For most Irish business owners, payroll is one of those things that sits in an uncomfortable middle ground: too important to get wrong, too time-consuming to manage well, and too technical to hand off without feeling nervous about it.
Outsourcing payroll should make that anxiety go away — but it tends to raise a different kind of question instead. What exactly happens after you sign up? Who does what? What do you still have to do yourself? What does your provider actually deal with, and what lands back on your desk?
This guide answers those questions in plain terms. It walks through the full process from first contact to the ongoing monthly cycle, so you know exactly what to expect before you make a decision.
What “Outsourced Payroll” Actually Means
When you outsource payroll in Ireland, you remain the employer. You are still legally responsible for paying your employees correctly and on time, and for meeting Revenue’s real-time reporting obligations. What changes is who does the work.
A payroll outsourcing provider sometimes called a payroll bureau takes on the calculation, submission, and reporting on your behalf. They calculate gross-to-net pay for each employee, apply the correct PAYE, USC, and PRSI deductions based on Revenue’s Payroll Notifications, submit a payroll submission to Revenue on or before each pay date via ROS, process any Benefit in Kind, handle Enhanced Reporting Requirements (ERR) submissions, and issue payslips.
You supply the input. They do the processing. Revenue gets the submission. Your employees get paid.
Important distinction: Outsourcing payroll is not the same as using an Employer of Record (EOR). With payroll outsourcing, you remain the employer in every legal sense you hire, manage, and are responsible for your staff. The provider manages the payroll mechanics on your behalf. An EOR is a different model where the provider becomes the legal employer of your staff, typically used by foreign companies entering Ireland without their own entity.
Step 1 — Onboarding: What We Need from You
Onboarding is the most intensive phase of outsourcing, and it is worth setting clear expectations about what it involves. Done properly, it takes a small amount of time upfront and prevents a larger amount of corrective work later.
Your employer registration details
We need your Employer PAYE/PRSI registration details — the registration you completed with Revenue when you first took on an employee or began paying a director. If you are a new business that has not yet registered as an employer with Revenue, we can guide you through that process before anything else happens.
Employee data
For each employee, we need:
- Full name, address, and date of birth
- PPS number where available — Revenue uses this to link each employee to their tax record and issue Payroll Notifications. Where a PPS number is not yet available, payroll can still proceed using the employee’s name, address, date of birth and a consistent Employer Reference Number, with Emergency Tax operated until the PPS number is confirmed.
- Start date and job title
- Salary or hourly rate, and contracted hours where relevant
- Pay frequency — monthly, fortnightly, or weekly
- Any existing pension deductions, salary sacrifice arrangements, or other non-statutory deductions
- Any BIK (Benefit in Kind) in place — company car, health insurance, or similar
Existing payroll records (for transfers)
If you are moving from another provider or from in-house payroll, we will also need year-to-date payroll data for each employee their cumulative pay and deductions from the start of the tax year. This ensures continuity and that Revenue’s records match ours from the point of transfer.
Switching from another provider?: Payroll migration is more straightforward than many employers expect. The key requirement is accurate year-to-date data for each employee. We handle the technical side of the switch, including updating Revenue of the change in payroll agent. The critical rule is not to allow a gap: the incoming provider must have everything they need before the next pay date.
Step 2 — How We Connect to Your Revenue Account
Before we can process payroll submissions on your behalf, we need to be authorised to access your Employer PAYE/PRSI taxhead in Revenue’s systems. Revenue uses an agent e-linking process for this.
In practice, we send you a Revenue agent-link request for your Employer PAYE/PRSI taxhead. You approve this through ROS or Revenue myAccount. Once approved, we can submit payroll submissions and retrieve Payroll Notifications on your behalf.
Scope of this authorisation: The agent link we establish is specific to your Employer PAYE/PRSI taxhead — it covers the payroll services we provide. It does not automatically authorise us to act for your VAT, Corporation Tax, Income Tax, annual accounts, or any other tax affairs. Those remain with your accountant or tax adviser unless separately and explicitly agreed.
This scoped authorisation is important to understand. Payroll Company manages payroll. Your broader tax affairs remain with whoever currently handles them.
Step 3 — Your First Payrun
For your first payrun with us, you provide the payroll input — the data that tells us what to pay. For most employers, this is straightforward: a headcount with salaries, any changes since last month (new starters, leavers, salary changes, bonuses, overtime), and anything unusual.
What you send us
The simplest instruction is a change list: “everyone the same as last month, except these people.” For most payrolls — particularly monthly salaried staff the input is brief. For hourly or variable-pay employees, you send us the hours worked or the variable amounts for the period.
We agree a cut-off date for input with you typically a few days before payday. Input received after the cut-off is processed the following month unless it is urgent, in which case we can discuss a supplementary run.
