In this update, we will look at the changes introduced by PAYE modernisation for employees and employers, what to expect in 2020 and an update on gender pay gap reporting.
1. Year-End 2019
Changes for Employees
As we are all aware, there are no longer P60's for employees. Revenue will now provide a yearly Employment Detail Summary, which will include details of all earnings for the year from all sources of employment. Financial institutions will accept this document in place of a P60 as heretofore. All employees can access the document through MyAccount on revenue.ie.
The link for employee registration is HERE.
All employers should be filing a PAYE submission on or before every payday.
Points to note for employers concerning Year-End 2019:
- No P60 – there is no obligation on the employer to provide any end of year information to employees.
- The Employment Detail Summary will replace the P60 and will be made available to all employees by Revenue through MyAccount from January 2020.
- No P35 – no end of year return registered.
2. Transition 2019/2020 – employers
Requesting Revenue Payroll Notification (RPN) for 2020
Employers should note that they have a legal obligation to request and operate the most recent RPN for each employee as provided by Revenue. An RPN should be requested under each employer registration number for the first payroll run of 2020.
It is important to note that Employers cannot use the 2019 tax credits from the 2019 RPN file and must request a new RPN for 2020. If there is no RPN available, then the emergency tax basis must be operated.
3. What's coming 2020
National Minimum Wage:
The Government have approved an increase in the National Minimum Wage,
From February 1st 2020 the minimum wage will increase by 0.30 cent from €9.80 to €10.10 per hour
Due to the increase in the minimum wage from February 1st, 2020, the PRSI ceiling of €386 per week will be increased to €395 per week.
Please refer to the table below.
Employers PRSI Rates and Bands:
Employers PRSI Changes February 2020 (with the introduction of the new minimum wage):
A1 – On earnings up to €37.99
A1 – On earnings up to €37.99
A1 – On earnings from €37.99 to €386
A1 – On earnings from €37.99 to €395
A1 – On earnings more than €386
A1 – On earnings more than €395
Gender Pay Gap Reporting
The General Scheme of Gender Pay Gap (Information) Bill 2018 is in the final stages of the legislative process and when enacted, will create new regulations requiring employers to publish gender pay gap information on their workforce.
While reporting on gender pay is an important first step in highlighting and addressing gender imbalances in the workplace, there are a number of steps organisations can take to proactively analyse and address any gender pay gaps in advance of mandatory reporting being enforced in the coming months.
Mazars can provide a bespoke gender pay gap service to your organisation to meet your specific needs regarding gender pay gap analysis and subsequent reporting, tailored to fit your requirements and budgets. Using a bespoke software tool developed by Mazars, we can effectively and securely calculate gender pay gaps for any organisation. We can also support you in the design and implementation of change initiatives and solutions to help your organisation further enhance its culture and values to become a truly diverse workplace.
Contact a member of the team today for further information on how we can support your needs.
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Director Payroll Services
(01) 449 6441
Director HR Consulting
(01) 449 6466
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PAYE Modernisation 2019
The implementation of PAYE modernisation and real-time Reporting have resulted in changes to the current operation of payroll processing. The scheme came into effect on 1 January 2019.
Gender Pay Gap Audit and Reporting Services
The Irish Human Rights and Equality Commission (Gender Pay Gap Information) Bill 2017 is on track for implementation in Ireland in 2019. This legislation requires employers to calculate and report on their gender pay information annually and will mirror the UK model, which introduced gender pay gap reporting in 2018.