Oct 2017
2
Are you ready for PAYE Modernisation?
To raise awareness about forthcoming PAYE Modernisation in 2019, Revenue has commenced its awareness campaign by releasing an information leaflet “PAYE Modernisation – Are You Ready”.
This leaflet highlights the vital steps for new and existing employers to undertake in advance of 1st January 2019, in order to succeed in the imminent taxation system revolution.
The key idea behind PAYE Modernisation is that all communication between employer and Revenue will happen in “real time”. In order to effectively overcome the upcoming challenges, employers are being encouraged to focus on the quality and accuracy of the data they provide to Revenue.
In preparation for PAYE Modernisation, employers are advised to follow several easy steps to guarantee its overall success when it does come into effect in 2019:
- Register as an employer (for new employers)
- Verify the PPSN provided by employees (e.g. check it against a Public Services Card, P45 or other Revenue or DSP correspondence) and where the employee does not hold a PPSN, they should contact the DSP to apply for one.
- Register all employees with Revenue (i.e. P45(3) or P46 where the employee has no P45). Where the new employee has not worked in Ireland before, the employee must register the employment online using the Jobs and Pension service available in myAccount. The Jobs and Pension service can also be used by employees who are changing from one employment to another. Once the employment has been registered, Revenue will issue a tax credit certificate.
- Issue a P45 when an employee ceases employment and submit it to Revenue.
- Ensure an up-to-date tax credit certificate has been received for each employee. The leaflet outlines the basis of tax which should be applied on the first payday of a new tax year in the event that an up-to-date tax credit certificate for that year is not received.
- Ensure a complete PAYE, PRSI and USC record for each employee is held at the end of the tax year.
At Thesaurus Software & BrightPay, we have always strived to deliver excellence in customer service and professional expertise in both Irish and UK payroll. We widely welcome the upcoming PAYE changes. As Paul Byrne, director of Thesaurus Software Ltd, stated during the Revenue's public consultation process held in December 2016:
“Whatever system is adopted, it is important that it represents a step forward for all parties. We are already committed to not charging our customers for the additional development involved. In addition, we are considering making a free version of our software available for micro employers, those with one or two employees.”
Related articles
- Revenue moves to PAYE Modernisation
- What you need to know about PAYE modernisation
- PAYE Modernisation | Real Time Reporting
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