Payroll records

Published Wednesday 30 September 2026

Table of contents

• What are payroll records?
• What should payroll records include?
• Irish laws that require payroll records
• Why do you need to keep payroll records?
• How long to keep payroll records in Ireland
• Where to store payroll records
• Best practices for managing payroll records
• Simplify payroll record keeping with Xero
• FAQs on payroll records
• Related terms
• Learn more about payroll records

Key takeaways

• Payroll records show what you paid and deducted for each employee, plus the pay details you report to Revenue on or before every pay date
• Revenue expects six years after the end of the tax year for payroll records, while working-time and minimum wage records need at least three years
• Employment law and the My Future Fund auto-enrolment scheme shape what you record, and data protection law governs how you protect it
• Revenue accepts digital records you can reproduce on request, so payroll software is a practical way to stay ready for a Revenue check

What are payroll records?

Payroll records are the documents that show what you paid each employee, what you deducted and how you worked it out. They cover pay and tax details, hours and leave, and the reports you send to Revenue.

Think of them as the receipts behind every pay run. If an employee queries a payslip or Revenue asks about a deduction, your payroll records hold the answer.

In Ireland, Revenue uses them to check Pay As You Earn (PAYE) income tax, Universal Social Charge (USC) and Pay Related Social Insurance (PRSI). The Workplace Relations Commission (WRC) can also review your pay and working-time records.

What should payroll records include?

Irish payroll records combine the tax details Revenue needs with the employment details that working-time and pay laws require. For each employee, your records should include:

• their name, address and Personal Public Service (PPS) number
• their start date and, if they leave, their leaving date
• the Revenue Payroll Notification (RPN) for each employee
• gross pay for each pay period
• PAYE, USC and PRSI deductions
• pension contributions, including auto-enrolment
• net pay
• copies of their payslips
• hours worked, leave taken, public holidays and rotas
• expenses and benefits in kind you've paid or provided
• confirmations of each payroll submission to Revenue

Expenses and benefits need receipts and approvals behind them. A regular routine for tracking business expenses keeps that evidence ready alongside your payroll.

Example of a payroll record

Here's how one pay week might look for a fictional employee. Aoife works 40 hours a week at a café in Galway and earns €15 an hour.

Her payroll record for that week would show:

• her name, address, PPS number and start date
• the RPN Revenue issued for her, which contains her tax credits and rate band
• 40 hours worked, matching the rota you gave her
• gross pay of €600
• the PAYE, USC and PRSI your payroll software calculated
• her My Future Fund contribution, if she's been auto-enrolled
• her net pay and the date it reached her bank account
• a copy of her payslip
• Revenue's confirmation of the payroll submission for that pay date

The figures here are illustrative. Your payroll software works out the actual deductions from each employee's RPN.

Irish laws that require payroll records

Several Irish laws decide what you record, and each has its own rules. They sit alongside your wider employer duties when you take on staff.

Revenue and PAYE Modernisation

Since PAYE Modernisation began on 1 January 2019, you report each employee's pay and deductions to Revenue on or before the date you pay them. Before you run payroll, you get an RPN for each employee, which tells you which tax credits and rate bands to apply.

Your payroll records back up every one of these submissions. If Revenue asks how you reached a figure, the record shows the working.

Organisation of Working Time Act 1997

This Act requires you to record the hours your employees work. Citizens Information's guide to working-time records lists what to keep. That includes each employee's duties, weekly days and hours, leave, public holidays and rota.

National Minimum Wage Act 2000

You must keep records that show each employee received at least the national minimum wage. Since 1 January 2026, the national minimum wage is €14.15 an hour for employees aged 20 and over, with lower rates for younger workers.

Payment of Wages Act 1991

Under section 4 of the Payment of Wages Act 1991, you give every employee a written statement of their gross pay and each deduction. That statement is their payslip, and a free payslip template helps you get the layout right.

GDPR and the Data Protection Act 2018

Payroll records hold personal data, so you're a data controller under the General Data Protection Regulation (GDPR) and the Data Protection Act 2018. The Data Protection Commission's employer guidance explains what that means for employee data.

The retention periods other laws set still apply in full. GDPR governs how you protect that data and when you delete it once those periods end.

Why do you need to keep payroll records?

Beyond the legal duty, good records protect you when questions come up and help you plan. Here's where they make the biggest difference.

Revenue checks and audits

Revenue can inspect your records at any time to confirm you're deducting the right PAYE, USC and PRSI. Organised records let you respond quickly and show each figure matches what you submitted.

Employee disputes

If an employee disputes their pay, hours or holiday pay, your records are your evidence. They show exactly what was worked, paid and deducted, which can settle a query before it becomes a WRC complaint.

