PAYE Modernisation!

Are you ready for PAYE Modernisation?

More change, more headaches and an additional compliance burden on employers and SME’s! As you struggle through the day to day of keeping your business moving forward and trying to grow, PAYE Modernisation has been thrown into the mix!

As you are probably aware PAYE Modernisation will be introduced on the 1st January 2019. This is the most significant reform of the PAYE since its introduction since 1960 – so you could say it is well overdue!

What is PAYE Modernisation?

Employers will need to calculate and report their employees’ pay and deductions as they are being paid. The current position is that this is only reported to revenue once a year or when an employee leaves employment. The new system is effectively Real Time Reporting. This is good news for the employee and will be good for employers also – once the set up phase has passed!

Help, what do I do?

The first step in this process is to consider if, as a employer, you have the following:

  • Do you have correct PPS numbers for all employees?
  • Have all employees of the company been notified to Revenue?
  • Have any ex-employees been issued a P45?

Once you are happy that you have completed the above, the next step is to upload your list of employees to the Revenue. This can be done through your online services on ros.ie. 

The list must include:

  • employees who are currently in your employment (including directors)
  • employees on long term leave such as maternity leave or sick leave
  • pensioners in receipt of payments from you
  • seasonal or temporary employees for whom you have not completed a P45
  • employees on a career break for whom you have not issued a P45
  • employees for whom you have received PAYE Exclusion Order.

Revenue originally had a deadline date of 31 October 2018 for this to be complete but due to the small matter of 78,000 employers not having it done by that date…….they have extended the date!

From the 1st of January 2019, there will be a number of key changes that will come into effect.

  • P30, P45, P60, P46 & P35 are no longer relevant
  • P2C Cert (Tax Credit Cert) will be replaced with a RPN (Revenue Payroll Notification)
  • A statement will issue to the Employers/Payroll Provider with the total tax due
  • the total tax due above will be the amount due for payment on the 23rd of the following month
  • Employees can view their payroll on line and request information
  • The return will be made to the revenue each time a payroll is completed

As always the team here at Comerford Foley are here to assist with any queries or questions you may have about these Payroll changes. We hope to run some seminars (an excuse to have a nice cup of coffee while you learn a little) in December to help and also offer a health check to ensure you are as ready as you need to be for PAYE Modernisation! As ever…don’t panic, stay focused on growing your business and allow us worry about this for you!