What we do with it
We retrieve the latest Payroll Notification for every employee from Revenue before calculating anything. We then calculate gross-to-net pay: gross earnings, minus PAYE (based on the Payroll Notification), USC, and employee PRSI giving the net pay that goes to the employee’s bank. We also calculate employer PRSI. We apply any BIK, pension deductions, or other adjustments. Where NAERSA has issued an Automatic Enrolment Payroll Notification (AEPN) for any eligible employee, we apply My Future Fund deductions and make the relevant payroll submission to NAERSA.
What we submit and when
On or before your pay date, we make the payroll submission to Revenue via ROS. This tells Revenue what every employee earned and what was deducted in that period. It must be submitted on or before payday — this is a legal requirement under PAYE Modernisation.
We also submit ERR reports for any qualifying payments in that period — travel and subsistence, Small Benefit Exemption items, or remote working allowances — on or before the date those payments are made.
What you receive
- Digital payslips for each employee
- A payroll summary showing total employer cost for the month
- The PAYE/PRSI/USC liability amount due to Revenue for the period
Step 4 — The Ongoing Monthly Cycle
Once you are up and running, payroll settles into a predictable rhythm. Here is what the monthly cycle looks like:
| Timing | What happens |
|---|---|
| Before pay date (agreed cut-off) | You send us the payroll input for the month — changes, new starters, leavers, overtime, bonuses, BIK updates. |
| On or before pay date | We make the payroll submission to Revenue via ROS and release payslips to employees. |
| 5th of following month | Revenue makes your monthly statement available in ROS. It shows the PAYE/USC/PRSI liability for the period |
| 14th of following month | Deadline to review and accept (or correct) the monthly statement. If no action is taken, Revenue deems it the statutory return on this date. Non-ROS payment deadline. |
| 23rd of following month | Extended deadline for employers filing and paying through ROS. Late payment attracts interest from the original due date. |
| Quarterly option | Employers whose annual Income Tax, PRSI and USC payments are €28,800 or less may apply for quarterly remittance. Revenue also requires that the employer has been registered for at least 12 months and is up to date with all returns and payments. Real-time payroll submissions still happen every payrun. |
We notify you of the liability amount in advance so you can arrange payment before the deadline. The payment goes directly from you to Revenue — not through us. This is important: we manage the submissions and reporting; you manage the Revenue payment.
Step 5 — What Happens When Something Changes Mid-Month
New employee starts
Tell us before their first pay date. We need their details — name, address, date of birth, PPS number (where available), salary, bank details if applicable, and start date — in time to retrieve their Payroll Notification and include them in the payrun. If the employee is starting their very first job in Ireland, they must register the employment through their own Revenue myAccount before we can receive a Payroll Notification for them.
Employee leaves
Notify us of the leaving date and their final pay entitlements. We calculate outstanding pay, process the final payslip, and update Revenue. Where a lump-sum termination payment is involved — such as a redundancy payment the tax treatment may need to be discussed in advance as it depends on the nature of the payment.
Salary changes, bonuses, and one-off payments
Include in your input for the month the change takes effect. Bonuses and one-off payments are included in the payrun for the month they are paid and are subject to PAYE, USC, and PRSI in the normal way.
BIK changes
If a BIK value changes — a new company car, a change in health insurance premium, a new benefit added — let us know before the payrun so we can update the taxable gross. BIK is a live figure that should reflect current arrangements.
Your Responsibilities vs Ours
| Your responsibilities | Our responsibilities |
|---|---|
| Notifying us of starters, leavers, salary changes, and BIK changes before the cut-off each month. | Retrieving the latest Payroll Notification for each employee from Revenue before every payrun.(PREM |
| Providing accurate payroll input by the agreed cut-off date. | Calculating gross-to-net pay correctly for every employee, including PAYE, USC, PRSI, and My Future Fund deductions where an AEPN is in place. |
| Paying the Revenue liability by the 23rd of the following month via ROS (or 14th if not on ROS). | Making the payroll submission to Revenue on or before payday, every payrun. |
| Providing each employee’s PPS number where available; supplying name, address and DOB where a PPS number is pending. | Submitting ERR reports for qualifying payments on or before the date of payment. |
| Registering on the MyFutureFund Employer Portal, completing your profile, and setting up a payment method for contributions | Retrieving and applying AEPNs and making payroll submissions to NAERSA for enrolled employees where included in the service. |
| Making decisions about pay, employment terms, and benefits — these remain yours as the employer. | Issuing payslips and providing the monthly payroll summary and Revenue liability figure. |
How We Protect Your Employees’ Data
Payroll involves some of the most sensitive personal data your business handles: employee PPS numbers, salaries, addresses, and bank details. When you engage Payroll Company to process payroll on your behalf, Irish and EU data-protection law sets out clear obligations for both parties.
Controller and processor
Under GDPR, you the employer are the data controller. You determine the purpose and manner in which employee personal data is processed. Payroll Company acts as a data processor: we process employee data strictly on your instructions and for the purposes of providing the payroll service. This distinction matters because it means ultimate accountability for how data is used remains with you as the employer.
