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Home / Tolley's Global Mobility: Employment Taxes (Europe) /Republic of Ireland /1. Payroll basics / 1.1 Introduction: overview of the domestic payroll system
Commentary

1.1 Introduction: overview of the domestic payroll system

Republic of Ireland

Contributed by:

Mairéad Hennessy, Owner at Taxkey, www.taxkey.ie.

1.1ÌýÌýÌýÌý Introduction: overview of the domestic payroll system

Payroll administration in Ireland involves a variety of employer obligations, including tax and social security payments, which come with their own variety of detailed rules and regulations. Employers must withhold tax from employees' paychecks each pay period, and must report those deductions to the Office of the Revenue Commissioners.

Income tax is charged at a progressive rate, from 20–40%.

The Irish payroll process must also account for social security contributions from both employer and employee, collectively known in Ireland as Pay Related Social Insurance (PRSI). PRSI payments cover a range of social welfare benefits, and are generally determined by income level. The Universal Social Charge (USC), implemented in 2011, represents a further payroll consideration and

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