Ireland is an island in the North Atlantic Ocean off of Great Britain. The northern portion, called Northern Ireland, is part of the United Kingdom. Its location makes it an excellent place to expand and establish a new branch. However, strong worker protections and complicated compensation and benefits laws can prove challenging to hire employees and start payroll. If you need help setting up your Ireland payroll, Globalization Partners can help.
Taxation Rules in Ireland
Employers have various tax obligations necessary for compliance. For example, you are legally obligated to tell employees about any pension or personal retirement savings account (PRSA) plans your company provides. If you do not have a pension plan, employees must have access to a PRSA.
Both employers and employees pay into Ireland’s Social Insurance Fund — called Pay Related Social Insurance (PRSI) — as their social insurance contribution. Employers contribute 8.5% on all incomes up to 356 euro per week or 10.75% on incomes exceeding 356 euro per week. Ireland uses a Pay As You Earn (PAYE) system for employee taxes.
Ireland Payroll Options for Companies
As every business is different, so are your payroll options. The three main ways to set up your Ireland payroll include:
- Internal: Larger companies committed to their subsidiary in Ireland may opt to run their payroll out of their branch in Ireland. However, you will need to hire the necessary staff and make sure you have a complete understanding of the country’s employment laws.
- Ireland payroll outsourcing: On the other hand, some companies may not have the time, money, or resources to choose internal payroll. You can outsource your payroll to a local company in Ireland, but you will still be compliant for any mistakes.
- Global PEO: You can also work with a global PEO such as Globalization Partners. We will process your payroll and act as the Employer of Record, so you won’t have to worry about compliance.
How to Set Up a Payroll in Ireland
Before you set up payroll in Ireland, you’ll have to establish a subsidiary. Handling payroll yourself could take six to nine months and often requires more than six figures of registered capital. You’ll need a significant amount of time and money to set up your payroll fully.
Instead, Ireland payroll outsourcing with Globalization Partners can help you start working in a matter of days. We’ll act as your subsidiary and hire employees on your behalf.
Ireland has strict entitlement and termination terms based on an employee’s length of service. Probationary periods ranging from three to six months are also common. It’s best to outline all entitlement and termination terms in a written employment contract before the employee starts working for your company.
Payroll Processing Company in Ireland
If you need an Ireland payroll processing company, choose Globalization Partners. We’re more than just a payroll outsourcing option. We take the risk of compliance for you. Contact us today to learn more about our services.