Budget Webinar

Payroll Year End

Payroll Year End is a particularly busy time for payroll professionals. With 2022 coming to an end, and given the multitude of upcoming developments that are/will affect Irish payrolls, we thought that we’d put together some tips and considerations to help you prepare for payroll year end.

Employer Tax Credit Certificates (RPNs) 2023

2023 RPNs are being / will be issued to employers for all of their employees advising thresholds and rates that are applicable from Jan 1st 2023. Employers, where possible, should not run 2023 payrolls until they receive 2023 RPNs – if 2023 RPNs are not received on time to run your payroll then you should continue to use your 2022 RPNs for tax deductions and contact Revenue.

New Hires in 2022

All employees must be registered with Revenue – keep in mind that if the employee does not register their job with Revenue then the employer must do so. So, if you didn’t register new hires with Revenue during the year and still haven’t received an employee’s RPN etc., then consider reminding the employee to register their job with Revenue or do so on their behalf.

Taxation of Illness Benefit and Occupational Injury Benefit

Taxation of Illness Benefit and Occupational Injury Benefit will change from Jan 1st 2023. Employers will no longer be required to include these payments with taxable pay as Revenue will be making the necessary incorporations into the employee’s tax credit certificates. For more information, click here.

Once commenced the scheme will be rolled out over four years as follows;

  • 2023 – 3 days
  • 2024 – 5 days
  • 2025 – 7 days
  • 2026 – 10 days (full operation)

A rate of payment for statutory sick pay will be set at 70% of usual daily earnings capped at €110 per day.

P35 Considerations

  • Since 1 January 2018 employers no longer need to include IB payments as part of the employee’s pay.
  • There is also no need for the employer to include details of IB on Forms P45, P60 or P35L after 31 December 2017.

Universal Social Charge (USC)

In 2022, if your income is €13,000 or less you pay no Universal Social Charge (USC). Once your income is over this limit, you pay the relevant rate of USC on all of your income. For example, if you have income of €13,000 you will pay no USC. If you have income of €13,001 you will pay 0.5% on income up to €12,012 and 2% on income between €12,012 and €13,001. From the 1st of January USC will apply at the following rates for those earning in excess of €13,000

Standard rate of USC (2022)
Rate Income band
0.5% Up to €12,012
2% From €12,012.01 to €22,920
 4.5% From €22,920 to €70,044
8% From €70,044.01 and over
11% Self-employed income over €100,000


Reduced rate of USC (2022)
Rate Income band
0.5% Income up to €12,012
2% All income over €12,012


Reduced rates of USC apply to:

  • People aged 70 or over whose total income for the year is €60,000 or less
  • Medical card holders aged under 70 whose total income for the year is €60,000 or less


For more Payroll Year End ad Revenue Updates read:

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