Ireland Payroll Information

Updated on: 2025/08/04 14:03 (UTC)

Overview

The country of Ireland, officially known as the Republic of Ireland, is a parliamentary democracy that is a member of the European Union. Local government in the Republic of Ireland consists of 31 councils, including 26 county councils, three city councils, and two councils with specifically assigned jurisdiction over a city and county. The Republic of Ireland is located on the island of Ireland and covers more than 80% of the island’s land area, with the remainder of the island’s land area consisting of Northern Ireland on the northeast part of the island. Northern Ireland is a constituent country of the United Kingdom and is a politically distinct entity from the Republic of Ireland despite both being located on the island of Ireland. Ireland is known in the Irish language as Éire.

Ireland’s currency is the euro.

Employers in Ireland are responsible for withholding income taxes, paying and withholding social security contributions and upholding labor laws and other protections for both resident and nonresident employees.

Foreign workers in Ireland can be subject to Irish taxation on both income earned in Ireland and abroad. Social insurance taxes also are levied on nonresident workers, since they qualify for certain workplace benefits.

Irish residents working in the United States are covered by U.S. tax law with possible treaty and work status exclusions applying. Work within the U.S. states and territories is covered by various labor laws.

CURRENCY DETAILS

The currency of Ireland is the euro (€), which Ireland uses because it is part of the euro area, also known as the eurozone, which is a group of countries that adopted the euro as their currency. The internationally recognized three-letter currency code for the euro is EUR, which also is one of the currency’s two commonly used currency symbols. The English plural form of euro officially recognized by the European Commission is the same as its singular form, although in common English parlance the plural form is euros. In Irish, which together with English are the official languages of the Republic of Ireland, the standard plural form of euro also is the same as its singular form.

When an amount of euro is written using the currency symbol € in accordance with the European Commission’s standard placement of the symbol, which is the placement used for the English language, the symbol precedes the numerical value with no space between the numerical value and symbol. The placement of the currency symbol € in Irish is equivalent to the symbol’s placement in English.

When an amount of euro is written using the currency symbol EUR, the symbol precedes or follows the numerical value with a space or no space between the numerical value and symbol.

One hundredth ( ¹ ⁄ ₁₀₀ ) of a euro is referred to in English as a cent and the English plural form of cent officially recognized by the European Commission is the same as its singular form, although in common English parlance the plural form is cents. In Irish, one hundredth of a euro also is referred to as a cent and its standard plural form also is the same as its singular form.

TAXES

Income taxes are withheld at source by employers using a Pay As You Earn (PAYE) system. The Office of the Revenue Commissioners, or simply Revenue, administers the taxes and sets forth employer requirements. In addition, social insurance contributions are required for the Pay Related Social Insurance (PRSI) and the Universal Social Charge (USC) programs.

The Irish tax year begins Jan. 1 and ends Dec. 31.

Note: Starting with 2019, Ireland requires employers to report data regarding payments of income and social taxes using real-time reporting.

Coronavirus (Covid-19) Guidance: Employers participating in Ireland’s Employment Wage Subsidy Scheme (abbreviated as EWSS) are assessed until Feb. 28, 2022, a 0.5% employer PRSI rate on employees who are eligible for a subsidy, but the reduction is calculated by Irish Tax and Customs and subtracted from reported employer PRSI contributions. Further information on the EWSS is available in the Compensation and Benefits section of this primer.

According to European Commission guidance, employees who normally work in one European Union member country and live in another are still considered to be insured by the social insurance system of the normal work country while working at home.

Income Taxes

Coverage: Irish residents are subject to Irish taxes on their worldwide income and gains for the tax year in which they are a resident of Ireland. An individual is considered to be an Irish resident for tax purposes based on the number of days he/she is present in Ireland per year.

Residency is established if:

• an individual spends 183 days or more in Ireland in a single tax year; or
• an individual spends less than 183 days in Ireland in a single tax year, but 280 days or more in Ireland throughout the current and preceding tax years.

Irish citizens working abroad, but retaining their residency in Ireland, are liable for income and social taxation. All wages, including those earned abroad from a foreign employer, are subject to taxation.

Notably, the possession of property in Ireland does not solely qualify an individual for Irish residency.

Rates and Thresholds: Taxpayers are divided into four categories based on their family status. Schedules C, D, E, and F apply to such taxes, with Schedules D and E most relevant to employers, as both refer to income associated with a trade or employment of some type. Taxpayers are subject to taxation on Schedule D income when their income taxes are not already withheld at source by their employers.

Schedule E pertains to income from employment and directly relates to the Pay As You Earn (PAYE) mechanism of wage-related taxation withheld at source by the employer. Incomes are taxed at a rate of 20% up to varying income thresholds based on family status, with remaining income taxed at a rate of 40%. The rate of 20% also is known as the standard rate of tax and the rate of 40% also is known as the higher rate of tax, with the income threshold separating them also known as the standard rate cut-off point. Taxpayer household sizes also determine income tax deduction eligibility.

Effective for 2022, Ireland’s personal income tax rates and tax bands are as follows:

Family Status	Annual Income Threshold for Tax Rate Differentiation (Euro)	Income Tax Rates
Single, widowed, or a surviving civil partner without qualifying children	€36,800	20% for income up to €36,800
Single, widowed, or a surviving civil partner qualifying for single person child carer credit	€40,800	20% for income up to €40,800
Married or in a civil partnership (one spouse or civil partner with income)	€45,800	20% for income up to €45,800
Married or in a civil partnership (both spouses or civil partners with income), standard scenario	€73,600	20% for income up to €73,600

Effective for 2021, unchanged from 2020, Ireland’s personal income tax rates and tax bands were as follows:

Family Status	Annual Income Threshold for Tax Rate Differentiation (Euro)	Income Tax Rates
Single, widowed, or a surviving civil partner without qualifying children	€35,300	20% for income up to €35,300
Single, widowed, or a surviving civil partner qualifying for single person child carer credit	€39,300	20% for income up to €39,300
Married or in a civil partnership (one spouse or civil partner with income)	€44,300	20% for income up to €44,300
Married or in a civil partnership (both spouses or civil partners with income), standard scenario	€70,600	20% for income up to €70,600

The standard-scenario annual income threshold for tax rate differentiation for those with the family status of married or in a civil partnership (both spouses or civil partners with income) is the annual income threshold for tax rate differentiation for the category of married or in a civil partnership (one spouse or civil partner with income) plus the maximum additional rate-band cap in effect for the year. However, if between spouses or civil partners the annual income of the lower-earning spouse or civil partner is lower than the maximum additional rate-band cap in effect for the year, the applicable annual income threshold for tax rate differentiation is the annual income threshold for tax rate differentiation for the category of married or in a civil partnership (one spouse or civil partner with income) plus an amount equal to the income of the lower-earning spouse.

Effective for 2022, the maximum additional rate-band cap is €27,800. Effective for 2021, unchanged from 2020, the maximum additional rate-band cap was €26,300.

Fringe Benefits: Employees who annually earn more than €1,905 are required to pay taxes on fringe benefits. Fringe benefits are quantified and included in the taxable income of employees as follows:

• Provision of employer owned accommodation: employer owned accommodation generally is taxed by adding the employer’s costs towards the accommodation and the estimated annual rental value of the property, or 8% of the market value of the property.
• Provision of leased accommodation: leased accommodation generally is taxed at the cost of rent less any payments made by the employee.
• Provision of furniture: furniture is taxed at 5% of its current market value.
• Provision of cars to employees: cars generally are taxed based on the annual business kilometers driven less any payments made by the employee.
• Provision of vans to employees: cars generally are taxed at 5% of the original market value of the van.
• Provision of loan to employees: employee loans are taxed at the difference between the amount of interest that would have been paid if the loan was charged at the applicable Revenue rates and the amount of interest paid on the loan at the rate provided.
• Other fringe benefits: other fringe benefits are taxed at the higher of the cost of the employer providing the benefit or the value of the benefit less any employee payment towards the benefit.

