Income Tax

Employers deduct tax on income earned from employment directly from employees’ salaries via the PAYE system

What employee’s pay in tax depends on their salary and personal circumstances

A range of income tax relief options may be available to employees to minimise their tax liability The taxpayer should apply for the tax credits and reliefs they may be able to benefit from to offset their tax liability via Revenue Employees can access their personal online PAYE account via the Revenue website once they are registered

Once Revenue has been informed, then Revenue will inform the taxpayer’s employer Once the employer has been informed then payroll can be adjusted

Outbooks can act as agent as soon as we’re hired and take over payroll on the behalf of your business

We will make the adjustments and always make sure that your wages bill is kept tightly in check and that all wage receipts and wage slips are run out to the letter

We can advise you or your HR department where and when your employees are paying too much or too little tax

We will immediately alert you to new joiner’s circumstances and any information we require to ensure that your employees’ wage is correctly computed

Tax bands are set from year to year in Ireland The current bands are on the Revenue website and are regularly updated The current tax credits, allowances and reliefs are available on the same page

The income tax bands for the standard tax rate of 20% rose in 2022 (€36,800) but the band rates are dependent on the personal circumstances of the taxpayer

Universal Social Charge

The tax known as the income levy and health contribution was replaced by the universal social charge (USC) in 2011. All employees earning above €13,000 annually must pay USC on their gross income Whatever the taxpayer owes in USC should be deducted at source via PAYE either weekly or monthly depending on the employee’s terms of pay

Most employees in Ireland also have their contributions to the social insurance fund (known as PRSI contributions) automatically deducted from their salary via PAYE The amount owed will vary according to the class of insurance they are paying It is vital that these contributions – which generally determine employees’ and family members eligibility for insurance benefits, including unemployment assistance – are kept up to date.

Health care

Ireland’s health services (e g GP, hospital service, A&E, maternity care, dentists) are generally available to all residents. Certain people will qualify for free health services because of their health condition or social circumstances and will have been issued with a full medical card from the health service executive (HSE). These taxpayers need to notify Revenue of their status for the exemption to apply and be computed by payroll

There are several voluntary private health insurance providers in Ireland that are regulated by the Health Insurance Authority Individuals can purchase their own private health insurance or some employers offer it as an optional subsidized insurance scheme for employees