
- Latest Revenue Payroll Notification (RPN) retrieval before each pay run.
- High-volume starters and leavers during recruitment periods.
- Share-option and share-award payroll events where the tax treatment has been established.
- Benefit-in-kind payroll calculations where applicable.
- MyFutureFund payroll administration using official enrolment information.
- A dedicated payroll manager.
- PAYE, USC and PRSI calculations.
- Revenue payroll submissions on or before the pay date.
- Bonuses, commission and other variable pay.
- SARP payroll treatment where the employee has qualified and the work is included in the agreed scope.
- Enhanced Reporting Requirements administration where applicable.
- Payroll reporting, corrections and digital payslips.
The practical requirement is consistency. Each starter, salary change, bonus, option exercise or vesting event needs to reach payroll before the relevant cut-off, be treated correctly and appear in the right Revenue reporting process.
TECH & STARTUP PAYROLL PRICING
Tech and Startup Payroll Pricing
The approved Payrollcompany.ie monthly pricing applies by employee number. Weekly, fortnightly and low-frequency payrolls use the separate per-payslip rates shown on the Pricing page.
1-9 Employees
€30
per employee / month
10-20 Employees
€25
per employee / month
21+ Employees
Custom
quote on request
SHARE-BASED PAY
Equity Events Need to Reach Payroll at the Right Time
Equity is one of the clearest differences between startup payroll and an ordinary salary-only payroll. The tax point, payroll treatment and annual Revenue return depend on the type of award, so share options, restricted stock units (RSUs) and qualifying KEEP options should not be grouped together as if they work the same way.
KEEP Is Available for Qualifying Options Granted Through 2028
Revenue’s current guidance confirms that the Key Employee Engagement Programme (KEEP) is available for qualifying share options granted between 1 January 2018 and 1 January 2029. That resolves the uncertainty that existed in earlier 2026 material while the extension was awaiting State Aid commencement.
Where all conditions are satisfied, the gain on exercise is exempt from Income Tax, USC and PRSI. Revenue approval is not required in advance, but the company, employee and option conditions still have to be met.
Check current Revenue KEEP guidance before options are granted or exercised because qualification is fact-specific.
KEEP also has a separate employer reporting requirement. A KEEP1 return is required for a year in which qualifying options are granted or a qualifying option is exercised, assigned or released.
RSUs Are Taxed at Vesting
RSUs are not share options. Where an RSU creates an Irish payroll charge, the taxable event is generally the vesting of the award rather than the exercise of an option. The taxable value is processed through payroll, and the employer reports relevant RSU events on Form ESA.
There is also a useful employer-cost distinction. Revenue confirms that employer PRSI does not apply to qualifying share awards in the employer company or a company that controls it, while cash-settled RSUs are treated as normal pay for employer PRSI. The Revenue share-award guidance sets out the current treatment.
Unapproved Share Options Are Taxed Through Payroll From 2024
For gains realised when an employee or director exercises, assigns or releases an unapproved share option on or after 1 January 2024, the employer operates PAYE through payroll. The old employee process of paying RTSO within 30 days and filing RTSO1 no longer applies to those post-2023 gains.
Income Tax, USC and employee PRSI are calculated using the current payroll position, and the employer also has an annual RSS1 reporting obligation. Revenue distinguishes ordinary option gains from cash payments made to release an option, which can have a different employer PRSI treatment.
ABOUT JOBS
Share Payroll and Annual Share Reporting Are Separate Jobs
Putting a taxable share event through payroll does not remove the separate annual return. Revenue currently uses different returns for different arrangements, and the standard share-reporting deadline is 31 March following the year in which the activity arose.
| Arrangement | Payroll Point | Annual Return |
|---|---|---|
| Qualifying KEEP option | No IT / USC / PRSI on qualifying exercise | KEEP1 |
| Unapproved share option | PAYE on exercise, assignment or release from 1 January 2024 | RSS1 |
| RSU / share award | PAYE when the relevant taxable event occurs | ESA |
Payrollcompany.ie can process the agreed payroll event where share-scheme payroll work forms part of your service. The company remains responsible for scheme qualification, valuations, legal documentation and any specialist tax advice that sits outside payroll processing.