Data-processing agreement
Article 28 of GDPR requires that every arrangement between a controller and a processor is governed by a written data-processing agreement (DPA). This agreement sets out what data is processed, for what purpose, the security measures in place, and each party’s obligations. We provide a standard DPA as part of our engagement documentation.
What we do with your data
Employee data you provide to us is used solely for the purpose of processing and submitting payroll on your behalf. It is not shared with third parties except where required to fulfil the payroll service — such as Revenue submissions via ROS, or NAERSA submissions for My Future Fund. We do not use payroll data for marketing or any purpose outside the service.
Secure data transfer
All payroll data should be transferred to us through a secure channel — encrypted email or a secure client portal, not standard unencrypted email. We will provide guidance on our preferred secure transfer method during onboarding. PPS numbers and salary data in particular should never be sent over unsecured channels.
Bank details: a data minimisation note
We collect employees’ bank details only where we generate the payment file used to pay employees. If you process wage payments directly from your own bank, we do not need and should not hold employee bank account details. We will confirm during onboarding whether bank details are required for your specific payroll setup.
The Irish Data Protection Commission provides guidance on employment data and processor relationships at dataprotection.ie.
What Our Service Does Not Cover
A payroll provider processes payroll. There are related areas that sometimes get assumed to be included:
- Tax services outside payroll: Our payroll authority covers your Employer PAYE/PRSI taxhead. It does not extend to VAT, Corporation Tax, Income Tax returns, annual accounts, or other tax matters unless these are separately included in your engagement. Those remain with your accountant or tax adviser.
- HR and employment law advice: Questions about dismissal, disciplinary processes, or employment contract terms should go to an employment solicitor or the WRC.
- MyFutureFund eligibility determinations: NAERSA identifies eligible employees and issues AEPNs. We apply those instructions through payroll we do not determine who is eligible.
- Gender pay gap reporting and other HR compliance obligations: These are employment-law obligations that remain with you as the employer.
- Making the Revenue payment: We calculate the liability and notify you. You make the payment directly to Revenue. We do not hold client funds or make payments on your behalf.
Who Regulates What in Irish Payroll?
| Body | What they handle | Key resource | What they do not handle |
|---|---|---|---|
| Revenue | YPAYE, USC, payroll submissions, ERR, RPNs, employer registration (PREM | revenue.ie(PREM | PRSI policy, employment rights, pension auto-enrolmen(PREM |
| DSP | PRSI policy and rates, social insurance benefits | gov.ie | PAYE calculations, payroll submissions |
| NAERSA | My Future Fund — eligibility, enrolment, AEPNs, opt-outs | myfuturefund.ie | PAYE/PRSI, general payroll processing |
| WRC | Employment rights, payslip compliance, minimum wage, terms of employment | workplacerelations.ie | Tax deductions, Revenue submissions |
| CRO | Company registration, director appointments, company law filings | cro.ie | Payroll tax, PRSI classification — CRO status does not determine PRSI class |
Frequently Asked Questions
Payroll software gives you a tool to process payroll yourself — you still input the data, make the calculations, and submit to Revenue. With outsourced payroll, you supply the input and a qualified team does everything else. Outsourcing removes the knowledge and time requirement from your side.
For most employers, onboarding takes a few working days — the main variable is how quickly you can provide complete employee data. For mid-year transfers, we also need year-to-date figures for each employee. Everything must be in place before your next pay date.
You supply payroll input before each agreed cut-off date (starters, leavers, changes, variable pay), register on the MyFutureFund Employer Portal and set up a contribution payment method, and pay the Revenue liability by the 23rd of each following month via ROS. All payroll calculations, Revenue submissions, ERR filings, and payslip production are handled by us.
Yes. Mid-year transfers require accurate year-to-date payroll data for every employee so the new provider can continue from the correct cumulative position. The critical rule is no gap between providers. We handle the Revenue agent-link setup and the notification of the change.
You do. We calculate the PAYE/USC/PRSI liability and notify you of the amount. You make the payment directly to Revenue via ROS by the 23rd of the following month (or 14th if paying by non-ROS means). We do not hold or transfer client funds.
ERR (Enhanced Reporting Requirements) is the real-time reporting of certain non-taxable payments to Revenue — travel and subsistence, Small Benefit Exemption items, and the remote working daily allowance. Submissions must be made on or before the date of payment. Yes, this is part of what we manage, as long as you notify us of qualifying payments as part of your payroll input.
You remain the employer and legally responsible for compliance. Where an error occurs because of incorrect processing on our part, we correct it promptly at no additional cost. Where an error occurs because of incorrect or late input from your side, the correction is our responsibility to process but the underlying liability — including any interest — remains yours as the employer.
GDPR requires a written Article 28 data-processing agreement between you as the data controller and us as data processor. We provide this as part of our standard engagement documentation. It sets out what data is processed, for what purpose, the security measures in place, and each party’s obligations.