Business planning

Your payroll records show what your team costs you each month, including employer PRSI and pension contributions. That history helps you budget for pay rises, seasonal staff or your next hire.

Employee requests

Employees sometimes need proof of income, for example, for a mortgage or rental application. With payslips and pay history to hand, you can confirm their earnings the same day.

How long to keep payroll records in Ireland

Keep pay and tax records for six years after the end of the tax year they relate to. That's Revenue's rule in its guidance on records employers must keep.

Ireland's tax year matches the calendar year. So records for the 2026 tax year stay on file until at least the end of 2032.

Working-time records follow a different clock. Section 25 of the Organisation of Working Time Act 1997 says to keep them for at least three years from the date you made them.

Minimum wage records need the same three years, under section 22 of the National Minimum Wage Act 2000. Because the periods differ, set a deletion date for each type of record.

Gaps in your records can be costly. Failing to keep the records Revenue needs can bring a €3,000 penalty.

That's separate from working-time rules. According to Citizens Information, not keeping working-time records is an offence with a fine of up to €1,900.

Where to store payroll records

You can store payroll records digitally, on paper or both, as long as they're complete and easy to produce. Whichever you choose, keep them secure.

Cloud and digital storage

Revenue accepts electronic records, provided you can reproduce them in a readable form when asked. Section 887 of the Taxes Consolidation Act 1997 sets out this rule.

Cloud-based online payroll keeps your records backed up and searchable. You can pull up a payslip from three years ago without digging through filing cabinets.

Paper records

Paper works if you file records by employee and tax year in a locked cabinet. Protect them from fire and water, and scan key documents so you have a backup.

Security and GDPR

Payroll files hold PPS numbers, bank details and salaries, so a breach could cause real harm to your team. Limit access to the people who need it and turn on two-factor authentication.

When a retention period ends, delete digital files and shred paper copies securely. A written retention policy shows why you kept each record as long as you did.

Best practices for managing payroll records

A few regular habits keep your payroll records accurate and ready for Revenue. Build these into your routine:

• match each payroll submission to the payment that leaves your bank account
• check each new employee's RPN and PRSI class before their first pay run
• issue a payslip every pay day and keep a copy
• file rotas and timesheets with the pay period they relate to
• keep a retention schedule showing when each record type can be deleted
• review who can access payroll files at least once a year

Auto-enrolment records

My Future Fund, Ireland's auto-enrolment retirement savings scheme, started on 1 January 2026. It covers employees aged 23–60 earning €20,000 or more a year who aren't already in a pension through payroll.

Contributions start at 1.5% from the employee and 1.5% from you, with a 0.5% State top-up. The National Automatic Enrolment Retirement Savings Authority (NAERSA) uses Revenue payroll data to enrol people.

That means accurate payroll submissions keep enrolments right. Record each employee's contribution and yours every pay period so you can check them against what NAERSA collects.

Simplify payroll record keeping with Xero

Good payroll records keep you ready for Revenue and give you answers when employees ask. Xero works with connected payroll apps, so your employees' pay data flows straight into your accounting records.

With pay costs recorded alongside the rest of your finances, your figures are ready when you need them. Choose the plan that suits your business and get one month free.

With tidy records, you spend less time on admin and more time running your business.

FAQs on payroll records

Here are answers to common questions Irish employers ask about payroll records.

How long should you keep payroll records for former employees?

The same periods apply after someone leaves, so count six years from the end of the tax year of their last payment for Revenue records. Keep the payroll submission showing their leaving date, as it's now your main record of their exit.

Do employers still issue P60s and P45s?

No, P60s and P45s were abolished on 1 January 2019 under PAYE Modernisation. Employees can get an Employment Detail Summary from Revenue's myAccount service instead, which draws on the payroll submissions you've made.

Can payroll records be kept electronically?

Yes, as long as you can reproduce them in a readable form when Revenue asks. Before you scan and bin paper originals, check with your accountant that your digital copies meet Revenue's conditions.

How do auto-enrolment deductions appear in payroll records?

The Payment of Wages Act 1991 requires you to itemise every deduction, so each employee's My Future Fund contribution shows on their payslip. Rates rise in stages to 6% each from employee and employer, plus 2% from the State, from year 10, on earnings up to €80,000.

What happens if you can't produce payroll records?

Revenue's €3,000 penalty applies unless it's proved nobody was chargeable to tax for that year. Missing records also make it harder to show what you paid if an employee brings a WRC complaint.

Related terms

• Payroll
• Payslip
• Income tax
• Audit
• General ledger

Learn more about payroll records

• Guide to hiring employees
• Small business accounting basics
• Employee retention strategy
• How to manage petty cash