Dublin, Ireland – October 2026: Hiring the first employee is an important step for any growing business. It also brings new responsibilities for the business owner, particularly around payroll, tax reporting and employee records. Forti is highlighting some of the key payroll considerations Irish small businesses should understand before putting their first employee on the payroll.

For a business owner, employing someone involves more than agreeing on a salary. Employers need to make sure employees are paid correctly and that the relevant payroll information is reported to Revenue on time.

Registering for Payroll

Before paying employees, a business generally needs to be registered as an employer with Revenue. Once the payroll is set up, employers need to calculate the appropriate deductions and report payroll information correctly.

This can include:

PAYE income tax
Universal Social Charge (USC)
Employee and employer PRSI
Employee payslips
Payroll submissions to Revenue
Relevant employee and payroll records

Getting these processes organised from the beginning can help businesses avoid unnecessary payroll problems as their team grows.

Understanding Employer Costs

Salary is not always the full cost of employing someone. Businesses may also need to consider employer PRSI and other employment-related costs when preparing their budget.

For small businesses working with tight cash flow, understanding the total cost of employment before making a hiring decision can help with financial planning.

Director Payroll Can Also Require Attention

Small companies often start with a director or owner before hiring additional employees. Director payroll can have specific considerations, including the appropriate PRSI treatment depending on the individual's circumstances.

Forti recommends reviewing the director's position before the first payroll run rather than making assumptions about the applicable PRSI class.

Keeping Payroll Records Accurate

Payroll information can change regularly. New employees may join, existing employees may leave, salaries can change and benefits may need to be reported.

Businesses should therefore have a clear process for handling starters, leavers, salary changes, benefits and other payroll information.

Forti's small business payroll service supports Irish businesses with payroll calculations, electronic payslips, Revenue submissions, director payroll, PRSI reviews, payroll changes and other payroll administration.

Making the First Hire Easier

For a small business owner, managing payroll alongside sales, customers and daily operations can quickly become time-consuming. Having the right payroll process in place from the first employee can make it easier to manage future growth.

Forti provides payroll and accounting services for businesses in Ireland, helping business owners manage their payroll responsibilities while keeping their financial administration organised.

Businesses preparing to hire their first employee can review their payroll requirements in advance and make sure they understand their employer obligations before the first payday.

About Forti

Forti is an accounting firm based in Dublin, Ireland, providing accounting, payroll, tax and business support services to Irish businesses. The firm works with businesses at different stages, from new companies and sole traders to established organisations.

For more information about small business payroll services, visit Forti's payroll services page.