The Employers’ Guide to PAYE

Revenue eBrief No. 158/19

Tax and Duty Manual Part 42-04-35A ‘The Employers’ Guide to PAYE’ has been updated to provide further clarification and guidance on the following:

  • the composition of Gross Pay
  • the use of the Revenue Payrol Notification (RPN)
  • the Employers obligations to commence employments.

Employers are again reminded of their obligation to provide accurate information when making a payroll submission to Revenue. Most employers are submitting the correct payroll information, but some recurring issues have been identified. These are outlined in Chapter 19, paragraph 19.2 of the Manual. Revenue has established a team to monitor submissions and may contact employers to assist them in addressing any identified issues. Employers should contact the National Employer Helpline at 01-7383638 for assistance.

Employers are also requested to ensure their contact information is correct by visiting ROS and updating profile details as appropriate.


The terms ‘gross pay’, ‘taxable pay’, ‘pay for Universal Social Charge (USC)’ and ‘employee pay for PRSI purposes’ as used in this Guide have the following meanings:

Gross Pay is the employee’s total pay of any kind before any deductions are made by the employer. It includes all notional pay and share based remuneration and is the amount of pay before any pension contributions or salary sacrifice deductions are made. It includes all relevant pay types as outlined in paragraph 3.4 and should be fully reported to Revenue by employers.

3.4.8 Wages payments in advance or on account

Payments in advance or on account (including drawings in advance or on account of a director’s remuneration and payments to or on behalf of a director in advance of thevoting of remuneration) are pay for PAYE purposes. These payments are taxed as income of theincome tax week or month in which they are paid and are subject to the operation of PAYEfor that week or month. The employer must use the latest Revenue Payroll Notification (RPN) to calculate the statutory deductions and a payroll submission must be made to Revenue each time an advance payment is made.

Commencing an employee

Chapter 15 outlines the procedures to be followed when commencing anemployee.