PAYE Modernisation for Employers | Discover the Impact, the Challenges and What You Need To Do before the January 2019 Real-Time Deadline
The move to real-time reporting is the most significant change to the PAYE system since its introduction more than fifty years ago. From 1 January 2019, the PAYE reporting process will be simplified for employers by the elimination of the various forms (e.g. P30, P45, P46, P35, P60,) that must currently be completed while also ensuring that employee tax deductions and other contributions are correct. However, the process of implementing real-time reporting is proving to be stressful for many business owners.
Every employer will be required to provide information on employees’ pay and statutory deductions each time they pay their employees, so that Revenue has the most up to date pay and deductions details. Also, for the first time, employees will be able to view all the data reported to Revenue by their employer on their behalf.
We recently interviewed Sinead Sweeney, Change and Communication Manager for PAYE Modernisation at www.revenue.ie to obtain the information our clients need to get ready for the real-time deadline. In particular, we asked her three specific questions that are relevant to all employers.
What is the Impact of PAYE Modernisation for Employers?
#1 PAYE modernisation will ensure that payroll information will be accurate and up to date for both Employers and Employees
#2 Employees will have an increased level of transparency in respect of their PAYE information
#3 Revenue will have the most up to date information for each employee
What are the Challenges of PAYE Modernisation for Employers?
There are four specific challenges that many employers are facing with PAYE modernisation
#1 Ensuring your accounts team are ready for the changeover
#2 Reviewing your existing business processes and controls
#3 Being aware that the end of year P35 “tidy up” that many employers relied upon no longer exists
#4 Ensuring that each time you run payroll that calculations are accurate and they are submitted in real time
What does Revenue suggest Employers should do to Prepare for the Change?
Option 1: If you use payroll software make sure the payroll software will be updated to reflect the changes required for PAYE Modernisation.
Option 2: If you are outsourcing your payroll to a Payroll Bureau or Payroll Services Provider, ensure they have all the information they need to run real-time payroll for you.
The following six steps are essential to get started with PAYE Modernisation in your business:
#1 Confirm you have the right Personal Public Service (PPS) number for all your employees
#2 Ensure your employees have setup on MyAccount with Revenue
#3 Check you have an up-to-date Tax Credit Certificate for all your employees
#4 Complete the P45 process for any employees who have stopped working for you
#5 Put adequate controls in place to ensure employee benefits/notional pay are being accurately calculated during the year
#6 Be aware of your current end-of-year obligations as an employer
Nationwide Payroll Services
We have developed a strong team of qualified accountants with years of experience navigating complex payroll tax issues. We are accustomed to sorting out queries from Revenue which means it’s unlikely you’ll present us with any tax query we have not previously encountered.
Whilst we have offices in Dublin and Carlow, you don’t have to be local to us. We provide Payroll Services to over 200 clients from all corners of Ireland and we can travel to you. The most important thing is to get the ball rolling on PAYE Modernisation and book your complementary PAYE Modernisation and Payroll Review with one of our experts.