PAYE Modernisation – What you Need to Know

So what does it really mean for you?

It means that every time an employee is paid, you as an employer, will be required to submit an online return via a payroll submission file to Revenue.

So whether your employee gets paid weekly, bi-monthly or monthly, you will submit information that is similar to the information that is contained on a P35 return.

At the end of every month, the employer will then be provided with a statement of account via ROS. This statement is required to be accepted by the Employer by the 14th of the following month.

What is the benefit?

The Revenue give a lot of reasons but the main one is to reduce your administration burden and greater reporting accuracy. Typically, in payroll, much of the reporting is done at the year end. This cumulative end of year reporting will not be needed as reporting accurate data will be done at each pay period.

After the initial couple of months, with help, we believe it will benefit you and your employees.

Here are some of the top questions our clients ask:

1. Is it applicable to my business?

Yes – it doesn’t matter what industry sector you are in, any business registered as an employer with Revenue Commissioners will implement the changes for PAYE Modernisation.

2. What are the essential steps I need to take?

All steps are essential but these three are top of the list:

Firstly, ensure you are registered as an employer with Revenue. It sounds simple but some clients are mis-registered or unregistered.

Secondly, submit your employee list to revenue. Again, while simple, errors have been found with other clients so it’s important you do this. Include your employees’ PRSI number aswell.

Thirdly, talk to an accountant. AG Associates door is always open. This is a big deal – we are already talking to businesses who are running into issues.

3. I have payroll software so I’ve nothing to worry about, right?

Yes and no. Software is just a tool so it does help. However, you need the right information going into the software.

4. What if I get it wrong?

For each breach of the rules, you will have to pay a €4,000 penalty. A breach can include anything from applying the incorrect tax credit to an employee to not having a correct list of employees.

Get Help with PAYE Modernisation

There is no need to do it alone. It’s important to be compliant with the Revenue. We can help you with advice, consultation, training and payroll outsourcing.

Here are three easy steps to get PAYE Modernisation Ready:

1. Get in touch with us by calling us, emailing us or filling in the form.

2. We’ll get back in touch to arrange a conversation about your payroll

3. You’ll get practical ways to get you PAYE Modernisation compliant.