PAYE Modernisation comes into effect at the beginning of 2019. It will significantly change the reporting of PAYE and will affect every employer and employee in Ireland.
Every time an employer runs their payroll, they will be required under law to report pay and deductions for each employee, instead of once a year using the P35 as has been the case since the introduction of PAYE. Reporting forms well known to employers such as P30, P35 and P45 will no longer be in use.
Additionally to reporting pay and tax deductions, employers will report details on new employees prior to their first pay day as well as details on those leaving employment.
Will it change how I calculate PAYE?
The calculation of PAYE is not changing, employers will simply have to report it more regularly than before. It is a similar idea or system to that in the UK – RTI (Real Time Information) – where employers must file electronically the returns on each payroll run.
Why are Revenue introducing this change?
Having up-to-date information will permit Revenue to give accurate and efficient instructions to businesses. This will also result in more accurate tax payments, meaning less under or overpayments of tax.
It is advisable for businesses to start getting ready now for PAYE Modernisation and ensure they have correct systems in place.
The belief is that PAYE Modernisation will eventually streamline reporting to Revenue and make PAYE submissions more efficient. It should also reduce the administrative burden that the current system creates for businesses.
Sage Payroll and PAYE Modernisation
Sage Payroll (formerly known as Sage Micropay) is a payroll system that is recognised by Revenue and complies with the latest payroll legislation. Their developers are already working on updates to ensure the software is compliant with the new regime. Sage are due to release these updates between November 2018 – January 2019.
For More information on Sage Payroll
Call Malcolm on (071) 9146815 or Email email@example.com