Establishing and managing a payroll in Ireland
Ireland is one of the most popular countries in the world for foreign business expansion, in part due to its favorable business climate, EU membership, and highly developed economy.
If your organization is interested in expanding into Ireland then an important phase of the process will probably be establishing and maintaining a payroll to hire employees locally. This process can be quite complex, and you may experience delays of weeks or even months dealing with the administration and compliance work.
At Horizons, we specialize in helping businesses expand internationally, including into Ireland. Our payroll setup and management services are designed specifically to give clients a faster, more reliable route of entry into Irish employment and expansion, ensuring you operate in full compliance with local regulations, whether or not you have an entity in the country.
Why choose the Horizons payroll solution?
If you have an entity
For organizations that have already established an official entity in Ireland, we offer full payroll outsourcing. Our expert team will set up and manage your payroll, then take care of all the associated administration, HR, and compliance work.
This outsourcing service is ideally suited to large organizations and those looking at Ireland with a long-term view.
If you don’t have an entity
If you have not registered an official entity in Ireland, we can provide our more comprehensive payroll service, offering our Irish subsidiary to work as your employer of record in the country. Our Ireland payroll experts can also manage your HR, contracts, legal compliance, and more.
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Ireland payroll guide
Taxation and withholdings in Ireland
Most employees and employers in Ireland need to pay into the country’s social security scheme (PRSI). Contributions are 4% of salary for employees earning over a certain level, and 8.5% to 10.75% from employers depending on income level.
There is also a payment called the Universal Social Charge (USC), which employees must pay at a rate of between 1% and 8% depending on salary.
Income tax in Ireland ranges from 20% to 40%, depending on income level.
Corporate tax in Ireland is usually 12.5%, but alternative rates apply to some different types of businesses and income.
Entitlements and terminations rules in Ireland
Employees in Ireland are generally entitled to notice of termination. The mandatory notice period ranges from one week to eight weeks depending on the employee’s length of service.
When an employee is made redundant, they are usually entitled to a severance payment of one week of pay plus two weeks for every year of service with their employer.
How to establish an Ireland payroll
If you want to hire in Ireland and set up an in-country payroll, you may need to establish an Ireland-based entity. However, this process can be lengthy and confusing, potentially leading to significant delays and negatively affecting revenues, so it’s always important to get expert advice.
Alternatively, you can outsource your payroll setup and management to Horizons. We can provide our Irish subsidiary to act as employer of record for your new hires, so you don’t even need to have a registered entity in Ireland. Additionally, we can establish your payroll and handle all the ongoing administration and compliance work, giving you the freedom to expand into the country more efficiently.
Manage payroll in Ireland
Whether it’s EOR service or just payroll management, Horizons’ employment experts can help you get started in 24h.