LPT: Are small employers obliged to operate the LPT through payroll?

Are small employers obliged to operate the LPT through payroll?

I know a smallish traditional employer who has phased out all employee deductions (VHI, Insurance, Credit Union etc) over the last number of years. They were long standing arrangements but were very difficult to administer.

Is she obliged to facilitate LPT deductions and all the headaches associated with that payroll deduction or can she tell her employees and revenue that she will only deduct income taxes and court ordered deductions?

According to Revenue, she will be required to allow LPT deductions.