PAYE Modernisation – Update

As employers will be aware, PAYE Modernisation came into operation on 1 January 2019. Revenue has identified some issues that have occurred in the first few months of PAYE Modernisation.

While the majority of employers have transitioned successfully to the new system, Revenue has noted that some employers are:

  • Submitting duplicates of payroll data to Revenue.
  • Creating multiple employments for the same employee.
  • Incorrectly including cessation dates for employees as part of the payroll submissions.
  • Failing to ensure that the most recent RPN is applied.
  • Not operating emergency tax correctly.
  • Failing to deduct USC where an employee is not USC exempt.
  • Paying tax liabilities twice inadvertently, by using both Variable Direct Debit and setting up a ROS Debit Instruction.

The issues above can result in an incorrect PAYE liability being reported to Revenue and the possibility of unnecessary Revenue interventions.

Employees also have real-time access to their pay and tax details on MyAccount and will be able to verify that the Revenue pay and tax details reconcile with their payslip. As such, employees are likely to query any discrepancies with their employer.

Revenue will continue to assist any employer who is having genuine difficulties in complying with PAYE Modernisation; however, if employers fail to engage with Revenue or consistently fail to comply with the regulations, Revenue may apply a penalty of €4,000 for every breach.

If you have any questions concerning the above, or if you would like to discuss this topic further, please contact a member of the Mazars employment tax team below:

Staff Member

Position

Email

Telephone

Ken Killoran

Tax Director

kkilloran@mazars.ie

01 4494451

John Kelly

Tax Senior Manager

John.kelly@mazars.ie

01 4494495

Diana Barton

Tax Manager

dbarton@mazars.ie

01 4496457

June 2019

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