As we approach the end of 2025, there are several important payroll, Tax, and compliance considerations for employers. Below is a summary of key actions and updates to help you stay compliant and optimise your year-end processes.
- Payroll Adjustments
- Small Benefit Exemption
- BIK Valuations
- Enhanced Reporting Requirements
- PAYE Settlements Agreements (PSA)
- Contractors
- Employer Provided Meals
- PRSI Classes & Rates
- 2021-2024 Tax claims
- Employer and Employee Pension Contributions
- The Year end Stock take for Audit Clients
Preparation for 2026
Payroll Adjustments
Employers should review 2025 payroll thoroughly and identify any items that may require adjustment. In particular, areas such as Benefits in Kind (BIK) and contractor arrangements should be examined closely to ensure compliance and accuracy in reporting.
Below is a detailed summary of post–2025 year-end payroll adjustment deadlines in Ireland, based on official Revenue guidelines:
Deadlines for Payroll Corrections – Post Year-End 2025
1: Self-Corrections Under Code of Practice
- Errors in 2025 payroll that remain uncorrected by 31 Dec 2025 can still be rectified without penalty under Revenue’s voluntary self-correction regime.
- Requirements:
- Provide advance written notification to Revenue.
- Submit corrected figures, interest calculations, and payment.
- Deadline: Within 9 months after the company’s Accounting year-end.
2: Monthly Payroll Statement Corrections (Real-Time Reporting)
- Employers must review ROS monthly payroll statements (issued by 5th of each month) and correct discrepancies by the following:
- Before 14th of the month the statement is generated.
- Example:
- Statement for Dec 2025 (issued 5 Jan 2026) must be corrected by 14 Jan 2026.
3: Rate and Class Updates
- PRSI and USC rate changes (e.g., 1 October 2025 increase) should be applied from that date, and any earlier errors reviewed and adjusted before year-end.
- PRSI class changes (e.g., an employee turning 66) must be reflected immediately via payroll to avoid cumbersome reclaims.
4: Special Cases & Disclosure Schemes
- Misclassification corrections (e.g., employee vs. contractor) for 2024–25 under the Karshan disclosure scheme may be submitted on or before 30 January 2026.
- Data errors reported through Enhanced Reporting Requirements should be checked and corrected forthwith, as Revenue are expected to increase scrutiny on 2024–25 data during 2026.