# Payroll for Your First Irish Employee | ARAN Accounting

> Just incorporated and about to run payroll in Ireland for the first time? PAYE Modernisation requires same-day reporting, not monthly. Get set up from day one.

URL: https://aran-accounting.ie/en/payroll-for-your-first-irish-employee
Language: en
Published: 2026-08-24
Last updated: 2026-08-24
Author: Rafael Arantes - Registered Tax Agent (TAIN), founder of ARAN Accounting

## Summary

You just incorporated, and now you are about to pay your first employee, or yourself as director. PAYE Modernisation requires that payment to be reported to Revenue on or before payday, not at month end. We set it up so your first run is already correct, not the one that gets flagged.

- PAYE Modernisation requires a payroll submission to Revenue on or before every pay date, not monthly and not after the fact.
- This applies from your very first employee, and it applies to your own salary if you pay yourself as director.
- You must be registered as an employer before that first payment, not after it.

## Key facts

- PAYE Modernisation real-time reporting requirement: In effect since 1 January 2019 (Revenue: PAYE reporting and employer registration)
- When you must register as an employer with Revenue: Before your first payment of wages or salary, however small (Revenue: Registration of employers for PAYE purposes)
- How directors are treated under PAYE: Payments to directors are reported to Revenue on or before the pay date, the same as for any employee (Revenue: Directors, payments to employees)

## Frequently asked questions

Q: Do I need to run payroll if I'm the only employee, as director?
A: Yes. Revenue treats a director's pay the same as any employee's under PAYE, reported on or before each pay date. If you're a proprietary director, you also file a personal Form 11 every year, even when all your income is already taxed through payroll.

Q: What happens if I miss a payroll submission?
A: Revenue expects to see your payroll data in real time, not at month end. A missed submission is a visible compliance gap, not something that quietly disappears. We recommend fixing it immediately and adjusting your routine so it does not repeat.

Q: When exactly do I need to register as an employer?
A: Before your first payment of wages or salary to anyone, however small, including yourself as director. Registering after that first payday is treated as late, so plan this before you agree a start date or a first paycheck.

Q: Isn't payroll just a monthly thing, like other taxes?
A: No, and that is the mistake we see most often. PAYE Modernisation requires a submission on or before every pay date, weekly, fortnightly, or monthly, not a single filing after the fact like Income Tax or VAT can sometimes allow.

Q: I'm a UK or non-resident founder. Does this still apply to me?
A: Yes. Once your Irish company pays anyone, including you, the same-day reporting rule applies regardless of where you live. We handle the Irish side end to end, so you are not learning PAYE Modernisation from scratch while running a business.

Q: Can you take over payroll if I already made a mistake?
A: Yes. We review what has been submitted so far, correct what needs correcting, get your registration and RPNs in order, and set up a routine so every future pay date is reported correctly and on time.

## Sources

- Revenue: Registration of employers for PAYE purposes: https://www.revenue.ie/en/employing-people/becoming-an-employer-and-ongoing-obligations/registration-of-employers-for-paye-purposes/index.aspx
- Revenue: Directors, payments to employees: https://www.revenue.ie/en/employing-people/becoming-an-employer-and-ongoing-obligations/payments-to-employees/directors.aspx
- Revenue: Revenue Payroll Notifications (RPN): https://www.revenue.ie/en/employing-people/becoming-an-employer-and-ongoing-obligations/revenue-payroll-notifications.aspx
- Revenue: Employing people: https://www.revenue.ie/en/employing-people/index.aspx

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