From 1 January 2019 the PAYE system, which was first introduced in 1960, is changing to 'real time'. This means that every time employers pay their employees, they will report the pay and deduction details to Revenue as part of the payroll process.
In the run up to this, employers are requested to:
· Ensure all employees are registered with Revenue
· Check all employees have the correct Personal Public Services Number (PPSN)
· Ensure all payroll data is accurate and up to date
· Check they have an active ROS digital certificate in order to run the payroll
Revenue Payroll Notifications (RPNs) will replace P2Cs and these will be available from 8th December. The RPN will contain the necessary information to deduct the correct tax, Universal Social Charge (USC) and the Local Property Tax (LPT). Employers will not be able to use an employee’s previous year’s P2Cs, they must request the latest RPN before running the payroll. In the event of not having an RPN for an employee, new emergency tax rates must be applied.
Along with the introduction of real time reporting, forms P45, P46, P30, P35 and P60 will be abolished. The 2018 P35 and P60 forms will be the last to be filed.
Employer returns from 2019 will be in the form of a monthly statement issued by Revenue on fifth day of the following month. The statement will detail the liability for income tax, USC, PRSI and LPT and it will be deemed as the employer’s return, however, employers will have an opportunity to do any amendments/corrections before the due date of 14th of the month. There are no changes in current payment due dates for employer returns.
New employees who have never worked in the state must register with Revenue using myAccount on the Revenue website. Employers will then be able to request an RPN for the employee.
When terminating an individual's employment, the date of leaving (cessation date) should be input on the payroll submission and this eliminates the need for a P45.
Revenue has indicated that in the early days of the new regime it will be adopting a supportive approach to employers. Revenue’s National Employer Help Desk has been scaled to handle additional support requirements and can be contacted on 01-7383638.
Information on PAYE Modernisation is available from the Revenue website here.
Friday, 7 December 2018