All systems go for PAYE modernisation
Real Time Reporting to be introduced from 01 January 2019 – despite concerns from small business.
Since being announced in Budget 2017 last October, the planning around the modernisation of the PAYE system in Ireland has moved at a quick pace.
In a move that will affect every employer and employee in the country, from 01 January 2019 a system of Real Time Reporting (RTR) will be introduced in relation to payroll taxes in Ireland. Essentially, what this means is that employers will be obliged to report pay, taxes deducted and any other deductions in respect of each employee every time they run their payroll, whether that be weekly or monthly.
The traditional reporting structure that employers will have been used to, such as P30, P35, P45 will cease to exist.
The Revenue Commissioners are encouraging all employers to act now to ensure that they have appropriate systems in place to allow the transition to the new regime.
Small businesses have continued to express their frustration with the implementation of the new system, with their main concerns being focused around a lack of training for those who still use manual/paper-based systems when administering their payroll, and also the lack of reliable broadband in many parts of the country.
We are always available to discuss how this will affect your business and assist you with managing the transition, ensuring the minimum of disruption once these new rules commence.
Last updated: 21st July 2017