PAYE Modernisation - Getting ready for Real Time Reporting of payroll information

What is it?

Revenue is introducing a new PAYE regime for employers from 1 January 2019. From this date, employers will have to report payroll information to Revenue in ‘real-time’ i.e. each time they pay their employees.

Why is it being introduced?

The current PAYE reporting system was introduced almost 60 years ago and is not seen as being fit for purpose in today’s working environment. The new regime should result in greater reporting accuracy and will also be able to cater to a wider variety of payroll arrangements.

Are there any areas of concern?

Revenue engaged in a detailed consultation with employers/representative bodies and various concerns were raised the main ones being:

• Increased administration costs
• Increased number of deadlines
• Staff training
• Ensuring that any payroll software being used facilitates the modernised system
• Access to broadband

Revenue have stated that they will continue to work with employers/representative bodies to ensure that the final design of the regime “can be seamlessly integrated in to the payroll process”.

What can I do now as an employer to get ready?

While the final design of the regime is still being finalised there are some steps you can take now which should simplify the eventual changeover in 2019:

• Make sure you are registered as an employer with Revenue, if necessary
• Confirm that you have the correct Personal Public Service (PPS) number for all your employees
• Make sure all your employees are registered with you
• Complete Form P45 for all employees who have left their employment with you

How can we help?

At TaxAssist Accountants we can assist you with any preparation that needs to be undertaken prior to the introduction of Real Time Reporting, including reviewing your current payroll system and its likely compatibility with the new regime. We also provide outsourced payroll services to thousands of clients across the country, so why not arrange a free initial consultation today to see what we can do for you.

Date published 19 Oct 2017

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.