PAYE MODERNISATION – ARE YOU READY?
The new PAYE Modernisation System is being introduced on the 1st January 2019.
Its impact will be daunting and you will need to be ready for its change which is mandatory for all employers.
For employers this introduces Real Time Reporting to Revenue which will necessitate changes in current payroll practices. It means that employers must report pay and statutory deductions to Revenue in respect of each employee as and when they are paid i.e. in real time.
All employers will need to engage with Revenue in advance of the 1st January 2019 to implement the new PAYE Modernisation System and ensure a smooth transition for commencement on the 1st January 2019.
ACTION BEFORE 31st OCTOBER 2018
Employee Lists need to be provided to Revenue by the 31st October 2018. Unless the lists are correct there is a real risk of employees suffering harsh Emergency Tax in the January payroll (first pay cheque after Christmas). It is important for employers to ensure that details given for all employees are accurate and that they have an updated Tax Credit Certificate (P2C) for all employees.
PAYE Modernisation should immediately have benefits for employers and employees alike, as employees who pay their tax through the PAYE System will be able to claim Tax Credits and Reliefs with more ease under the new arrangements.
Employers should now submit their Employee List to Revenue through Revenue’s Online Service (ROS).
Uploading the list will ensure that both Revenue and employer records are aligned and employers are receiving the most up to date employee information to calculate their deductions.
The deadline for uploading the list to ROS is 31st October 2018, to allow sufficient time to complete the data alignment process and amend any differences before the “go live date” of 1st January 2019. Failure to upload the Employee List runs the risk of discrepancies between employer’s lists and the Revenue’s lists not being remedied before 1st January 2019.
MAINTENANCE AND RUNNING PAYROLL 2019
Changes in the way you compile your payroll will be operative from 1st January 2019.
Each time you run a payroll in 2019 you will be required to forward a copy of it “in real time” to the Revenue through their ROS system. They will in turn complete validation checks to ensure employers are operating payroll in respect of valid employees and that only authorised tax credits are being made available to employees.
Existing obligations will be abolished. They include monthly P30s, P45s and end of year P60s and P35s.
If you run your own payroll you will need to implement all of the required changes, necessary for the introduction of the PAYE Reporting System from the 1st January 2019.
Any business that does not comply with PAYE Modernisation will be identified by Revenue and face penalties. Non Compliance will also increase the likelihood of Revenue interventions such as Audits or Aspect Queries.
OUR PAYROLL SERVICES
Preparation is essential.
Please note that our Payroll Department is on hand to advise you, should you require advice and/or wish to engage our services.
We provide payroll services to a number of our Clients. This is a seamless system whereby all of your payroll requirements are dealt with by us.
Please contact Ann O’Donoghue from this office should you wish to discuss same.