Registration: Employers must register employees for PAYE, if not previously registered, when average weekly payments exceed €8 for full-time work or €2 for part-time work within nine days of when employment commences. Employers generally must register for PAYE and register their employees for PAYE using the eRegistration facility, which can be accessed through the government’s Revenue Online Service (ROS). Employers that are not required to electronically submit registration documentation may submit a registration notification (Form TR1, TR2 or PREM Reg) to the local Revenue office in the employer’s geographic location.

If an employer fails to register and was required to register, Revenue will register the employer in its stead and will notify the employer within 14 days. If this is done in error, an employer can issue a formal appeal.

All employees must register for tax purposes. To register, applicants must apply for and use a Personal Public Service Number (PPS, also abbreviated as PPSN), which is a unique number used to access welfare benefits. They must use the Jobs and Pensions Service within the government’s myAccount online portal to electronically register the new job.

Taxable Amounts: Employers should calculate income tax on employee salary based on the information supplied by Revenue in Revenue Payroll Notifications (RPNs).

Employees are taxed on all sources of income, including bonuses, overtime hours, and non-cash payments as benefit-in-kind. Profits from sources such as foreign income or pensions, separated spouses and/or fees are not collected under the Pay As You Earn (PAYE) system. Some exemptions from the income tax apply, such as income below a certain threshold. Moreover, any exemptions on income for an employee are applied at source by employers receiving RPNs detailing exemptions so that income taxes will not be deducted from the salary.

The income tax rates are levied on net income remaining after social taxes and other allowances have been removed from the base salary.

Employees are entitled to a tax exemption on the first €10,160, plus €765 for each completed year of service, of lump-sum severance payments that are not paid under the terms of an employment contract.

Some additional employee exemptions exist. For employees over 65 years of age, annual incomes of less than €18,000 for singles, or €36,000 for married or civil-partnered couples, are entirely tax exempt. Additional exemptions apply depending on the number of dependent children remaining in the employee’s care.

Employers with employees who earn less than the exemption amounts for single or married taxpayers will receive an RPN from Revenue that notes that income tax should not be deducted from these salaries. Employees who earn up to twice the exemption amounts may still qualify for this relief.

Overtime income is treated for tax purposes as normal income. Any income beyond the cutoff threshold for a 20% rate is subjected to the higher 40% rate. However, overtime and bonus payments do not lend themselves to additional tax credits against those earnings.

Items that are exempt from income taxes include travel subsidies, rent subsidies, and redundancy or resettlement allowances.

Withholding Methods: Employees are subjected to weekly or monthly contributions withheld at source by the employer through PAYE. Every employee has a Personal Public Service Number (PPSN) used for taxes and social benefits. Income taxes are withheld at source by employers through the PAYE system using this number. Irish citizens born during or after 1971, Irish workers prior to 1979 and all those who have previously received social benefits possess a PPSN.

Employers must use employee withholding information provided by the government on a Revenue Payroll Notification (RPN) to perform withholding on an employee’s wages. RPN data for an employee generally is available if the employee registered his or her status as an employee through the Jobs and Pensions Service within the government’s myAccount online portal. An employer’s payroll software can be configured to retrieve RPNs from Revenue, and employers also can acquire RPNs through the government’s Revenue Online Service. An employee’s RPN identifies details that allow employers to deduct accurate amounts of income tax (IT), Universal Social Charge (USC), and Local Property Tax (LPT) from employees’ pay. Among the details are tax credits, income tax and USC exemptions and cut-off points, and amounts of previous payments and taxes deducted.

The RPN that was most recently available for an employee is the RPN that an employer must use for calculating PAYE deductions applicable to the employee.

Employees for whom an RPN is unavailable are subject to emergency tax provisions.

If an employee provided the employer with his or her PPSN but an RPN is unavailable for the employee, then the emergency tax treatment is as follows:

• for the first four weeks in which the RPN is unavailable, the employee is eligible for the standard rate of 20% up to the weekly standard rate cut-off point, which effective since 2022 is €708, is assessed the higher rate of 40% on income in excess of the weekly standard rate cut-off point, and is ineligible for tax credits; and
• after the first four weeks in which the RPN is unavailable, the higher rate of 40% applies on all of the employee’s income and the employee is ineligible for tax credits.

If an employee did not provide the employer with her or her PPSN, the employee is assessed an emergency tax of 40% on all income and is ineligible for tax credits.

Returns and Remittance: Income taxes deducted from employee wages are remitted on a monthly basis. Employers are required to remit to the Collector General within 14 days after the end of each month. For employers remitting online, the payment period is extended to the 23rd day of the month following the month the income tax deductions occurred. Employers with total annual remittances of €28,800 or less may remit on a quarterly basis if they acquire approval to do so from Irish Tax and Customs, although the payments must still be made on the 14th day following the quarter or 23rd day following the quarter if online.

Effective starting with payments made in 2019, Ireland requires employers to use PAYE real-time reporting, in which employers must report to the government applicable payroll data for each payment to employees when the payment is made or before the payment is made. Among the details that each payroll data submission must indicate are applicable monetary amounts of pay to employees; payment date; and amounts of income tax, Universal Social Charge, and Local Property Tax deducted from pay.

Under the real-time reporting system, the Tax Credit Certificate (P2C) was replaced by a Revenue Payroll Notification (RPN) containing the information required to withhold the correct amount of tax from employees’ pay. Employers must request a current RPN either through their payroll software or the government’s Revenue Online Service (ROS) before making payments to employees. Payroll software may be configured to automatically acquire applicable RPNs from Irish Tax and Customs.

Real-time payroll data submissions may be sent to the government directly through the Revenue Online Service or via one of two methods that involve using payroll software in conjunction with the Revenue Online Service. The two methods are direct payroll reporting, in which the payroll software is configured to transmit data to and from the Revenue Online Service, and ROS Payroll Reporting, in which files created using payroll software are uploaded through the Revenue Online Service. The Tax remittance due dates were not changed by the implementation of the requirement to use PAYE real-time reporting, but Irish Tax and Customs provides employers with a monthly statement of tax liability instead of the employer submitting a monthly return.

Effective for payments made since Jan. 1, 2019, Irish Tax and Customs provides employees with a year-end pay statement to replace the employer-provided Form P60. Effective for payments made until Dec. 31, 2018, at the end of each tax year, employers were responsible for presenting to employees Form P60, certificate of Pay, Tax and Pay-Related-Social-Insurance (PRSI), which detailed deductions during the tax year. Form P60 includes the following parts: the pay received from the employer, the tax deducted under PAYE and the PRSI contributions deducted. Employers must deliver Form P60 to employees by Feb. 15.

Effective until reporting for December 2018, employers needed to file PAYE data using Form P30, Bank Giro/Payslip, which was issued to all registered employers. Employers needed to enter total tax and PRSI contributions onto the form and present the form at a bank, by mail to the Collector General, or by direct debit in monthly installments. Checks also were acceptable, but needed to note the PAYE registration number.

