Tax Compliance Rules for Ireland Allowances and Deductions

Before you can add an allowance or deduction, you must configure a tax compliance rule. Tax compliance rules are values that determine how allowances are taxed and how deductions are applied to an employee's wages. You can view and create tax compliance rules in Payroll Set-up > Earnings and Deductions in the Tax Compliance Rules tab.

This topic covers the settings specific for creating tax compliance rules for Ireland allowances and deductions.

For general information about tax compliance rules, see Tax Compliance Rules in the Dayforce Implementation Guide.

For general information about creating allowances (earnings) and deductions, see Earnings and Deductions in Payroll Setup in the Dayforce Implementation Guide.

Ireland Tax Compliance Rule Settings for Allowances

Tax Compliance rule settings for Ireland allowances

General Section
PRSI - Employee	Indicate that the allowance applies to employee pay-related social insurance (PRSI) tax contributions.
PRSI - Employer	Indicate that the allowance applies to employer pay-related social insurance (PRSI) tax contributions.
Tax	Flag the allowance as taxable and subject to employee tax deductions.
USC	Flag the allowance as subject to Universal Social Charge (USC) tax on income.
PSR Reporting
Medical Insurance	Report a payroll submission request (PSR) for medical insurance to Ireland Revenue each time a pay run is performed.
Taxable Lump Sum	Indicate that the allowance is for a taxable retirement lump sum that is subject to PSR reporting. For more information about retirement lump sum payments, see https://www.revenue.ie/en/jobs-and-pensions/pension/private/retirement-lump-sums.aspx
Non-Taxable Lump Sum	Indicate that the allowance is for a non-taxable retirement lump sum that is subject to PSR reporting. For more information about retirement lump sum payments, see https://www.revenue.ie/en/jobs-and-pensions/pension/private/retirement-lump-sums.aspx
Share Based Remuneration	Report employee shared-based remuneration in Payroll Submission Return (PSR) files.

Ireland Tax Compliance Rule Settings for Deductions

Tax Compliance rule settings for Ireland Deductions

General
Tax Type	Define how the deduction impacts employee earnings and taxes: Memo Deduction, Post-Tax, Pre-Tax, or Salary Sacrifice.
Pension	Flag the deduction as a pension contribution.
PSR Reporting
PRSA	Indicate that the deduction is subject to a Personal Retirement Savings Account (PRSA) model of pension, designed for self-employed people or those employees who aren’t a member of an occupational pension scheme.
RAC	Indicate that the deduction is for Retirement Annuity Contract (RAC) insurance contract contributions.
AVC	Indicate that the deduction is for an Additional Voluntary Contribution (AVC) secondary pension scheme.
ASC	Indicate that the deduction is for an Additional Superannuation Contribution (ASC).
RBS	Indicate that the deduction is for a Retirement Benefit Scheme (RBS).
PEPP	Indicate that the deduction is for Pan-European Personal Pension Products (PEPPs) contributions.