Tax on a sign-on bonus

A joining bonus is taxed as pay through PAYE, in the period it's paid.

A sign-on or joining bonus is part of your pay from the new job. Your employer runs it through payroll and takes off income tax, USC and PRSI. If you start mid-year, credits and band you didn't use earlier in the year can lower the tax on it. That's because each payslip looks at your whole year so far (the cumulative basis).

You may have to pay the bonus back if you leave early. Paying it back doesn't usually get the tax back by itself. Ask your employer how they handle it.

Work it out

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Terms: Bonus tax · Cumulative basis

All payslip topics · General information, not tax advice.