Pay As You Earn (PAYE)

As the name implies it’s a Pay As You Earn system of taxation. Employers are obliged to deduct tax from your earnings and pay it over to the Revenue on a monthly basis. The amounts due for PRSI (Pay Related Social Insurance) and the Universal Social Charge are also collected through the PAYE system.

Employee’s have to get a tax credit certificate form the tax office and this is the form that the employer uses to calculate your tax deductions.