PAYE Settlements Agreements let employers make one yearly payment of PAYE, USC, and PRSI to Revenue for minor and irregular non-cash employee benefits. This arrangement means employers can handle the Tax liabilities directly, sparing employees from extra costs or payroll adjustments.
To file a PSA, advance approval from Revenue is needed before the Tax year ends. The PSA submission and payment deadline is January 23rd following the year-end. For instance, PSA requests for 2025 must be submitted by December 31, 2025, with filing and payment due by January 23, 2026. Recently, Revenue clarified how the gross-up method should be used in PAYE Settlements Agreements.
An example would be vouchers or event tickets in excess of small benefit exemption.