Employees may use myAccount to view their personal payroll data that their employer reported to the government using PAYE real-time reporting. Employees may access their year-end statement through myAccount. The year-end statement detailing payroll data for a year is to be available in myAccount after Dec. 31 of that year.

Recordkeeping: All employers must keep detailed tax records, records of employee working hours, including start and finish times, as well as total leave granted to employees for at least six years. Records must be maintained online, or, if not possible, on paper on a daily and weekly basis.

Records must be maintained for not less than six years and must be made available to Revenue officers upon inspection.

Employee Share Plans: Employers that offer stock options to their employees must either withhold Relevant Tax on a Share Option or provide the stock through the Save-As-You-Earn scheme, which affords employees several tax reliefs.

Effective from Jan. 1, 2018, to Jan. 1, 2024, stock options granted to employees are exempt from income tax if, effective starting Jan. 1, 2019, they have a total value of up to €300,000; a value of up to €100,000 in any one year; or a value of up to the employee’s total salary and other payments in the year the stock option was granted. The employee must be required to exercise the stock option at least 12 months, but less than 10 years, after it was granted.

Relevant Tax on a Share Option: Employees who are offered company share options at reduced rates are subject to income tax on the option price. This tax is known as Relevant Tax on a Share Option (RTSO). RTSO is charged at the highest income tax rate (currently 41%), although employees whose income is chargeable at the standard rate of income tax (currently 20%) may file an application with the Inspector of Taxes to pay the tax at the lower rate. Within 30 days of exercising a company stock option, employees must file a tax payment and return to the office of the collector-general. Employees must also file a Return of Income for every tax year they have purchased a company stock option.

Employee share plans also are subject to Pay Related Social Insurance and Universal Social Charge.

Save-As-You-Earn Schemes: This contractual savings scheme allows employers to provide employees stock options income tax-free. Employers that offer shares as part of a scheme certified by the Revenue Commissioners are not required to withhold taxes from the payments, save for Pay Related Social Insurance and Universal Social Charge taxes.

Employers also may fund a contributory scheme to employees, matching employee contributions to the scheme. In this type of scheme, employers must match contributions at a 1 to 1 ratio or greater and employees may contribute up to 7.5% of their salary into the scheme. Employee contributions cannot exceed €529.16 per month and are set a fixed percentage at the beginning of the year that cannot be varied from month to month. Employee portions of contributions are taxable as normal income. While the employee portion of the contributions are not offered the same tax reliefs, employers must retain them for employees for at least two years.

Regardless of whether a scheme is contributory or not, the total contributions to the scheme generally are capped at €12,700 per year. Employers are not required to provide annual returns unless they serve as the trustee of the funds. Employees may not withdraw funds from approved schemes for at least two years and are only not liable to income taxes or RTSO if they do not withdraw them for at least three years. However, upon withdrawing funds, they are subject to capital gains tax, which is currently levied at a flat rate of 33%. Employees are solely responsible for filing returns and making tax payments beyond the initial Pay Related Social Insurance and Universal Social Charge withheld by employers. The schemes are regulated by the Department of Finance.

Penalties: If employers fail to properly keep and maintain employee records related to total hours worked and total leave, then they could be subject to penalties not exceeding €1,900.

Due to recent economic troubles in Ireland, both employees and employers can apply for a Phased Payment Arrangement, which enables a more prolonged payback. That said, Revenue is highly critical of businesses using unpaid taxes as a form of unauthorized credit and will charge interest for delinquent payments. Employers also may be susceptible to legal enforcement.

When remitting taxes to the Collector General, delayed payments are penalized with an interest of 0.0274% levied for each day the payment is overdue.

Social Taxes

Coverage: Generally, all employees who are under state pension age but older than 16 years and earn more than a certain income threshold are obliged to pay social insurance contributions, called the Universal Social Charge (USC) and Pay-Related Social Insurance (PRSI), into the Social Insurance Fund (SIF). The social insurance system divides income types into 11 different categories, or classes. Most employees fall under Class A, defined as “people in industrial, commercial, and service type employment who are employed under a contract of service with a reckonable pay of €38 or more per week from employment. It also includes civil and public servants recruited from 6 April 1995.”

Employees working abroad but covered by Ireland’s social insurance programs in Ireland must still contribute to the system, although not through PAYE. The Special Collection System, operated by the Department of Employment Affairs and Social Protection, collects this contribution.

If income is not derived from traditional salaries or wages, then taxpayers must file privately to pay their social insurance taxes.

Rates and Thresholds: Irish employee and employer payments into the social security system cover all services from a single rate payment. Therefore, all pension, disability, survivors, sickness, maternity, work injury, unemployment, and adoption benefits are funded through a single employee and employer rate depending on the wage earned weekly.

Universal Social Charge: The Universal Social Charge (USC) is withheld at source by the employer through PAYE on gross annual earnings (before other allowances and taxes have been removed). The USC replaced former income and health levies in 2011.

An employee’s annual income must be more than the USC applicability threshold in effect for a year for the USC to be assessable on the employee’s income that year. Irish Tax and Customs annually establishes USC rate brackets that include USC rates for income up to the USC applicability threshold, although these rates would not be assessed on an employee if the employee’s annual income is not more than the USC applicability threshold. If an employee’s annual income for part of a year was not more than the USC applicability threshold but later that year exceeded the threshold, the USC contribution rates for income up to the threshold would retroactively be in effect on the employee’s income for the year.

Effective for 2022, unchanged from 2021, the USC applicability threshold is €13,000.

Effective for 2022, the standard USC rates are as follows:

Range of Annual Income (Euro)	Income Tax Rate
Up to €12,012	0.5%
More than €12,012 and up to €21,295	2%
More than €21,925 and up to €70,044	4.5%
More than €70,044	8%

Effective for 2021, the standard USC rates were as follows:

Range of Annual Income (Euro)	Income Tax Rate
Up to €12,012	0.5%
More than €12,012 and up to €20,687	2%
More than €20,687 and up to €70,044	4.5%
More than €70,044	8%

Reduced USC rates apply to taxpayers who are at least 70 years of age who annually earn €60,000 or less and also apply to taxpayers who are medical card holders younger than 70 years of age who annually earn €60,000 or less.

Effective for 2022, unchanged from 2021, the reduced USC rates are as follows:

• 0.5% for initial annual income up to €12,012; and
• 2% on all remaining annual income in excess of €12,012.

Effective for 2022, unchanged from 2021, employees for whom emergency tax provisions are in effect for income taxation are assessed an emergency USC rate of 8% on all of their income instead of being assessed the USC in accordance with the progressive USC rate brackets.

Pay-related social insurance: Pay-related social insurance (PRSI) taxes are generally collected under a pay-as-you-earn (PAYE) system. No income limits exist for social insurance tax purposes for either employees or employers.

PRSI is assessed on reckonable earnings. The term reckonable earnings in the context of employment compensation is equivalent to gross employment income including the applicable cash value of benefits in kind.

Employees’ contributions depend on their total wages earned per week (hence, pay related) and are divided into the following rate bands (these bands also are known as the bands for Class A employees):

• employees with weekly earnings of up to €352 are not assessed PRSI taxes; and
• employees with weekly earnings of more than €352 generally are assessed PRSI taxes of 4% on the entirety of their earnings.

However, employees who earn from €352.01 to €424 weekly are eligible for a PRSI credit. The maximum weekly PRSI Credit of €12 applies at gross weekly earnings of €352.01. For gross weekly earnings exceeding €352.01, the maximum weekly PRSI Credit of €12 is reduced by one-sixth of weekly earnings in excess of €352.01.

