Since the onset of Covid 19 there are now many employees working remotely in Ireland for a foriegn employer, usually by choice and at the discretion of their employer. The most recent Revenue Guidance (as at November 2020) indicates that Revenue will not seek to enforce Irish payroll obligations for foreign employers in genuine cases where an employee was working abroad for a foreign entity prior to COVID-19 but relocates temporarily to the State during the COVID-19 period and performs duties for his or her foreign employer while in the State.
However if the intention is for the arrangement to continue permanently employers should consider the following tax issues:
- their obligation to register for and withhold Irish PAYE from their employee’s salary;
- their obligation to pay employer’s PRSI on the employee salary;
- the interaction with tax and social security withholding in the employee’s previous location.