PAYE Modernisation for Employers

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.