Effective for 2022, employers are assessed PRSI taxes in accordance with the following employee wage bands in Class A:

• employers are assessed a PRSI rate of 8.8% on the entirety of weekly earnings paid to each employee with weekly earnings of up to €410; and
• employers are assessed a PRSI rate of 11.05% on the entirety of weekly earnings paid to each employee with weekly earnings of more than €410.

Effective for 2021, employers were assessed PRSI taxes in accordance with the following employee wage bands in Class A:

• employers are assessed a PRSI rate of 8.8% on the entirety of weekly earnings paid to each employee with weekly earnings of up to €398; and
• employers are assessed a PRSI rate of 11.05% on the entirety of weekly earnings paid to each employee with weekly earnings of more than €398.

National Training Fund: The National Training Fund Act established a dedicated fund that requires employers to contribute to training initiatives through a levy assessed on reckonable earnings of employees in Class A and Class H employments. The term reckonable earnings in the context of employment compensation is equivalent to gross employment income including the applicable cash value of benefits in kind.

The levy is collected through the PRSI system and is used:

• to raise the skills of those in employment;
• to provide training to those who wish to acquire skills for the purposes of taking up employment; and
• to provide information in relation to existing, or likely future, requirements for skills in the economy.

Effective for 2022, unchanged from 2021, the National Training Fund levy is 1%, and this rate is a component of the total PRSI rate assessed on employers based on employment income paid to employees in Class A or Class H.

Registration: All employers must register with Revenue and the National Social Insurance Fund for social insurance tax purposes. To register, employers must receive Personal Public Service (PPS) numbers, which are unique numbers used to access welfare benefits, from all employees and complete Form 12A, an application for tax credits and standard rate cutoffs. Non-wage employee income is self-assessed and requires the individual to complete the Form TR1, a tax registration form for sole traders, trusts and partnerships.

Employers must register employees for PAYE (if not previously registered) when average weekly payments exceed €8 for full-time work or €2 for part-time work within nine days of when employment commences. Notification should be submitted to the local Revenue office in the employer’s geographic location. In the event that an employer fails to register and should, Revenue will register in its stead and will notify the employer within 14 days. If this is done in error, an employer can issue a formal appeal.

Taxable Amounts: All employees between 16 years and the state pensionable age, who earn at least €38 weekly, must pay the PRSI.

The pensionable age is 66 years of age, and a planned increase to 67 years of age on Jan. 1, 2021, was delayed. The state pensionable age is to be 68 years of age by Jan. 1, 2028.

Income earned overseas not subject to PAYE is still subject to the tax.

Taxation is levied on gross annual income, which includes notional pay, like benefits-in-kind.

Income exempt from USC taxes include payments received from the Department of Employment Affairs and Social Protection (DEASP), payments similar to DEASP payments, early childcare supplements, income from scholarships, income qualifying for childcare services relief, income qualifying from rent a room relief, employer contributions to an approved retirement benefit scheme, and some employer benefits, such as travel passes and cycle to work scheme. The full list of USC exemptions is provided under section 12 of the USC manual.

Employee Share Plans: Effective from Jan. 1, 2018, to Jan. 1, 2024, stock options granted to employees are exempt from USC and PRSI if, effective starting Jan. 1, 2019, they have a total value of up to €300,000; a value of up to €100,000 in any one year; or a value of up to the employee’s total salary and other payments in the year the stock option was granted. The employee must be required to exercise the stock option at least 12 months, but less than 10 years, after it was granted.

Withholding Methods: Employees are subjected to weekly or monthly contributions held at source by the employer through PAYE.

Employees can also keep track of their social insurance taxes withheld through PAYE and claim allowances by accessing PAYE Anytime, a secure online system.

Returns and Remittances: Employers must remit taxes to the Collector General of the Revenue office within 14 days after the month in which income or social deductions were made. For employees remitting taxes online, remittances must be completed by the 23rd of the following month in which deductions were made. For smaller total payments of €28,800 or less, employers are able to remit at a quarterly rate. Employees who do not pay tax through the PAYE system must pay PRSI on their earnings through the special collection system operated by the Department of Employment Affairs and Social Protection.

The PAYE real-time reporting requirements applicable to income taxes generally also are applicable to social taxes.

Recordkeeping: Employers must keep detailed records of employee start and finishing times, including hours worked each day, hours worked each week and leave granted, for at least six years. Employers that do not have access to an electronic system of record-keeping must complete an OWT1 form on a daily or weekly basis, which details the hours worked for each employee.

Each entry into the record must include each employee’s PPS Number and a brief description of his/her duties, in addition to other procedural requirements.

Taxpayers earning income overseas and paying social insurance through Class S must maintain accurate records sufficient to complete a proper income tax filing from the first day of non-PAYE earnings for as long as six years.

Penalties: Employers that fail to comply with social tax requirements are subject to a fine of up to €13,000, imprisonment for up to three years, or both.

Additionally, if employers fail to make the correct PRSI contribution to Revenue, then they can be held liable for the cost of the entire contribution and any error penalties that may be levied.

Other Taxes

Ireland’s national government does not assess any taxes on employment income other than those covered in the Income Taxes and Social Taxes sections of this primer.

State/Jurisdiction Taxes

Taxes on employment income are not assessed by any of Ireland’s councils or local jurisdictions.

COMPENSATION AND BENEFITS

Employers are required to uphold certain labor standards for their employees, including minimum wage thresholds, work hours, holidays, paid leave time, and other benefits, such as termination pay.

Employees are guaranteed a minimum wage enacted by the national government, as well as a guaranteed weekly work maximum of 48 hours. Additional benefits include an average of four weeks of paid vacation per year for a full-time employee, along with seven official state holidays. Ireland also grants extensive leave for maternity, sickness, and care for dependents in need.

Coronavirus (Covid-19) Guidance:

Ireland’s second wage-replacement program, the Employment Wage Subsidy Scheme (abbreviated as EWSS), started July 1, 2020, and is to run until April 30, 2022, for most businesses, or until May 31, 2022, for businesses affected by restrictions introduced in December 2021. To qualify for the EWSS, employers must demonstrate that their income or orders are to decrease by 30% from July 1 to Dec. 31, 2020, or in 2021, generally compared to the same period of 2019. Businesses must ensure on the last day of every month that they continue to meet the requirements, and must stop claiming the subsidy, effective the first day of the following month, if they do not meet the requirements.

From Oct. 20, 2020, to Jan. 31, 2022, or to Feb. 28, 2022, for businesses affected by the December 2021 restrictions, the EWSS provides subsidies ranging from €203 to €350 per employee per week, depending on the employee’s average gross weekly wage. Until Oct. 19, 2020, the subsidy was €151.50 per employee per week for employees whose gross weekly wages were at least €151.50 and less than €203; or a subsidy of €203 per employee per week for employees whose gross weekly wages were at least €203 and less than €1,462. These subsidy amounts are again in effect for February 2022, or for March 2022 for businesses affected by the December 2021 restrictions. For March and April 2022, or for April and May 2022 for businesses affected by the December 2021 restrictions, the EWSS provides subsidies of €100 per employee per week for all eligible employees.

In all cases, employees whose gross weekly wages are less than €151.50 or more than €1,462 are not eligible for a subsidy, and a weekly wage is calculated when payroll data is submitted for employees who are not paid weekly. Employers participating in the EWSS are assessed a 0.5% employer PRSI rate until Feb. 28, 2022, on employees who are eligible for a subsidy, but the reduction is calculated by Irish Tax and Customs and subtracted from reported employer PRSI contributions.