INTERNATIONAL ASSIGNEES
SARP for Senior International Assignees
The Special Assignee Relief Programme (SARP) can be relevant where a technology business brings a senior employee into Ireland from an overseas group company. It is an Income Tax relief with detailed eligibility and certification conditions, not a general exemption for every international hire.
The employee must normally have worked outside Ireland for the assigning employer for at least six months immediately before the assignment, must perform Irish duties for at least 12 consecutive months, must satisfy the residence conditions and must hold a PPSN. Certification after day 90 costs the employee SARP for the first year of residence, though they can then claim for a maximum of four following years.
SARP reduces Income Tax, not USC. PRSI can still apply to the full remuneration unless the employee is separately outside Irish PRSI. SARP claimants must file an annual Form 11, and the employer has a separate annual SARP return due 30 June following the tax year.
Where SARP payroll treatment is included in the agreed scope, we can apply the approved payroll position. Eligibility certification, cross-border social-security analysis and individual tax advice should be resolved before the payroll treatment is finalised.
ONBOARDING AT SPEED
Rapid Hiring Makes Starter Data More Important
Fast hiring creates a simple payroll risk: the first pay date arrives before the starter information does. Each employee needs a clean employment record and the latest RPN before payroll if Revenue has made one available.
A good startup payroll process collects the PPSN, start date, pay basis, benefits, pension information and approved variable pay before the payroll cut-off. That is more scalable than fixing the same missing details after every hiring wave.
Our Revenue Payroll Notification guide covers first employments, missing RPNs and emergency-basis treatment in detail, so those mechanics do not need to be repeated on this industry page.
REMOTE & CROSS-BORDER
Remote Teams and Cross-Border Payroll Need Individual Review
Remote does not automatically mean outside Irish payroll. The correct treatment depends on where the employee performs duties, their residence position, the employment itself and any Revenue direction or relevant tax treaty.
Founders and overseas directors should be reviewed separately from remote employees. Our Director Payroll in Ireland guide →
EMPLOYMENT STATUS
Contractor Labels Do Not Decide Employment Status
Startups often begin with freelancers and contractors because the team is small and the work changes quickly. The risk comes when the working relationship evolves but the tax classification never gets revisited.
Revenue applies the Supreme Court’s Karshan five-step framework when determining whether a worker is an employee or self-employed for tax purposes. The label in the contract, the fact that somebody sends an invoice, or the use of a personal company does not by itself settle the classification.
The framework looks at remuneration, personal service, control, the overall facts of the relationship and whether legislation changes the conclusion. Revenue’s employment-status guidance should be used when the business engages workers outside ordinary employment.
Payrollcompany.ie processes people under the payroll treatment that applies. We do not make a legal or tax status determination simply because the business wants someone treated as a contractor.
STATUTORY OBLIGATIONS
MyFutureFund and ERR Still Apply to Startup Payroll
MyFutureFund
MyFutureFund does not become relevant only when a startup reaches a particular headcount. NAERSA identifies and enrols eligible employees, and payroll applies the official Automatic Enrolment Payroll Notification.
Enhanced Reporting Requirements (ERR)
can also apply where the business provides specified reportable payments or benefits. Revenue currently requires the relevant information on or before the payment date. See detailed categories and reporting process in our Enhanced Reporting Requirements guide.
FOUNDER PAY
Founders Paying Themselves
A founder who is also a company director should not assume that their payroll is identical to an ordinary employee’s payroll. The company must operate PAYE on director remuneration, but proprietary-director self-assessment and PRSI classification can introduce separate obligations.
Revenue treats proprietary directors as chargeable persons for self-assessment. PRSI can depend on ownership and control, so a founder’s PRSI class should not be guessed from the fact that they are a director.
