12th October 2018

PAYE Modernisation is going live on 1st January 2019. You can read our introduction to PAYE Mondernisation by clicking here.

In this update we focus on:

• List of Employees
• Frequently asked questions
• Payroll Agent Checklist
• Employer Checklist

List of Employees

A list of employees is required to be uploaded to Revenue Online Services (ROS) by 31st October 2018. Where we look after the processing of your payroll, we will look after this filing. Where you, or a 3rd party look after the processing of your payroll, it is your responsibility to ensure that the List of Employees is returned to Revenue. You can check if the list has been uploaded to Revenue by logging into ROS and if the yellow banner is visible at the top of the screen then the list has not yet been filed.

If we do not look after your payroll, we are still available to give you any assistance required. However, please note that as 31st October is also the income tax filing deadline, we will not be issuing any further reminders to clients that need to file their list of employees.

Frequently Asked Questions

1. I have only one employee/I am not a mandatory e-Filer through ROS?

PAYE modernisation is being implemented with the requirement that every PAYE worker can log into www.revenue.ie/myaccount and view their payslips in real-time for each pay date.

Employers must meet this obligation by one of the following methods (in order of preference):

• Payroll program integration
• ROS registered clients without a payroll program
• Non-registered clients with no PC access will be allowed do a paper submission which must be posted to Revenue at each pay date.

The idea of not being a mandatory e-filer in 2018, due to being a small sole trader or who is otherwise completing a paper P30 return and posting to Revenue has no implications on the employer’s obligations under PAYE modernisation.

2. Are Revenue taking the tax payments earlier than before?

In summary there is no change to the payment of payroll taxes to Revenue:

• Monthly payment (actual)
• Monthly direct debit
• Quarterly payment (actual)

When Revenue state that they want the gross pay, and taxes returned to them at each pay date, it is only the data which they are seeking in order to update each employee’s record. Once Revenue receive this at each pay date, and with the exception of any errors, the tax due will already have been declared to Revenue. In a slight change to previous, the employer has until the 14th of the following month to review Revenue’s records and confirm that the details they hold are correct, otherwise any changes after this date will be deemed a late amendment subject to interest. Payments will still be taken on or after the 23rd of the month.

One optional new feature is the Variable Direct Debit, where instead of logging into ROS to manually put through a payment, you can give Revenue authority to automatically take the correct tax liability on the 23rd of each month.

PAYE Agent Checklist

In Revenue’s circular in September, they advised all employers to check with their payroll providers to ensure they are PAYE Mondersiation ready. We can confirm that we have attended the recent Revenue PAYE Modernisation Seminars and and our payroll software providers will be ready for the launch on 1st January 2019. Some of the finer details will be worked out closer to the end of 2018 when we have the actual payroll software for 2019 made available to us.

Employer Checklist

We have prepared the following checklist relevant to both our payroll clients, and those that prepare their own payroll:

• Have I uploaded my List of Employees to ROS?
• Where Revenue removed employee tax credit certs. that had left the employment, have I filed the P45 for these employees?
• Have I registered for ROS? Please note this may take some time to complete, and you will not be able to comply with your obligations under PAYE Modernisation without it. Don’t get caught out in the Christmas post.
• Where I prepare my own payroll, will I need expert assistance in the first week in January? Have I booked my accountant’s time in?
• Have I encouraged all employees to register for an account at www.revenue.ie/myaccount. This will avoid confusion when at the end of 2019, information which previously was provided through a P60, will only be available through Revenue’s online account.

Should you have any queries on PAYE Mondernisation please do not hesitate to contact us.

30th March 2018

PAYE Modernisation comes into effect from 1st January 2019, however if you are an employer it is important at this stage that you are informed of the change. What you need to know depends on whether we prepare your payroll on your behalf, of if you prepare your own payroll:

Royal Canal FCS Payroll Bureau: Where we prepare your payroll on your behalf, you will not be impacted directly by the change, however please be aware that Revenue will run a number of postal employer information campaigns throughout 2018 and we have prepared this article to give you comfort that everything is in hand.

Please note it is the employer’s responsibility under PAYE Modernisation to ensure compliance. This compliance includes processing the payroll and submitting the pay details to Revenue as part of each pay run. If employees are paid prior to running the payroll this will be a non-compliance event subject to penalties from Revenue.

In-House Payroll Service: If you prepare your own payroll, there are some preparatory steps in 2018 that you need to be aware of. From 1st January 2019 you will need to ensure you are compliant with PAYE Modernisation – please read on for further details.

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Disclaimer: This information is provided as a general guide based on the current information provided by Revenue. As Revenue are still finalising some of the finer details, this information is subject to change and you are encouraged to check back to this page at a later stage for any updates.