Ireland’s first wage-subsidy program, the Temporary Wage Subsidy Scheme (abbreviated as TWSS), was in effect from March 26 to Aug. 31, 2020. From May 4 to Aug. 31, 2020, the program provided an amount depending on the employee’s average net weekly pay, with a maximum of either €350 or €410 per employee per week, and from March 26 to May 3, 2020, the program provided €410 per employee per week. While employees generally must have been on their employer’s payroll on Feb. 29, 2020, to be eligible for the subsidy, employees who were on unpaid maternity, paternity, parental, or adoption leave, or who received benefits for health and safety, parental, or sick leave from the Department of Employment Affairs and Social Protection in February 2020, were also eligible.

Effective through Sept. 30, 2021, employers may pay employees’ income and social tax liabilities that arose from the Temporary Wage Subsidy Scheme without the payment of those liabilities being considered a benefit-in-kind, and, therefore, taxable income for the employee.

Employers may provide tax-free payments of up to €3.20 per day to employees required to work from home to cover additional expenses related to remote work. Amounts of more than €3.20 per day are subject to income and social taxes.

A one-off public holiday on March 18, 2022, is to recognize Irish Covid-19 victims and healthcare workers.

Minimum Wage

The National Minimum Wage Act, 2000 applies to persons of any age who work under a contract of employment and includes part-time employees.

Effective starting Jan. 1, 2022, Ireland’s standard hourly minimum wage is €10.50. Effective for 2021, Ireland’s standard hourly minimum wage was €10.20.

Any contractual provision that provides for less favorable pay than that to which an employee is entitled under the act is automatically modified to the extent necessary to comply with the act.

An employee’s average hourly rate of pay will be calculated over a specified reference period by dividing pay includible under the act by the number of hours worked. The hourly rate should then be compared with the minimum hourly rate as prescribed in order to establish compliance with the act. In the event that the hourly rate of pay is less than the statutory rate, the underpayment must be paid to the employee. The maximum pay reference period is one calendar month.

Effective since March 4, 2019, the standard minimum wage applies to workers who are at least 20 years of age. Workers 19 years of age may be paid 90% of the standard minimum wage, workers 18 years of age may be paid 80% of the standard minimum wage, and workers under 18 years of age may be paid 70% of the standard minimum wage.

Effective starting Jan. 1, 2022, the hourly minimum wage for workers who are 19 years of age is €9.45; 18 years of age, €8.40; and younger than 18 years of age, €7.35. Effective for 2021, the hourly minimum wage for workers who are 19 years of age was €9.18; 18 years of age, €8.16; and younger than 18 years of age, €7.14.

Before March 4, 2019, workers under 18 years of age could be paid 70% of the minimum wage. Workers in their first year of employment when they were at least 18 years of age could be paid 80% of the minimum wage, increasing to 90% in the second year, regardless of whether they changed employer during the two-year period. Workers at least 18 years of age participating in a training program during working hours could be paid 75%, 80%, and 90% of the minimum wage for the first, second, and final thirds of the program, respectively.

For the purpose of determining whether an employer paid an employee at least the minimum wage applicable to that employee, an employer may count the following types of payments to that employee toward the minimum wage obligation: basic salary, shift premiums, service charges distributed through payroll, the monetary value of board and lodging, piece and incentive rates, and commissions and bonuses that are productivity related. Payments such as overtime premiums, callout premiums, public holiday premiums, Saturday and Sunday premiums, and any payment-in-kind or benefit-in-kind are not considered when determining whether the minimum wage obligation is fulfilled.

Rates of allowances that may be credited toward minimum wage compensation for workers who receive room or board (lodging or meals) from their employer are subject to annual adjustment.

Effective for 2022, the compensation allowance for providing lodging to workers is €24.81 per week or €3.55 per day and the compensation allowance for providing meals to workers is €0.94 per hour worked. Effective for 2021, the compensation allowance for providing lodging to workers was €24.10 per week or €3.45 per day and the compensation allowance for providing meals to workers was €0.91 per hour worked.

Overtime

Employers are not required to pay employees higher rates for work completed in overtime. However, employees are entitled to normal pay during this additional time and some occupations may have self-established overtime pay.

Hours of Work

The maximum average hours an employee may work are 48 per week, not including rest or lunch breaks. The average generally is worked out over a four-month reference period. Employees are entitled to rest periods of at least 11 consecutive hours in every 24-hour period and must have at least one weekly rest period of 24 consecutive hours. This rest period must include a Sunday unless the employer specifically provides otherwise in the contract of employment. Sunday workers are normally entitled to receive additional pay. There also are rules governing night workers.

In calculating the minimum hourly rate under the act, “working hours” means the greater of:

• hours of work specified in a written document, such as a contract of employment, statement of terms and conditions, or any collective agreement, registered employment agreement, or employment regulation order that relates to the employee; or
• the actual hours worked by the employee or which the employee is required by the employer to be available for work (and which must be paid as though the employee were actually carrying out work).

“Working hours” is defined to include time such as overtime, time spent traveling on business and time spent on training courses during normal working hours, but does not include travel to and from work or time spent on annual, sick, protective, adoptive or parental leave or on layoff, strike or lockout.

Separate provisions apply to employees who control their own working hours and the work week maximum does not apply to trainee doctors, workers at sea, employees involved in transport activities, civil protection workers, or the military.

Children under the age of 16 cannot be employed as full-time workers and are limited to 35 hour work weeks during school holidays, or, for ages 15 and 16, eight hours total per week when school is in session. Students under age 16 involved in a work experience or educational program may work up to eight hours per day or 40 hours per week, though they must be granted at least 21 days for vacation.

Holidays

Through 2022, employees are entitled to nine mandatory paid leave days for public holidays. Starting in 2023, employees are entitled to 10 mandatory paid leave days for public holidays. The paid holidays are as follows:

• Jan. 1: New Year’s Day
• First Monday of February, or Feb. 1 if Feb. 1 is a Friday: Imbolc/St. Brigid’s Day (starting in 2023)
• March 17: St. Patrick’s Day
• Easter Monday
• First Monday in May, June, and August
• Last Monday in October
• Dec. 25: Christmas Day
• Dec. 26: St. Stephen’s Day

Leave

Under the Organization of Working Time Act, 1997, an employee who works at least 1,365 hours in a leave year is entitled to four working weeks’ paid annual leave, or one-third of a working week for each month in which the employee works at least 117 hours, or 8% of the hours worked in a leave year, subject to a maximum of four working weeks. Employees who are on maternity or health and safety leave are considered to be in employment and are therefore entitled to their entire annual leave.

Employers also may provide more than the statutory minimum annual leave.

Other types of leave include:

Sick Leave: An employer is not obliged to provide sick pay, though in certain circumstances a right to sick pay may be implied even where not expressly provided for in the contract of employment. If a sick pay scheme is in place, all employees, including fixed-term and part-time workers, must be given details of the scheme. Employees have rights under social welfare legislation to occupational sickness benefits from the state.

Health Leave: Health and safety leave applies to pregnant employees, employees who have recently given birth and employees who are breast-feeding. The employer must carry out a risk assessment on the health and safety of these employees, and if a risk is discovered that cannot be eliminated by preventive measures, the working hours or conditions should be adjusted or the employee should be provided with other suitable work. If none of these options is feasible, the employee is entitled to health and safety leave, which will be paid for the first 21 days. Thereafter, the employee may be entitled to receive social welfare payments.

