Understanding Payroll For First Time Business Owners

By Kane Bergin
payroll services

In layman’s terms payroll services involve a list of your employees and break down of their wages that need to be paid over a specific time frame (every second week, every month etc). As part of this information payroll includes the distribution of said wages and tax deductions.

As a new business owner, it’s your responsibility to ensure there is a payroll system in place to track your workers hours and reward them accordingly.

You can either outsource your payroll or have it run in-house. Whichever you choose you need to be able to understand how payroll services works first. Read on for the changes you need to be aware of.

Registering With Revenue

As a first-time business owner, you are required to register your company with Revenue.ie before hiring any future employees.

If your company is represented by a tax agent he or she can submit an online application on your behalf through Revenue Online Service (ROS).

If you wish to send a postal form by hand you can use the following:

  • TR1, if you are a sole trader or partnership
  • TR2, if you are a limited company

The above forms can be found on Revenue.ie. If Revenue has reason to believe you are not registered, they can do so automatically. For more information on how to register you can follow link here.

3 Key Essentials

There are 3 key essential factors you need to keep in mind for all employees when it comes to payroll services.

  1. Employee Information: All employees must give you their full names, addresses and PPS numbers in order for you to include them in payroll.
  2. Holidays and sick days: Annual leave and sick days must be tracked for all employees to ensure they are being payed the correct amount. No overpayment or underpayment will occur with correct tracking.
  3. Taxes: Every employee’s wage will have the required tax deductions. These include PRSI, PAYE and USC. The more hours an employee works the more tax will be deducted from their pay.

PAYE Modernisation

Since January 1st of this year, a new system was introduced to change the Irish payroll system since its execution in 1960. PAYE Modernisation now means all employers must submit their employees payroll data in real time every pay period.

PAYE Modernisation eliminates the need for employers to file P30, P45, P46, P60 and P35 returns as this type of information will now be reported in real time.

Payroll Services That Matter

We hope this information has provided you with some insight. Kane Bergin offer a reliable and time efficient payroll service to save you from doing the hard work yourself.

Kane Bergin is fully up to date with PAYE Modernisation so you’ll have the peace of mind your payroll system will be compliant. Additionally, you will not have to keep up with Irish tax legislation if you outsource your payroll system to us.

There are many benefits to trusting Kane Bergin with your payroll services but the best way of really knowing is to pick up the phone and call us on (01) 969 6306.