Your Final Payroll Run of 2026: A Year-End Checklist for Irish Employers

At Clinton Higgins we believe the last payroll run of the year deserves as much attention as the first one in January. Get it wrong and you are correcting errors well into 2027. Get it right and your business starts the new tax year clean, compliant and ready to go.

December payroll is not just another pay cycle. It is the point where Benefit in Kind gets trued up, vouchers get reconciled against the Small Benefit Exemption, and your payroll software needs to be ready for new rates from 1 January. Here is a clear sequence to work through before you submit your final run.

1. Check whether Week 53 applies to you

If you run a weekly payroll and a pay day falls on 31 December 2026, that payment is taxed on a Week 1 basis rather than the usual cumulative basis. This only affects weekly, fortnightly or four-weekly payrolls where a pay date lands on the last day of the year. Monthly payrolls are not affected. Check your pay calendar now so there are no surprises when Revenue queries a payslip in January.

2. True up Benefit in Kind

Before your final submission, review every BIK you have provided during the year:

• Company cars and vans, including any changes in business mileage that affect the taxable value
• Preferential loans to directors or employees
• Medical insurance paid on an employee’s behalf
• Accommodation or other non-cash benefits

Make sure the cumulative BIK figure on each employee’s record matches what was actually provided, not just what was estimated earlier in the year. Any shortfall needs to go through payroll before your last submission, not corrected afterwards.

3. Reconcile the Small Benefit Exemption

The Small Benefit Exemption lets you give employees up to five non-cash vouchers or benefits a year, tax free, up to a combined limit of €1,500. Before year end:

• Count how many qualifying benefits each employee has received this year
• Confirm none were paid in cash, which disqualifies the exemption entirely
• Check that the combined value for any one employee has not crept over €1,500
• Make sure anything over the limit has been taxed correctly through payroll

This is one of the most common year-end slip-ups. A well-meant Christmas bonus that tips someone over the limit, or that is paid partly in cash, can create an unexpected BIK liability for both employer and employee.

4. Confirm remote working and expense payments

If you pay the tax-free remote working allowance of €3.20 a day, check your records match the days actually worked from home. Keep this documentation on file, as Revenue can ask to see it.

5. Prepare for new tax year rates

Several figures change from 1 January 2027, and your payroll software needs to reflect them before the first run of the new year:

• Updated tax credits and standard rate bands
• Revised USC thresholds
• The new national minimum wage, rising to €14.94 an hour

Employee and employer PRSI rates are not changing at 1 January, the next shift happens from 1 October 2027, but it is worth confirming your software is applying the correct rate regardless.

6. Check auto-enrolment readiness

If you have employees aged between 23 and 60 earning over €20,000 who are not in a qualifying pension scheme, they fall within My Future Fund auto-enrolment. Use the quiet period before year end to confirm which employees this applies to, and that your payroll system is set up to handle employer contributions alongside the employee share and state top-up.

7. Confirm employee details before the new tax year

A quick data check now saves headaches later:

• PPSNs and employment IDs are correct and match Revenue’s records
• Addresses are current, particularly for anyone who moved during the year
• Any employees who left during the year have been properly ceased
• New starters have been registered correctly

Finish the year with confidence

A careful final payroll run protects both you and your employees from errors that are far harder to unpick once the new tax year is underway. If you would like a second pair of eyes on your year-end payroll before you submit, get in touch with Clinton Higgins. Call us on , email info@clintonhiggins.ie, or visit clintonhiggins.ie to arrange a review before your last submission of 2026.

Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has
been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute
financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the
publisher nor the authors accept liability for any loss arising from reliance on this material.