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Payroll for Motor Dealerships and Garages in Ireland

Motor trade payroll often combines several pay patterns in one business. Sales staff may have salary and commission, workshop teams may be hourly paid, apprentices need separate treatment, directors can have their own payroll considerations, and demonstrator or company vehicles can create Benefit-in-Kind (BIK) calculations that change as vehicles are rotated.

Payrollcompany.ie processes weekly, fortnightly and monthly payroll for Irish dealerships, independent garages, vehicle retailers, repair centres, bodyshops, short-term car hire businesses, leasing businesses and motor distributors. If you want the wider Irish payroll framework first, our Running Payroll in Ireland guide explains the core PAYE, USC, PRSI and Revenue reporting process that sits underneath the motor-trade specifics covered here.

Payroll pricing snapshot

Monthly · 1–9 employees

€30 / employee

Monthly · 10–20 employees

€25 / employee

Monthly · 21+ employees

Custom quote

Built around how motor businesses pay people

Payroll built around how a motor business actually pays people

A dealership can have a monthly-paid sales team, weekly-paid technicians, an apprentice programme, a director on payroll and staff moving between demonstrator cars during the same month. The payroll process needs to keep those arrangements separate without turning every change into a manual workaround.

Our motor trade payroll service can include:

Pricing

Motor trade payroll pricing

Our standard monthly payroll pricing applies to motor dealerships, garages and other motor-trade employers.

Employees	Monthly Payroll
1-9	€30 per employee per month
10-20	€25 per employee per month
21+	Custom quote

Pricing also depends on pay frequency and the work included in the agreed payroll scope, so you can compare the available options on our payroll pricing page before deciding how you want the payroll structured.

Demonstrator & company-car BIK

Demonstrator and company-car BIK in the motor industry

Vehicle BIK is the main area where motor-trade payroll can differ substantially from an ordinary office payroll. A salesperson or manager may use one car for a short period and then move to another, while other employees may have a specific company car for much longer. Those situations should not automatically be processed in the same way.

Simplification arrangement

Revenue has a motor-industry simplification arrangement

Revenue recognises that employees in the motor industry can use several different vehicles during a tax year. Its motor-industry BIK guidance provides reduced average Original Market Value (OMV) figures that can be used by qualifying motor-industry employers when calculating the taxable benefit.

The arrangement covers employees in the retail motor trade and short-term car hire trade, together with relevant employees of used-car retailers, franchised new-and-used retailers, short-term car hire providers, motor distributors and car-leasing businesses. It is designed for frequent vehicle changes, meaning changes within periods of less than one month.

Where the arrangement applies, the average OMV is determined by the highest value of the vehicles the employee normally drives and the relevant Revenue band for that part of the motor industry. Occasional use of a vehicle in a higher or lower bracket does not, by itself, change the average OMV used.

The arrangement does not apply where an employee has exclusive use of a specific vehicle for a predictable period exceeding one month. In that situation, the BIK calculation moves back to the vehicle’s actual OMV.

Motor-industry BIK guidance →

Exclusive use

A €80,000 demonstrator does not necessarily mean an €80,000 BIK OMV

Revenue gives an example of an employee of a garage selling new and used cars who privately uses a vehicle with an actual OMV of €80,000. Under the motor-industry calculation, the OMV used for the BIK calculation is €51,000. The example shows why a dealership should identify whether the special arrangement applies before processing every demonstrator as an ordinary fixed company car.

Employees retain a statutory right to have BIK calculated using the actual OMV of the vehicles made available to them. Where the special arrangement is used, the employer also needs records showing the vehicles driven, their values, the OMV band used and the BIK calculation for each employee.

arrangement can be lost

If private use is not taxed, the special arrangement can be lost

Revenue is explicit about the consequence of non-compliance. If an audit or other compliance intervention finds that the employer did not operate PAYE on employees’ private use of cars, the motor-industry special arrangement does not apply and the full OMV is used. For a dealership with several employees using demonstrators, that can materially change the payroll exposure.

pool car condition

When a demonstrator may qualify as a pool car

A demonstrator is not automatically taxable simply because it is owned by the dealership, but a vehicle made available for private use normally creates BIK and travel between home and work is generally treated as private use. Revenue’s pool-car conditions provide an exemption only where the car is genuinely shared by more than one employee, is not ordinarily reserved for one person, any private use is merely incidental and the car is not normally kept overnight at or near an employee’s home.

If the facts do not support those conditions, calling a vehicle a pool car does not make the exemption apply. We therefore need to understand how the vehicle is actually used, not just how it is described internally.

pool-car conditions →

Standard company-car BIK

Standard company-car BIK where the motor arrangement does not apply

Where a specific employee keeps a car for longer periods, or the motor-industry arrangement is otherwise unavailable, the ordinary company-car rules apply. Revenue’s current company-car BIK calculation uses the car’s OMV, annual business kilometres and CO2 category.

For 2026, zero-emission cars are in Category A1. Cars in Categories A1 to D receive the temporary €10,000 OMV reduction, while Category E does not. A fully electric car can also receive the separate €20,000 electric-vehicle OMV reduction for 2026, which means the combined 2026 reduction can reach €30,000 before the relevant percentage is applied.