The Director Payroll in Ireland guide explains those issues separately so the tech page can stay focused on how founder pay fits into the wider startup payroll.
EACH PAY RUN
What we need from you each payroll
The fastest payroll is not the one with the fewest controls. It is the one where each change reaches payroll in a predictable format before the cut-off.
- New starters, leavers and approved employment changes.
- Bonuses and commission.
- RSU vesting or other share-award events that require payroll treatment.
- Benefits-in-kind and recurring deductions.
- Pension and MyFutureFund information supplied through the applicable process.
- Salary, hourly-rate and variable-pay changes.
- Approved share-option exercises, assignments or releases that require payroll treatment.
- SARP payroll information where the employee's approved position is within scope.
- ERR information where relevant.
- Any correction affecting an earlier payroll.
We calculate the payroll, apply the latest available Revenue information, make the agreed Revenue payroll submission, and issue the agreed reports and digital payslips. Revenue still places the legal responsibility for payroll compliance with the employer even where a payroll company is used.
SWITCHING PROVIDER
Switching an existing tech payroll
A provider switch can be made during the tax year. For a tech company, the handover should identify not only employees and year-to-date balances but also recurring benefits, equity events already processed, SARP employees, different pay frequencies and any cross-border arrangements that affect payroll.
Our payroll migration service covers the reconciliation, Revenue access and first live pay run in detail.
WHAT GOES WRONG
Common tech and startup payroll problems
Equity events reach payroll after the taxable event.
If the payroll team learns about an exercise or vesting after the fact, the business may need a correction rather than a clean first-time submission.
Old RTSO instructions are still being followed.
For gains on unapproved options realised from 1 January 2024, the employer operates the payroll withholding. The old 30-day employee RTSO1 process applies to earlier gains, not current exercises.
SARP is treated as a general expat exemption.
It is a conditional Income Tax relief with salary, prior-employment, residence, assignment and certification requirements.
A contractor relationship changes without a status review.
An early contractor can become more integrated into the business as the company grows. Employment status should be revisited when the facts change.
KEEP is assumed to apply without checking the conditions.
The scheme is available through 2028 for qualifying grants, but the company, employee and option conditions still need to be satisfied.
RSUs are treated like share options.
RSUs and options have different taxable events and annual reporting routes. The award type needs to be identified before payroll.
Remote employment is assumed to be outside Irish payroll.
Remote location alone does not settle the PAYE, USC or PRSI position. Cross-border cases need to be set up from the actual facts and official Revenue or social-security position.
FAQs
Common questions about tech startups
Can KEEP Still Be Used for Options Granted in 2026?
Yes, subject to the qualifying conditions. Revenue’s current March 2026 guidance confirms that KEEP is available for qualifying share options granted between 1 January 2018 and 1 January 2029.
How Are Unapproved Share Options Taxed Now?
For gains realised on or after 1 January 2024, the employer operates Income Tax, USC and employee PRSI through payroll when the option is exercised, assigned or released. The employer also has the separate RSS1 annual reporting obligation.
Are RSUs Taxed the Same Way as Share Options?
No. RSUs are generally taxed when the award vests or the shares pass to the employee, if earlier, where an Irish payroll charge applies. Relevant RSU events are reported on Form ESA.
What Is the SARP Salary Threshold for New 2026 Arrivals?
For employees arriving on or after 1 January 2026, the minimum basic salary is €125,000 a year, excluding bonuses, commissions, benefits and share-based remuneration. All other qualifying conditions still apply.
Can a Remote Employee Be Paid Without Irish PAYE?
Possibly, but not simply because the employee works remotely. Revenue may issue a PAYE Exclusion Order for a non-resident employee working outside Ireland in appropriate circumstances. Split-duty cases and directors require different analysis.
Can We Treat a Freelancer as a Contractor Because They Invoice Us?
No. Revenue uses the Karshan five-step framework and looks at the actual working relationship. The contract label or invoice alone does not determine whether the person is an employee or self-employed for tax purposes.
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