Payroll for Employers – What You Should Know

Proper management of payroll is a fundamental aspect of any business. Not only does an employer have a responsibility to their employees to ensure that wages and salaries are paid in compliance with the relevant legislation and expectations of their employees, they also have a responsibility to their business to ensure that this critical function is managed to the best possible outcome and highest standards.

Payroll mistakes can be costly. Incorrect PRSI placement of employees and directors can be a significant mistake as the rate of employers PRSI for Class A employees is 10.75% and the rate that may be applicable to certain directors under the S Class of PRSI is 4%. Depending on the circumstances, directors can either be employees paying PRSI Class A insurance or self-employed under a contract paying PRSI at Class S.

Other mistakes include failing to keep proper PAYE records which can incur a fine of €4,000 and failing to comply with PAYE regulations also carries a €4,000 fine.

Where an employer is obliged to maintain a Register of Employees but fails to do so the employer is liable to a fine of €4,000 and, where the employer is a company, the company secretary is also liable to a fine of €3,000.

So, for the benefit of the business and its employees it is crucial that payroll is given the diligent attention that this vital function demands.

OPTiM Payroll offers a complete outsourced payroll solution providing better payroll cost information at a very affordable fee.

For our FREE eBook ‘A Guide to Irish Payroll’ visit us at

Outsourced Payroll Management client set-up fee waived for SBC members. Set-up charge normally €500 plus vat.

For SBC members no set-up charge subject to a subject maximum one day of conversion/programming time. Additional days for client accounts requiring more than one day’s set-up will be charged at the normal rate.




No comments made yet. Be the first to submit a comment
Already Registered? Login Here
Monday, 23 September 2019
If you'd like to register, please fill in the username, password and name fields.

Member Login

Business Insights & Tips


Jill Holtz
2109 Points
Tena Glaser
1394 Points
Michael Lane
802 Points
Ron Immink
732 Points
Fionan Murray
721 Points
View Leaderboard