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.
Below is a summary of the effects of real-time reporting
- P30s, P45s, P46s, P60s and end of year returns (P35s) have ceased
- The current tax deduction card (P2C) has been replaced with a Revenue Payroll Notification (RPN)
- Revenue will receive real-time interfaces of taxable Department of Employment Affairs and Social Protection income. This income will reduce tax credits/rate bands, and an updated RPN will be made available
- Employers must notify Revenue at the same time as, or in advance of, any payment to employees by way of a “Payroll Submission Request”. For each employee, the employer must confirm the amount paid, the date of payment and the amount of tax deductible or repayable. Following month end Revenue will issue a monthly statement summarising the Payroll Submission Requests received during the month. An employer return will be submitted by the 14th of the following month, specifying the total PAYE, USC, PRSI deducted from individual employees. The statement from Revenue will be deemed to be the return unless the employer amends the statement in advance of the deadline. Payment of all amounts due to the Collector General must be made by the 23rd of that month (where the employer files and pays via ROS)
- Any employers who historically wait to “clean up” the operation of PAYE on payments to employees until close to the P35 deadline will become more visible to Revenue under the new regime and will potentially face penalties for non-compliance
- If PAYE is not withheld correctly by employers on payments made to employees, the tax will be recouped by Revenue on a grossed-up basis
- All data received by Revenue from employers, including corrections and the timing of submissions, will feed into Revenue’s risk analysis systems, which could lead to more Revenue PAYE audits of employers
- Revenue is contacting employers who appear not to have informed them of new employees. We understand that Revenue has issued letters to the ROS inbox of employers concerning this matter
- We also understand that Revenue will be writing to all employers to request a full listing of all employees currently working for an employer. This is to facilitate a “clean up” of the names of the employees that Revenue have on their records, for every employer
- Revenue is looking for a seamless integration of reporting into the payroll process
Revenue recommends that employers should start preparing for real-time reporting now and consider the following points
- Have you the right Personal Public Service (PPS) number for all your employees?
- Have you registered your employees with Revenue?
- Have you an up-to-date tax credit certificate for all your employees?
- Have you completed the P45 process for any employees who no longer work for you?
- Have you adequate controls in place to ensure that notional pay is being accurately calculated during the year?
- Are you aware of your duties as an employer at the end of the year?
Advantages of outsourcing your payroll to Mazars
- Confidentiality, quality and continuity of service
- Flexible, cost-effective solution to reduce administration costs and free your staff to concentrate on the core business activities
- Advice about benefit in kind, share schemes, redundancy, termination payments, GDPR & Revenue PAYE Modernisation
- Access to a team of professionals providing a payroll solution that adds real value to your business
- Complete assurance in the increasingly complex regulatory environment, that you are fully compliant with all statutory obligations
- International payroll compliance with one point of contact in the local Irish office. As Mazars is a truly integrated firm we work together as one team to offer a seamless global payroll service
- We provide a tailored service which is flexible and scalable to help you react quickly to changing market conditions or seasonal variations
- Guarantee that all our fully trained payroll staff are qualified IPASS professionals
Payroll Outsourcing with Mazars