Glossary · PAYE and payroll
PAYE
Pay As You Earn: the system that takes income tax, USC and PRSI from your wages before you're paid.
PAYE means your employer deducts income tax, USC and PRSI from each payslip and sends it to Revenue. Most employees never file a return because PAYE gets it right during the year.
Your employer works out the deductions using a Revenue Payroll Notification (RPN), which tells them your tax credits and rate band. If they don't have one, you pay emergency tax.
Work it out
Related terms
Revenue Payroll Notification (RPN) · Cumulative basis · Emergency tax · Tax credit
All terms · General information, not tax advice.