Irish Payroll Compliance

PAYE Modernisation - Which Software Supports It?

Every Irish employer must report payroll to Revenue in real time under PAYE Modernisation, mandatory since January 2019. Here is which software handles this natively - and what to check before you commit.

What PAYE Modernisation requires from your software

Revenue's real-time reporting system has specific technical requirements your payroll software must meet.

Payroll Submission Request (PSR) filing

Software must generate and submit a PSR to Revenue on or before each pay date. This includes PAYE, PRSI (employee and employer), and USC for every employee in that pay run.

Direct ROS integration

Submissions must go through Revenue Online Service (ROS). Software must connect to ROS directly - manual XML uploads are possible but not practical for recurring payrolls.

Employee tax credit certificates (RPNs)

Software must pull Revenue Payroll Notifications (RPNs) from ROS before each pay run to apply the correct tax credits, cut-off points, and USC rates for each employee.

Employer Reporting Requirements (ERR)

Since 2024, employers must also report certain expenses and benefits (small benefits, remote working payments, travel and subsistence) through ERR. PAYE-compliant software should support this.

Verified from vendor data

Which payroll software supports PAYE Modernisation?

Support status based on Vendors.ie vendor data, last verified April 2026. Always confirm with the vendor before purchasing.

BrightPay

Full PAYE Modernisation support with direct ROS integration. Built in Dublin by Thesaurus Software. Includes PSR filing, RPN retrieval, and ERR reporting. BrightPay Connect adds cloud backup and employee self-service. From €229/year.

Collsoft Payroll

Full PAYE Modernisation and ROS integration. Strong in construction with RCT and CSO reporting. SEPA XML payment files for AIB, BOI, and PTSB. Particularly suited to 6-50 employee businesses. From €199/year.

Thesaurus Payroll Manager

Full PAYE Modernisation with direct ROS integration. Made by the same Dublin company as BrightPay. Desktop-only, no cloud layer. The most affordable fully compliant Irish payroll option. From €229/year.

Sage (Business Cloud Accounting)

PAYE Modernisation supported natively. One of the few accounting platforms (not just payroll) with built-in PAYE compliance. Also supports RCT and Reverse Charge VAT. Best for businesses needing accounting and payroll in one product.

Payroller

PAYE Modernisation and Revenue integration confirmed. Cloud-based with mobile access. Shorter Irish compliance track record than the established desktop tools. Verify auto-enrolment and ERR support directly. Free tier available.

Xero / QuickBooks

Neither supports PAYE Modernisation. These are accounting tools, not payroll systems. Irish businesses using either must connect a dedicated Irish payroll tool (BrightPay or Thesaurus integrate with both).

What to check when evaluating payroll software for PAYE Modernisation

Beyond confirming PAYE Modernisation support, verify these points before committing.

  1. 1

    ROS digital certificate handling

    Your software needs your ROS digital certificate to submit PSRs. Check whether the software stores the certificate locally (desktop) or whether you upload it per session (cloud). BrightPay and Collsoft handle this natively.

  2. 2

    RPN retrieval frequency

    Revenue updates RPNs in real time when employees change jobs or update tax credits. Your software should retrieve fresh RPNs before every pay run, not just at the start of the tax year.

  3. 3

    ERR (Employer Reporting Requirements) support

    Since January 2024, certain benefits and expenses must be reported via ERR alongside your PSR. Check whether your software includes ERR reporting or whether it requires a separate process.

  4. 4

    Auto-enrolment readiness

    Ireland's Auto-Enrolment pension scheme launched on 1 January 2026. Ask your payroll provider whether auto-enrolment contribution calculations and NAERSA reporting are included in your current licence or will require an upgrade.

  5. 5

    Support availability

    PAYE Modernisation submissions have hard deadlines - on or before pay date. If a submission fails, you need support fast. Prefer Irish-based or Irish-hours support. BrightPay, Collsoft, and Thesaurus all offer Irish phone and email support.

For Irish employers and accountants

PAYE Modernisation - frequently asked questions

What is PAYE Modernisation?
PAYE Modernisation is Revenue's real-time payroll reporting system, mandatory for all Irish employers since 1 January 2019. Employers must submit a Payroll Submission Request (PSR) to Revenue on or before each pay date - not at year-end. This replaced the old P30, P45, and P60 system.
Which payroll software is fully compliant with PAYE Modernisation?
BrightPay, Collsoft, and Thesaurus Payroll Manager all support PAYE Modernisation natively, with direct ROS (Revenue Online Service) integration for PSR submissions. Sage (Business Cloud Accounting) also supports PAYE Modernisation. Payroller supports PAYE Modernisation reporting but has a shorter compliance track record in Ireland.
Does Xero or QuickBooks support PAYE Modernisation?
No. Xero and QuickBooks Online are accounting platforms, not payroll systems. Neither supports PAYE Modernisation directly. Irish businesses using Xero or QuickBooks should pair them with a dedicated Irish payroll tool such as BrightPay or Thesaurus, which integrate with both.
What happens if my payroll software does not support PAYE Modernisation?
Employers who fail to file PSRs on time face late submission surcharges and potential Revenue audits. Revenue's PAYE Modernisation system is fully automated - non-compliant submissions are flagged immediately. You cannot manually file PSRs without software; you need either compliant payroll software or to use a Revenue Online Service (ROS) agent.
What is a Payroll Submission Request (PSR)?
A PSR is the file your payroll software sends to Revenue on or before each pay date. It includes each employee's gross pay, PAYE deducted, PRSI (both employee and employer), USC, and Local Property Tax (LPT) deductions at source where applicable. Revenue uses it to update each employee's tax record in real time via their myAccount portal.
What is a Payroll Submission Correction and when is it used?
A Payroll Submission Correction is how you amend a PSR that was already filed - for example, to fix a pay error, correct an employee's PPS number, or adjust a deduction. BrightPay, Collsoft, Thesaurus, and Sage all handle corrections through the same ROS connection used for original PSRs. You cannot reverse a correction once filed, so review carefully before submitting.
How does the Statement of Account work for Irish employers?
Revenue publishes a monthly Statement of Account summarising your PAYE, PRSI, USC, and LPT liabilities based on the PSRs you filed that month. Payment is due by the 14th of the following month (23rd for ROS direct debit). Good payroll software lets you reconcile its internal totals to the Revenue statement before you pay - any mismatch usually signals a missed PSR, a late correction, or a tax-credit issue you should investigate immediately.
Does PAYE Modernisation software also handle auto-enrolment?
Not automatically. PAYE Modernisation and auto-enrolment are separate Revenue obligations. BrightPay and Collsoft have both confirmed auto-enrolment readiness for the 2025 scheme launch. Thesaurus Payroll is developed by the same company as BrightPay and is expected to follow. Verify auto-enrolment support directly with your payroll provider before the scheme goes live.
Can I use spreadsheets instead of payroll software?
No. Revenue requires PSR submissions in a specific XML format via ROS. You need either a compliant payroll application or an accountant/payroll bureau to file on your behalf. Spreadsheets cannot produce compliant PSR files.

Disclaimer

This page is published for general informational purposes only and is not tax, accounting, or legal advice. Verify all regulatory information at Revenue.ie or with a qualified Irish accountant before relying on it for compliance decisions.

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