Small Business Payroll: Step-by-Step

When running a small business, hiring employees and setting up payroll is one of the first key tasks. Payroll isn’t just about paying wages - it involves registering with Revenue, managing tax obligations, and ensuring your team is paid accurately and on time. While it might seem daunting, setting up payroll correctly from the beginning can save time, reduce stress, and keep your business compliant with Irish employment laws.

Here’s a step-by-step breakdown to guide you through the process, along with details on how Bond & Co can support your payroll setup and ongoing management.

1. Register as an Employer with Revenue

Before processing payroll, you must register as an employer with Revenue. This notifies Revenue that you are employing staff and will be managing employee tax contributions.

Registration is completed through the Revenue Online Service (ROS).
Once approved, you will receive an employer registration number, which is required to legally operate payroll in Ireland.

2. Choose a Payroll System

There are several options for running payroll depending on your time, resources, and confidence handling tax matters:

Manual payroll (not recommended due to complexity).
Payroll software designed for Irish businesses.
Outsourced payroll handled by a professional accountant.

Bond & Co offers a reliable and stress-free payroll service tailored for small businesses.

3. Collect Employee Details

You’ll need to gather essential information for each employee:

PPS Number
Contact details
Date of birth
Employment start date
Bank account details
Agreed salary or hourly wage

Register each employee with Revenue through your payroll software or via your accountant so the correct tax bands and credits apply.

4. Understand Your Payroll Obligations

Running payroll comes with several legal responsibilities:

Deducting PAYE, USC, and PRSI from employee wages
Paying employer PRSI
Submitting real-time payroll reports to Revenue each pay period

These must be submitted on or before the employee’s payday, making accurate record-keeping essential.

5. Decide How Often You’ll Pay Staff

You can choose weekly, fortnightly, or monthly pay cycles - whatever suits your cash flow and team. Just ensure you communicate the schedule clearly and maintain consistency.

6. Process Your First Payroll

Once all systems are in place:

Enter employee hours or salary
Calculate taxes and deductions
Generate payslips
Submit reports to Revenue
Transfer payments to staff and Revenue

Double-check all figures to avoid mistakes that could result in penalties or delays.

7. Keep Payroll Records for Six Years

You are legally required to keep detailed payroll records for at least six years, including:

Payslips
Employment contracts
Revenue submissions
Payment confirmations

This is especially important if Revenue carries out an inspection or audit.

8. Ensure All Staff Sign Employment Contracts

A signed contract protects both you and your employees, clearly outlining:

Job title and duties
Pay rate and benefits
Hours of work
Notice periods and probation terms

Having a formal agreement helps avoid future misunderstandings or disputes.

Let Bond & Co Handle Your Payroll

Setting up payroll doesn’t need to be a stressful experience. At Bond & Co, we specialise in helping small businesses across Dublin manage their payroll needs. Whether you need help with setup, calculations, reports, or ongoing payroll support - we’ve got you covered.

With us, you’ll get:

Payroll that’s fully compliant with Revenue requirements
Timely tax submissions
Professional payslip generation
Ongoing expert support

Let us simplify the process so you can focus on growing your business with confidence.

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