Vehicle BIK is not a set-and-forget calculation. Business mileage and vehicle use should be reviewed during the year, and Revenue recommends that notional pay is reviewed regularly, at least quarterly, so payroll reporting remains as accurate as possible.

Sales payroll

Sales commission needs to work with minimum-wage rules

Sales payroll can include basic salary, vehicle commission, finance or product commission, quarterly incentives and bonuses paid after the sale has been completed. Payroll can process those structures, but the National Minimum Wage test still needs to be applied correctly for employees who are within the legislation.

Fees, bonuses and commission can be reckonable pay, as explained by the Workplace Relations Commission. Overtime, public-holiday, Saturday, Sunday and unsocial-hours premiums are not reckonable components for this calculation. The employer selects a pay reference period for each employee, and it can be a week or longer but cannot exceed one month.

That means commission can help an employee meet the minimum hourly rate within the applicable reference period, but a strong later month cannot simply be used to rewrite a shortfall in an earlier completed reference period.

Workplace Relations Commission →

Commission corrections and clawbacks need a lawful payroll route

A vehicle sale can be cancelled, finance can unwind or a commission figure can be corrected after it has already been paid. The payroll record should reflect the correction, but that does not mean an employer can automatically deduct any amount it chooses from a later wage.

Where an adjustment involves taking money from later pay, the deduction needs a lawful basis. Deductions must be required or authorised by law, authorised by the employment contract, or agreed in writing in advance, with additional restrictions applying to certain deductions linked to employee acts or omissions.

For payroll purposes, the safest process is to document the reason for the adjustment, confirm the contractual or written basis for any deduction and then process the correction through payroll so the payslip and Revenue record remain aligned.

Workshop payroll

Technicians, workshop teams and motor-mechanic apprentices

Workshop payroll usually looks different from sales payroll. Technicians may be paid hourly, with overtime, call-outs, weekend premiums or productivity bonuses, while service advisers and administration staff may be salaried. Those pay elements can sit in the same employer payroll while still following different pay cycles and approval processes.

Motor-mechanic apprentices need to be identified correctly rather than treated as ordinary adult minimum-wage employees by default. The WRC excludes a craft apprentice within the relevant industrial training legislation from the National Minimum Wage Act, while the official Motor Mechanics Level 6 apprenticeship information explains that on-the-job salary is agreed between the employer and the apprentice.

That is different from construction, where a Sectoral Employment Order sets specific apprentice rates. A dealership should not copy another sector’s apprentice wage scale into motor-trade payroll simply because both roles are craft apprenticeships.

Expenses & reporting

Expenses and Enhanced Reporting Requirements

Dealerships often reimburse mileage, travel and subsistence or provide staff benefits such as vouchers. The tax treatment comes first. Where a payment or benefit is within the current Enhanced Reporting Requirements and is provided without tax deduction, the report is made to Revenue on or before the payment or provision date.

The reportable ERR categories are not a general list of every motor-trade expense. They currently cover specified travel and subsistence payments, the remote-working daily allowance and qualifying benefits under the Small Benefit Exemption, so our Enhanced Reporting Requirements guide explains how those categories and timing rules fit into the payroll workflow.

Keep the two reporting processes separate

Company-car BIK is handled through payroll as taxable notional pay rather than treated as an ERR item. Keeping those two reporting processes separate avoids double-reporting or applying the wrong tax treatment.

Pensions & directors

MyFutureFund administration for motor-trade employees

MyFutureFund adds another payroll notification process for employees who are enrolled. NAERSA identifies and enrols eligible employees using Revenue payroll data and issues the Automatic Enrolment Payroll Notification (AEPN). The employer and payroll process then follow that notification rather than deciding eligibility locally.

Dealerships with a mix of monthly sales staff, weekly technicians and apprentices can therefore have different MyFutureFund positions across the same workforce. Our MyFutureFund employer guide covers the enrolment workflow, AEPNs, contribution processing and the situations where an employee’s position can change.

MyFutureFund employer guide →

dealership

Directors in a dealership payroll

Owner-directors are still part of payroll when remuneration is paid, but their PRSI position can differ from that of ordinary employees. A director who owns or controls 50% or more of a company, directly or indirectly, falls within the Class S proprietary-director rule, while cases below that level can require a fact-specific PRSI classification.

If a dealership has working directors, company cars or director benefits, the Director Payroll in Ireland guide explains the separate PRSI, PAYE, BIK and self-assessment issues without treating every director as if they had the same status.

Each payroll

What we need from you before each payroll

The payroll run is only as accurate as the information available before the agreed cut-off. For a motor business, the recurring input list usually includes:

We agree the cut-off and approval process during onboarding so commission reports, workshop hours and vehicle changes arrive before payroll is finalised rather than being corrected after pay day whenever possible.

Switching provider

Switching an existing dealership or garage payroll

You do not need to wait until January to move payroll provider. A mid-year transition can work cleanly if the year-to-date figures, Revenue records and motor-trade BIK setup are reconciled before the first live run.

