· payroll  · 3 min read

PAYE Modernisation — Which Software Supports It?

PAYE Modernisation, introduced by Revenue in January 2019, fundamentally changed how Irish employers report payroll information. Instead of submitting returns at year-end, employers must now report pay and deductions to Revenue in real time — on or before each pay date. For Irish SMEs, choosing payroll software that fully supports this system is not optional. It is a legal requirement.

What PAYE Modernisation Requires

Under the modernised system, every time you run payroll you must submit a Payroll Submission Request (PSR) to Revenue. This includes detailed breakdowns of gross pay, tax, USC, PRSI, and Local Property Tax (LPT) for each employee. Revenue processes these in real time and makes the data available to employees through their myAccount portal.

Your payroll software needs to handle several key interactions with Revenue’s systems:

  • Revenue Payroll Notification (RPN): Pulling each employee’s tax credits and rate bands before processing payroll.
  • Payroll Submission Request (PSR): Submitting pay details on or before the pay date.
  • Payroll Submission Correction: Amending previously submitted entries when errors occur.
  • Statement of Account: Reconciling monthly liabilities with Revenue.

Software that does not automate these submissions leaves you exposed to penalties and compliance gaps.

Which Software Fully Supports PAYE Modernisation?

BrightPay

BrightPay is built from the ground up for Irish payroll. It handles all PAYE Modernisation submissions directly, pulling RPNs automatically and submitting PSRs to Revenue as part of the standard payroll run. With a starting price of EUR 199 per year, it is one of the most affordable options on the market. BrightPay also generates SEPA XML payment files compatible with AIB, Bank of Ireland, PTSB, and Ulster Bank, so you can process payroll payments in a single step. BrightPay Connect adds cloud backup and employee self-service, letting staff view payslips online.

Collsoft Payroll

Collsoft is another Irish-built payroll solution with full PAYE Modernisation support. It is particularly well suited to medium-sized businesses and the construction sector, where it offers CIS and RCT handling alongside standard payroll. Collsoft integrates directly with Revenue for RPN retrieval and PSR submission, and it also supports CSO earnings and employment survey returns. At EUR 250 per year, it costs slightly more than BrightPay but is a strong choice for businesses with complex payroll needs.

Accounting Software With Payroll Add-Ons

Some accounting platforms like Sage offer built-in payroll modules with PAYE Modernisation support. Others, such as Xero and QuickBooks, require third-party payroll integrations. If you are already using one of these accounting tools, check whether its payroll add-on fully automates Revenue submissions rather than requiring manual steps.

Why Compliance Matters

Revenue actively monitors PAYE Modernisation submissions. Late or incorrect filings can trigger compliance interventions, and persistent non-compliance can result in penalties. Beyond avoiding fines, real-time reporting means your employees’ tax records are always up to date, reducing issues with tax credits, social welfare entitlements, and mortgage applications.

For most Irish SMEs, dedicated payroll software like BrightPay or Collsoft is the most reliable path to staying compliant. Both are purpose-built for the Irish market, regularly updated to reflect Revenue changes, and priced affordably for small and medium businesses.

Choose a solution that automates the full PAYE Modernisation workflow — from RPN retrieval to PSR submission — and you will spend less time on payroll admin and more time running your business.

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