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STEP BY STEP GUIDE TO PAYE MODERNISATION

PAYE Modernisation represents real-time reporting of each payroll processed to Revenue. This will allow Revenue deal with employee tax issues more efficiently.

• April 2018: Revenue’s first stage postal campaign to employers will begin. All employers will receive a letter from Revenue outlining what PAYE Modernisation is all about. In summary, PAYE Modernisation means Revenue will hold real-time payslip details for all employees, facilitated by employers uploading an electronic submission to Revenue, after each pay run, with details similar to the current annual P35 return.  We expect that the correspondence from Revenue will outline what employers need to be doing to ensure their data is ready for PAYE modernisation (see below for further details).

• Are My Payroll Processes PAYE Modernisation Ready?: The good news is that your payroll program will look after the electronic communication to Revenue with each pay run, if you are running your own payroll you just need to ensure you complete the steps to allow your payroll program communicate with Revenue. You will need to link your payroll program to your Revenue Online Services (ROS) digital certificate. If you do not have a ROS digital certificate you should apply to Revenue for access. Failure to comply with PAYE Modernisation will result in penalties being applied (a grace period for the first 6 weeks of 2019 is expected in order to allow everybody get used to the new processes).

• Is my payroll data PAYE Modernisation Ready: The payroll data is based on what a user inputs into the payroll program. The reason for Revenue’s PAYE Modernisation Project, and what employers need to do to prepare can be explained as one: The problem Revenue face is that there are currently break-downs in the operation of the PAYE system. For example, a situation where Revenue have issued a tax credit certificate for an employee, but for whatever reason the employer fails to use this tax credit certificate in the preparation of the payroll. The employee is left on emergency tax in error, and decides to ring Revenue to query why they are paying too much tax. Revenue check their system and see that the employee’s full tax credits are issued to the employer. Revenue do not have a copy of the employee’s payslip (or real time data) to fully understand what happened. So to prepare for PAYE Modernisation employers throughout 2018 should ensure that:
• They have entered the correct PPS number against each employee on the payroll
• They have applied for/received back a tax credit certificate for all employees
• They have issued a P45 for all employees that have left their employment

• May 2018: Revenue will begin Customer Service visits to ensure that employers are ready for PAYE Modernisation. It is important to understand that this is not an audit/inspection and will most likely only involve a discussion about the topic.

• June 2018: A data alignment return will have to be submitted to Revenue. In preparation for both your payroll data, and Revenue’s records being in sync (i.e. having the same list of active employees) Revenue will complete the following steps:
• Prior to June 2018 they will compare the P35s for 2017 for employees that were not registered employees per Revenue records. If the employer has not since registered the employment (or presumably registered a P45), then Revenue will automatically issue a tax credit certificate.
• In June 2018 Revenue will seek a data alignment return detailing the current list of employees so they can be cross-checked to their records.
• Autumn 2018: Another postal campaign aimed at employers is expected from Revenue.
• January/February 2019: You should issue the 2018 P60s, file your December 2018 P30 and P35 2018 as normal. Your first payroll in 2019 is run as part of PAYE Modernisation.

What Else Is Different?

• Employees: Employees are encouraged to register for Revenue’s MyAccount service as they will see realtime data of their pay and tax. They will also be able to download a Year-End Statement. This statement replaces the P60 system and will be accepted by banks/grant authorities etc. It is expected that Revenue will prepare an reconciliation of employee taxes at year-end and automatically issue refunds.
• Employer Returns: P Forms will cease to exist (P60s/P45/P35/P30).

New Terminology

• Revenue Payroll Notification (RPN): This is the new name for a P2C file/tax credit certificate. It will be downloaded by the payroll program directly from Revenue Online Services.
• Payroll Submission: This is the information that is sent to Revenue at the end of each pay run.
• Revenue’s Monthly Statement: A statement from Revenue detailing your monthly payroll summary and the total payroll taxes owed to Revenue.

Should you have any queries please do not hesitate to contact Ronan Duffy at our office.

This week one of our clients contacted us to ask if the txt they received was a spam txt or not. Also the Revenue Commissioners have posted on their website that they also have become aware of fraudulent emails and SMS (text messages) purporting to come from Revenue seeking personal information from taxpayers in connection with a tax refund or seeking credit/debit card details.

These emails and text messages did not issue from Revenue.

The Revenue Commissioners never send emails or text messages requiring customers to send personal information via email, text or pop-up windows.

Anyone who receives an email or text message purporting to be from Revenue and suspects it to be fraudulent or a scam should simply delete it. Anyone who is actually awaiting a tax refund should contact their local Revenue Office to check its status.

Anyone who provided personal information in response to these fraudulent emails or text messages should contact their bank or credit card company immediately.

Please see their Security page for further information.

10 April 2017