Maternity Leave: The Maternity Protection Acts of 1994 and 2004 give all female employees a basic entitlement to maternity leave of 26 consecutive weeks, regardless of their length of service. There is no obligation on an employer to pay an employee on maternity leave. The employee is entitled to state social welfare payments that are paid at a standard weekly rate, provided she has accrued sufficient pay-related social insurance contributions in the year prior to the maternity leave.

Effective since Jan. 3, 2022, the standard weekly maternity benefit payment is €250. Effective from March 25, 2019, to Jan. 2, 2022, the standard weekly maternity benefit payment was €245.

An employee is entitled to 16 additional weeks of unpaid maternity leave carrying no entitlement to social welfare payments. An employee must give four weeks’ notice in writing to the employer of her intention to take maternity leave. Employees are also entitled to paid time off during working hours for pre- and postnatal medical appointments.

An employee has the right to return to the same job she held prior to going on maternity leave. If this is not reasonably practicable, the employer must provide suitable alternative work, which is appropriate, suitable for the employee in question and on no less favorable terms or conditions for the employee.

The Maternity Protection (Amendment) Act, 2004 introduced a number of changes to arrangements for maternity leave in the event of sickness, hospitalization, or death of a child. In certain circumstances, related leave will be available to the father of the child. There are also provisions for expectant mothers to attend one set of prenatal classes without loss of pay, provision of a right to fathers to paid time off to attend two prenatal classes immediately prior to the birth of the child, specific provisions for breast-feeding mothers in relation to working hours and breaks without loss of pay, and provision that an employee’s absence from work on additional maternity leave will count for all employment rights associated with the employment (except remuneration and retirement benefits) such as seniority and annual leave.

Paternity Leave: The Paternity Leave and Benefit Act went into effect Sept. 1, 2016, and gives fathers of newborns a basic entitlement to paid paternity leave of two weeks. Eligible fathers have to take paternity leave within six months after the birth or adoption of a child.

The employee is entitled to state social welfare payments that are paid at a standard weekly rate, provided he has accrued sufficient pay-related social insurance contributions in the year prior to the paternity leave. The standard weekly rate for state social welfare payments of paternity leave is the same as the standard weekly rate for state social welfare payments of maternity leave.

Effective since Jan. 3, 2022, the standard weekly paternity benefit payment is €250. Effective from March 25, 2019, to Jan. 2, 2022, the standard weekly paternity benefit payment was €245.

Adoption Leave: An adopting mother or sole adopting father is entitled to 24 weeks of unpaid adoption leave from the Department of Employment Affairs and Social Protection, which is the government office in charge of social and family programs. However, employees taking this leave may be entitled to receive social welfare payments provided sufficient social insurance contributions have been made through PRSI. Employees are entitled to additional unpaid adoption leave of 16 weeks, for which no social welfare payments are available. As with maternity leave, on return to work the employee has a right to the job held prior to taking adoption leave or to suitable alternative work if this is not reasonably practicable.

Adopting parents are entitled to paid time off to attend preparation classes and pre-adoption meetings with social workers required during the pre-adoption process. An employee’s absence from work on unpaid adoption leave will count for all employment rights (except remuneration and retirement benefits) associated with the employment, such as annual leave and seniority.

Parental Leave: Effective since Sept. 1, 2020, parents are entitled to 26 weeks of unpaid parental leave to care for a natural child, an adopted child, or a child for whom the employee acts as guardian. This leave must be taken before the child reaches 12 years of age. This upper age limit can be extended in certain circumstances when an adopted child is involved. In the case of a child with a disability, leave may be taken up to the child reaching 16 years of age. Both the father and the mother are entitled to parental leave. Effective until Aug. 31, 2020, parents were entitled to 22 weeks of unpaid parental leave to care for a natural child, an adopted child, or a child for whom the employee acts as guardian, and the leave needed to be taken before the child reached eight years of age.

There is no obligation on the employer’s part to pay the employee during parental leave, nor is there any entitlement to social welfare payments during this time. In order to take parental leave, an employee must generally have one year’s continuous service, although there are some exceptions, and must give six weeks’ notice. Parental leave is limited to 18 weeks per 12-month period where an individual has more than one child, subject to certain exceptions. The annual limit does not apply to children that twins, triplets, or part of other multiple births. The 26-week entitlement may be taken in one continuous period or in separate blocks of a minimum of six weeks with 10 weeks (or less by agreement) between each block. With the employer’s agreement, the employee may separate the leave into periods of days or even hours up to the 26-week maximum.

An employer has the right to postpone parental leave if the leave would have a substantially adverse effect on the operation of the business. Parental leave may generally not be postponed for more than six months.

Parents of children born or adopted after Nov. 1, 2019, are entitled to five weeks of paid parental leave to be used during a child’s first two years of life or adoption, which is to be extended in July 2022 to seven weeks over a two-year period. The weekly benefit paid for parental leave is the same as the benefit for maternity and paternity leave, or €250.

Carer’s Leave: Employees are entitled to unpaid leave from their jobs for a period of 104 weeks in order to care for someone in need of full-time care and attention. An employee on caregiver’s leave may also, on one occasion only, apply to extend leave for a further 104 weeks where two beneficiaries of care are residing together. In such circumstances, the second period shall commence on the date that the deciding officer grants the extension of leave. Accordingly, such an eligible employee may take 208 weeks of caregiver’s leave. Caregivers are not entitled to be paid by employers while on caregiver’s leave but will have their jobs kept open for them for the duration of the leave.

Employees must have 12 months’ continuous service with an employer to be eligible to apply for caregiver’s leave.

Wage Payment

Employees are entitled to be paid on time as part of the contract of employment, which determines whether employees are paid monthly or weekly.

Employers are required to give employees pay slips detailing PAYE and PRSI contributions after each pay period.

Bonuses and Special Benefits

Ireland does not require employers to provide bonus payments to employees.

Termination Pay

The Redundancy Acts of 1967 and 2007 provide certain entitlements for employees who have been terminated from their jobs for reasons beyond their control. Employees that have been terminated due to the closure of a business or the elimination of an employee’s position are entitled to two weeks of pay for every year of service over the age of 16, plus an additional week’s pay. The maximum earnings eligible to be remitted to the terminated employee is €600 per week. This redundancy payment is tax-free.

Voluntary redundancy also can apply if an employer requests certain employees to volunteer for termination in order to reduce the company’s workforce.

Workers’ Compensation

An injury benefit applies to almost all workers in Ireland who are unfit to work due to an accident at work, an accident during a business trip or from an occupational disease. Workers in Ireland must be unable to work for at least three days. The injury benefit is funded by PRSI contributions and paid by the Department of Employment Affairs and Social Protection. Injury payments are subject to taxation.

Recordkeeping

Payroll records required to be kept by employers include employee information, such as names, addresses, Personal Public Service numbers, and a description of each employee’s duties; a written statement of each employee’s terms of employment; the days and total hours per week worked by each employee; the amount of annual leave and public holiday leave and the amounts paid for such leave taken by each employee per week; any additional pay for public holidays; and a written statement of the employee’s normal starting and ending times for the work day, if not otherwise specified in writing. Records must be kept for three years.