If you are considering a move, the wider payroll services overview explains how our ongoing payroll process is structured before we map it to the specific needs of your dealership or garage.

Outsourcing payroll does not transfer the employer's legal responsibility

A managed payroll service can take the recurring calculations, reporting and administration off your internal team. However, the employer remains responsible for ensuring its payroll system complies with tax law even when a payroll company is used.

In practice, we process payroll from the information and approvals you provide, apply the relevant Revenue instructions and complete the agreed payroll reporting. Your business remains responsible for accurate underlying employment, pay, commission, vehicle-use and expense information and for wider employer obligations outside the payroll service.

What goes wrong

Common motor trade payroll errors

Treating every demonstrator as a fixed company car

Without checking whether Revenue’s motor-industry simplification arrangement applies.

Assuming "shared access" means pool car

Without checking the full Revenue conditions reserved use, incidental private use, and overnight location all matter.

Treating premiums as reckonable minimum-wage pay

Overtime and weekend premiums aren’t reckonable when testing average hourly rate.

Applying construction apprentice rates to motor apprentices

Motor-mechanic apprentice pay is agreed between employer and apprentice, not set by an SEO.

Using the arrangement for exclusive-use vehicles

Where an employee actually has one specific vehicle for a predictable period exceeding one month.

Failing to update BIK when the vehicle changes

Vehicle, private-use position or business mileage changes need to reach payroll promptly.

Clawing back commission without checking the basis

The contractual and Payment of Wages basis for the deduction needs to be confirmed first.

Mixing up BIK and ERR reporting

Company-car BIK isn’t an ERR item and qualifying tax-free benefits still need their own ERR report.

Frequently asked questions

Common questions about motor trade

Does Revenue have special BIK rules for motor dealers?

Yes. Revenue has a simplification arrangement for qualifying employees and employers in the motor industry where employees frequently change employer-provided vehicles. It uses agreed average OMV figures rather than automatically using the actual OMV of every car.

How is BIK calculated when a salesperson changes demonstrator cars regularly?

Under the motor-industry arrangement, the average OMV is based on the highest value of the vehicles the employee normally drives and the relevant Revenue band. Occasional use of a vehicle in a higher or lower bracket does not by itself change the figure.

What if an employee keeps the same demonstrator for more than a month?

Revenue states that the motor-industry arrangement does not apply where an employee has exclusive use of a specific vehicle for a predictable period exceeding one month. The calculation should then use the actual OMV.

Can a demonstrator be a tax-free pool car?

It can, but only where the Revenue pool-car conditions are genuinely met. The car must be used by more than one employee, not ordinarily reserved for one person, private use must be incidental and it must not normally be kept overnight at or near an employee’s home.

What happens if private use of demonstrators has not been taxed?

Revenue states that if an audit or compliance intervention finds that PAYE was not operated on employees’ private use of cars, the motor-industry special arrangement will not apply and the full OMV will be used.

Does sales commission count towards the National Minimum Wage?

Commission can be reckonable pay for National Minimum Wage purposes. Overtime, public-holiday, Saturday, Sunday and unsocial-hours premiums are not reckonable components for the minimum-wage calculation.

Can a dealership deduct cancelled-sale commission from a later payslip?

Only where there is a lawful basis for the deduction. The Payment of Wages rules allow certain deductions required by law, authorised by the contract or agreed in writing in advance, with additional restrictions for some types of deduction. The payroll correction should follow the legal basis rather than create it.

Are motor-mechanic apprentices entitled to the standard adult minimum wage?

A registered craft apprentice within the relevant industrial training legislation is excluded from the National Minimum Wage Act. The official Motor Mechanics apprenticeship information states that the on-the-job salary is agreed between the employer and apprentice.

Can technicians and sales staff be paid on different payroll cycles?

Yes. A dealership can run weekly payroll for workshop employees and monthly payroll for sales, management or administration staff. The key is to maintain clear cut-offs, approvals, RPN retrieval and Revenue submissions for each pay date.

Is company-car BIK reported under ERR?

No. Taxable company-car BIK is processed through payroll as notional pay. ERR applies to specified untaxed expenses and benefits, such as reportable travel and subsistence, the remote-working daily allowance and qualifying small benefits.

Who decides whether a motor-trade employee is enrolled in MyFutureFund?

NAERSA identifies and enrols eligible employees using Revenue payroll data. Payroll then follows the AEPN issued for the employee rather than deciding eligibility locally.

How much does payroll cost for a motor dealership or garage?

Our standard monthly pricing is €30 per employee for 1 to 9 employees, €25 per employee for 10 to 20 employees and a custom quote for 21 or more. Pay frequency and the agreed service scope can affect the overall cost.

Disclaimer: This page provides general information about Irish payroll and motor-trade payroll administration. It is not legal or individual tax advice. BIK treatment, wage deductions, PRSI classification and other obligations can depend on the facts of the employment and vehicle use. Employers remain responsible for their statutory obligations and should use current Revenue, WRC and other official guidance where a specific case requires confirmation.