Christmas Payroll Checklist: 8 Essential Steps for a Stress-Free Year-End

We’re making a list for you to check twice – red suit entirely non-essential.  

Year-end can see us all bewitched, bedazzled, and bewildered with deadlines, personal commitments, and the trials of cold weather and wellness on all of our minds.  

We understand! Believe us, no one understands better than we do. With that in mind, we’ve put together a quick checklist for you to refer to, to make sure you’re in great shape for Christmas. 

• Review statutory entitlements and ensure your company policy aligns with legal requirements to make sure you’re fully compliant!
• Check how holiday pay is calculated for full-time, part-time, and seasonal staff - entitlements often vary based on hours worked.
• Record any carry-over leave from previous periods if this is your company’s policy!
• If your business closes over Christmas, clarify how this impacts leave balances and communicate clearly to avoid confusion among your staff. 

 
See also: How To Manage Annual Leave over Christmas | SD Worx 

• Review tax implications for seasonal rewards: cash bonuses, vouchers, and gifts may fall under Benefit-in-Kind (BIK) rules.
• Remember the update to  the Small Benefit Exemption (up to €1,500 across five benefits per year, non-cash only).
• If offering vouchers, ensure theymeet Revenue guidelines for tax-free treatment.
• Schedule payments before payroll cut-off dates and factor in early payroll runs.
• Communicate timelines and any tax implications to employees upfront. 

See also: Taxation of Christmas Bonuses for Irish Employers | SD Worx 

• Check names, PPS numbers, and bank details for accuracy.
• Ensure new hires are correctly set up with tax credits and PRSI class applied.
• Remind employees to update personal details before year-end deadlines.
• Ensureemployer registration with MyFutureFund is complete. The Portal for registration opened in December with Auto-enrolment set to commence 1 Jan 2026

• Validate PAYE, PRSI, and USC calculations for accuracy.
• Check BIK reporting for company cars, health insurance, or other taxable benefits.
• Ensure tax credits and exemptions are up to date.
• Prepare for Revenue reporting deadlines and run reconciliation reports to catch discrepancies early.

See also: Free Benefit in Kind (BIK) Calculator | SD Worx 

• Adjust payroll schedules for early payments and communicate deadlines internally.
• Coordinate with banks and finance teams to avoid delays during reduced holiday hours.
• Confirm all overtime, bonuses, and holiday pay are submitted before revised cut-off dates.
• Notify employees early so they can plan their finances for the festive season. 

• Run reconciliation reports and validate year-to-date figures for earnings, deductions, and tax credits.
• Prepare audit documentation, including payslips, tax records, and BIK details.
• Confirm all Revenue submissions are filed correctly and on time. 

• Share reminders about holiday pay rules and payroll dates well in advance.
• Provide FAQs for common seasonal queries, such as bonus taxation and payslip availability.
• Make sure employees know who to contact for payroll queries during the holiday period. 

• If employees have been enrolled into MyFutureFund for the first time, employers have a legal obligation to inform them in writing of their enrolment date. More details here. 

• Update payroll systems with new tax bands, credits, and PRSI thresholds.
• Schedule training for payroll teams on legislative changes or system updates.
• Review year-end challenges and implement improvements for a smoother start to the new year. 

With this checklist in hand, you can keep payroll on track and avoid any festive surprises – except the nice ones. A little preparation now means a stress-free season for you and your team, and a smooth start to the new year. Tick off these steps, pour yourself a well-earned hot chocolate, and enjoy the celebrations knowing payroll is sorted!