FOREIGN WORKERS

Nonresidents of Ireland are classified into two primary groups: European nationals and non-European nationals. European Economic Area (EEA) nationals have the ability to freely seek work without a work permit. Non-EEA nationals must apply and pay for a work permit or the Irish Residence Permit, although a visa is not required for visitors from most countries worldwide. Nonresident workers are not entitled to most of the social insurance benefits available to resident workers, but do retain some workplace-related protections.

Foreign workers in Ireland must have a work permit if their salaries exceed a certain threshold and is granted for a limited period of time, although renewals are common. Foreign workers aged 16 years or older, who intend to stay in Ireland for more than 90 days must obtain the Irish Residence Permit or a work permit for key personnel. European Economic Area and EU nationals are not required to have a work permit or the Irish Residence Permit.

Foreign workers are subject to Irish taxation on both income earned in Ireland and abroad, although double taxation agreement prevent overlapping obligations. Social insurance taxes also are levied on nonresident workers, since they qualify for certain workplace benefits.

If terminated, foreign employees can remain in Ireland for a period of time while attempting to find new work opportunities.

Visas: The right to work in Ireland can only be conferred the following ways:

Non-European nationals: Generally, citizens of non-European states are required to attain one of the following employment permits:

• General Employment Permit: General employment permits are available for employees with salaries of €30,000 or more. Workers with lower salaries will be considered only in exceptional cases. This permit is granted for an initial two years and then renewed on a three-year basis. An employer or employee can apply for this permit after an employment offer has been extended. Finally, employers will not be approved for employee general employment permits if 50% of total employees might be EEA nationals. Some occupations are ineligible for a non-EEA national work permit. A new application fee of €500 for up to six months, €1,000 for up to two years and €1,500 for up to three years (renewal only) will be levied on each application. Renewals are €750 for six months and €1,500 for up to three years.
• Critical Skills Employment Permit: Critical Skills permits are designed for workers with incomes in excess of €64,000 annually in eligible occupations. Some approved occupations may have salaries as low as €32,000 annually. The permit is issued on a two-year basis, after which, while renewal is not required, employees should register with their local immigration officer. Spouses and dependents can also register under the Critical Skills permit with the worker. New cards require a fee of €1,000 for up to two years.
• Intra-Company Transfer Permit: This permit is limited to senior management, key personnel, or employees in a training program. The salary threshold is €40,000 and the employee must have been working for the overseas company for a minimum of 12 months prior to transfer. Permits are granted on a two-year basis, but can be extended upon application for a maximum of five years. Spouses and dependents can be categorized under this permit and, once a legal resident, can apply for a work permit.
• Dependent/Partner/Spouse Employment Permit: Spouses, civil partners and dependents of a holder of a Critical Skills Employment Permit are entitled to apply for permission to work without requiring a separate employment permit.

Notably, Ireland does not permit use of the EU Blue Card for non-Europeans working in Europe.

Contract for Services Employment Permit: This permit is for contractors hiring non EU workers to work in Ireland and carry out work for part of a contract. The contractor must be registered in Ireland and file the permit application and any foreign employee hired by the contractor must have worked with the contractor for at least six months prior to working in Ireland. The maximum stay for this permit is five years.

Internship Employment Permit: This permit can be issued for up to one year for students enrolled in a full time degree at an overseas University who take an internship in Ireland as a mandatory part of their studies.

Reactivation Employment Permit: The reactivation permit is for individuals who have previously had employment permits but fell out of the system through no fault of their own or for those who have been exploited in the workplace.

Sports and Cultural Employment Permits and Exchange Agreements Employment Permits: These two types of permits are for foreign employees working in the fields of sporting and cultural activities, or those who will be working based on international reciprocal agreements.

EU/EEA/Swiss/U.K. nationals: Citizens of any European Union or European Economic Area member state, Switzerland, or the United Kingdom do not require an employment permit to work in Ireland. These citizens are also entitled to have their spouses and children come live with them and will be subjected to the same legal rights as Irish citizens, with an exception that family members who are not U.K. or EEA nationals but wish to join a U.K. national require a visa.

Taxes: Individuals migrating to Ireland are liable for taxation on income in Ireland and earned overseas, though all income earned prior to Jan. 1 of the year of migration is not subject to taxation. Employers must withhold income taxes on foreign employment for the portion of income attributable to work duties performed in Ireland. Other income may be subject to Irish tax but is not subject to PAYE withholding. Some exceptions may apply under Double Taxation Agreements or tax treaties with foreign states and may reduce the amount owed to Ireland through a credit.

Nonresident workers also are liable for social insurance taxation by their employers, since foreign workers are still eligible for Jobseeker’s Benefit, Illness Benefit, and State Pension (contributory). The rate depends on worker earnings.

Employers that employ nonresident artists working on productions from outside the European Union and the European Economic Area are required to withhold a film tax on payment made to artists, set at the current 20% standard rate on income tax.

Special Assignee Relief Programme: In an effort to attract talent to Ireland, the government introduced the Special Assignee Relief Programme (SARP) in 2012, which is set to continue to exist through 2022. SARP provides for income tax relief on a proportion of income earned by an employee who is assigned by their employer to work in Ireland for that employer or for an associated company if a number of conditions are met. For 2015 and subsequent years, an employee can receive tax relief of 30% for up to five consecutive years on their annual income greater than €75,000 and up to €1 million. To claim the relief, employers must submit form SARP 1A within 90 days of the employee’s arrival in Ireland.

Wages/Payments: Irish law does not specify that payment be made in euro.

Termination: Foreign workers from the EEA or EU are permitted to remain in Ireland and search for new work. For non-EEA nationals, redundancy can present several complications. For those permit holders present for fewer than five years, foreign workers must contact the immigration office and establish that they are searching for new work. EEA nationals who are terminated may be entitled to the Jobseekers’ Benefit (JB) for up to 12 months, depending on their PRSI contributions, or the means-tested Jobseekers’ Allowance. Non-EEA nationals are not entitled to social insurance payments in Ireland.

WORKING IN THE UNITED STATES

Foreign workers from Ireland must meet general visa requirements and be certified to be employed in the U.S. General visa requirements for the U.S. are included in the separate

Ireland is eligible for the visa waiver program for business visitors, which allows Irish citizens to travel to the U.S. for 90 days or less for business-specific purposes without having to obtain a B-1 business visa. Stays longer than 90 days will require a visa. Individuals may return to the U.S. under the visa waiver program if a “reasonable length of time” has passed. The determination for a reasonable length of time is at the discretion of the Department of Homeland Security.

Irish workers are eligible to work in the U.S. under H-2B visas, which cover labor or services of a temporary or seasonal nature in occupations other than agriculture or registered nursing. The number of H-2B visas issued each year is limited by U.S. law.

U.S. employers also must check the names of all new-hires and employees against the Specially Designated Nationals and Blocked Persons List, administered by the Treasury Department’s Office of Foreign Assets Control (OFAC). Because OFAC prohibits financial transactions with individuals on the list, employers cannot employ them and may face fines for failing to comply.

For tax purposes, Irish citizens are subject to U.S. employment-based taxation on income earned in the U.S. unless they can claim an exemption under certain tax treaty provisions or they work under specific visa types that exempt earnings from taxes. Ireland has both a tax treaty and a social tax totalization agreement with the U.S.

State and local taxation of Irish workers also can apply, although some states within the U.S. recognize international tax treaties that can eliminate that income tax liability for foreign workers.

The U.S. labor laws apply to all workers employed and providing services in the country.

Work eligibility as an employee is contingent upon Department of Homeland Security and Labor Department approval and the employee receiving a U.S. Social Security number from the Social Security Administration.

