Paying yourself a salary from your limited company
A limited company's money is not the owner's money, so it is withdrawn as salary, dividends or other compensation. A salary builds up your pension and social security, so it is worth thinking carefully about the amount. This guide covers the steps of paying a salary.
You will need
- Your own tax card
- YEL insurance
- Payroll software or an accounting firm
- The company's bank account
- Information on the company's cash position
Steps
Check your insurance status
If you own more than 30% of the company alone, or more than 50% together with your family, and work in a managerial position, you are usually covered by YEL rather than TyEL. Check with your pension insurance company.
Set the salary level
Get your tax card
Prepare a payslip
Pay the salary
Report to the Incomes Register
Pay the employer contributions
Review the overall picture every year
The full guide with every step is for members. Try 7 days for €0.99.
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