PAYE Modernisation: What does it mean for employers?

By Helen Dyulgerov ACA AITI
Head Accountant
Accounting & Bookkeeping Bureau
9th May 2018

The Revenue Commissioners have recently announced that ‘PAYE Modernisation’ will come into full effect from the 1st of January 2019. The purpose of the update is to ensure Revenue holds up-to-date information on employees and employers allowing it to monitor that the correct amount of taxes are deducted at the correct time. The main feature of the project is the introduction of ‘Real-Time Reporting’ (RTR). This will require Irish employers to calculate and report their employees’ pay and deductions as they are being paid so that Revenue receives this information in ‘Real Time’.

The modernised system will require employers to update the details of any employees leaving the employment, at the same time as they run their payroll. Additionally, details of employees commencing employment will need to be reported to Revenue before their first payday.

Employers will need to submit an electronic return containing the date of pay, amount of pay and the taxes deducted. Employers are also obligated to ensure accurate information is submitted with each payroll run. RTR may create significant challenges for employers who are not currently using a payroll software or a payroll service provider.

The modernisation of PAYE will eliminate the requirement for filling P30, P35, P45, P46 and P60 forms. This means that making adjustments via the P35 form will not be possible from 2019; the new system will allow for corrections, but this may be subject to interest or penalties.

Employers will need to take the following steps to ensure compliance:

  • Confirm all your employees are registered with Revenue
  • Confirm that their PPS numbers are correct
  • Review P2C files and ensure employee’s Tax credit certificates are up-to-date
  • Create a list of active employees with names, addresses and PPS numbers
  • Contact your payroll software provider to ensure compatibility

If you have any questions about the content covered in this article or if you would like more information on accounting or bookkeeping services, please contact the experts at Accounting & Bookkeeping Bureau on +353 1 6874523 or email