Tax Residency: In general, employees working in the U.S. on a temporary basis are considered nonresidents for tax purposes unless they qualify for resident status. Employees can be granted permanent resident status through the so-called green card test or if they meet the substantial presence test under the U.S. tax code. More information on these requirements is in the

Permanent residents are subject to U.S. tax requirements the same as U.S. citizens and are taxed under the U.S. system on their worldwide earnings.

Income Taxes:

Generally, nonresidents in the U.S. who are from Ireland and are working in the U.S. are subject to U.S. taxes based on their U.S.-sourced income. Income is taxed differently based on whether it is categorized as wage income or nonwage income, which includes interest and dividends.

A Form W-4, Employee’s Withholding Certificate, must be filed by each employee with their employer. All nonresidents in the U.S. who are from Ireland and are working in the U.S. must claim “single” in Step 1c, regardless of marital status; write “Nonresident Alien” or “NRA” in the space under Step 4c of the form; and may not claim “exempt” in the space under Step 4c.

Nonresident alien employees may adjust withholding using Step 2b or 2c of the Form W-4; certain employees also may be able to use Steps 3, 4a, or 4b. More information about Form W-4 requirements for nonresident alien employees is available in the

Although the versions of Form W-4 issued in 2020 or later significantly differ from the versions issued in 2019 or earlier, nonresident employees that filed a valid version of Form W-4 from 2019 or earlier with their employer do not need to file another Form W-4 with the employer unless they need to implement a change for their withholding. On Forms W-4 issued in 2019 or earlier, nonresident alien employees were required to check the “single” box on line 3, regardless of marital status; write “Nonresident Alien” or “NRA” above the dotted line on line 6; and were not permitted to claim “exempt” on line 7 of the form.

An additional amount is added to a nonresident alien employee’s wages for calculating federal income tax withholding, with the amount based on pay period frequency and the date of the employee’s most recently filed Form W-4. The table of additional amounts applicable to Forms W-4 from 2020 or later and the table applicable to Forms W-4 issued before 2020 are available in the

Nonwage income and self-employed foreign workers can be subject to income tax withholding at a flat rate of 30%.

Additionally, foreign workers may be taxed differently based on the specific type of visa they hold.

Tax treaties: Ireland and the U.S. have a tax treaty with provisions addressing host country taxation of the nonresident workers. A summary of those benefits is listed in the Tax Treaty Exemption Comparison Chart. To claim the treaty benefit, the nonresident must file Form 8233, Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual, with the employer.

Students and trainees in particular must include a statement with Form 8233 to claim a tax treaty exemption from withholding of tax on compensation for dependent personal services. This statement affirms that the student or trainee is temporarily in the U.S. for purposes of studying or has accepted an invitation by the U.S. government (or by a political subdivision or local authority) for the purpose of studying or engaging in research for a period of one year for students by a university or other recognized educational institution in the U.S. It also must affirm that the individual will receive compensation for services performed in the U.S. There is no limit is placed on the student and trainee compensation for Irish residents.

Examples of the statements necessary to claim a treaty exemption from U.S. taxes are included in Internal Revenue Service Publication 519, U.S. Tax Guide for Aliens.

Social Taxes: Most foreign workers are subject to paying into the U.S. Social Security system. Foreign nationals who are exempt from paying income tax and who do not have the eligibility to receive a social security number may not be required to pay social taxes. Foreign workers contributing to Social Security for a certain time period may be eligible to receive benefits.

Generally, foreign workers in the U.S. that have specific visas as exchange visitors or students or who are temporarily in the U.S. for agricultural work are not subject to social taxes on income that is obtained from the purpose in which they originally entered the U.S.

Totalization Agreements: Social Security totalization agreements can allow foreign workers and U.S. nationals working abroad to avoid paying into two social security systems while being subjected to losing benefits for their home country system. Under totalization agreements, generally, foreign workers will only pay into one of the social security systems- either the home or the foreign system- but not both. Foreign nationals, utilizing a totalization agreement, also can count years of contributions paid to different social security systems to all of the systems they have contributed to in order to be eligible for benefits in one country.

Ireland and the U.S. have entered into a totalization agreement and a summary of those provisions is included in

Wage Payment: Under certain visas for certain types of employment, employers are required to pay foreign workers the higher of either the prevailing wage or the actual wage that is paid to U.S. workers that have similar skills and qualifications.

There are no particular requirements that employees be paid in U.S. dollars.

TREATY ARRANGEMENTS

Ireland has entered into more than 60 income tax treaties, including an income tax treaty with the United States. Ireland also has nine totalization agreements for social tax coverage purposes, including an agreement with the United States.

Ireland’s tax treaties are available in

If income is taxed abroad by a country without a double taxation agreement with Ireland, then the taxpayer is given some relief in the form of either crediting the foreign tax paid against the Irish tax liability, or exemption in some circumstances.

RESOURCES

General

Local Revenue Offices

Citizens Information Board: Starting a New Business

CIA World Factbook: Ireland

U.S. State Department: U.S. Relations With Ireland

Currency Details

Unicode Consortium: Currency Symbols

International Organization for Standardization: Currency Codes - ISO 4217

United Nations: United Nations Terminology Database: Ireland

Taxes

Income Tax and USC Information for Employers

Finance Act 2020 (Act No. 26/2020)

Citizens Information Board: Pay Related Social Insurance (PRSI)

Citizens Information Board: Employer Obligations for Pay Related Social Insurance (PRSI)

Citizens Information Board: Working Time Records

Department of Employment Affairs and Social Protection: PRSI Contribution Rates

Taxes Consolidation Act, 1997

Tax Credits, Rates and Reliefs

Citizens Information Board: Universal Social Charge (USC)

Social Welfare Act, 2017

Irish Tax and Customs: Universal Social Charge

myAccount and Other Online Services

PAYE Realtime Reporting

Irish Tax and Customs: KEEP Employee Share Option Program

Compensation and Benefits

Department of Employment Affairs and Social Protection

Citizens Information Board: Employment Rights and Conditions

Citizens Information Board: Minimum Wage Rate

Overtime, Bonuses and Second Jobs

National Minimum Wage Order 2021 (SI 517/2021)

Irish Tax and Customs, Employment Wage Subsidy Scheme Guidelines

Department of Finance, Extension of Employment Wage Subsidy Scheme to April 30, 2022

Private Use of a Company Car

Citizens Information Board: Parental Leave

Citizens Information Board: Public Holidays

Foreign Workers

Department of Justice and Equality: Naturalisation and Immigration Service

Department of Business, Enterprise, and Innovation

Citizens Information Board: Employment Permits

Citizens Information Board: Migrant Workers and Unemployment

Citizens Information Board: Taxes and Social Insurance for Foreign Workers

Citizens Information Board: Visa Requirements

Citizens Information Board: Working in Ireland as a Foreigner

Working in the United States

U.S. Department of Labor:

• Foreign Labor Certification
• Hiring Foreign Workers

U.S. Internal Revenue Service:

• IRS Notice 1392, Supplemental Form W-4 Instructions for Nonresident Aliens
• IRS Publication 15, Circular E, Employer’s Tax Guide
• IRS Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities
• IRS Publication 519, U.S. Tax Guide for Aliens
• IRS Publication 901, U.S. Tax Treaties

U.S. Department of State, Visa Waiver Program

Tax Treaty Arrangements

Double Taxation Agreements with Ireland

U.S.-Ireland Totalization Agreement