What is PAYE Modernisation?
Coming into effect on the 1st January 2019, PAYE Modernisation 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 as has been the case since the introduction of PAYE in 1960’s.
Reporting forms well known to employers such as P30, P35 and P45 will no longer be in use in 2019.
In addition 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.
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 is a Software system that is recognised by Revenue and complies with the latest payroll legislation.
How do I check my Sage Payroll data is ready for PAYE Modernisation?
- Check your Sage Payroll software is up to date
- Check company information
- Validate your Payroll
- Record Tax Advisor Identification Number (TAIN) if applicable
- Check employee records
- Submit employees list to ROS
For More information on PAYE Modernisation
Call Malcolm on (071) 9146815 or Email email@example.com