Apr 2022
19
PAYE Modernisation – why manual payroll doesn’t cut it anymore
PAYE Modernisation was first brought into effect on the 1st of January 2019. It was created to simplify the payroll process by abolishing the paperwork involved with P45s, P60s, and other related documents.
It was also established to improve the transparency of the PAYE system, ensuring that employees are paid properly with the correct tax deductions and cut-off points applied. This is great for employees as the PAYE Modernisation real-time reporting process means that the correct tax is deducted when an employee is paid, reducing tax inaccuracies across the board for employees.
What does it mean for me as an employer?
As an employer processing payroll, it is now your duty to ensure that employees are being paid properly – that also includes applying the correct tax deductions and cut-off points.
If you’re calculating PAYE Modernisation manually, this can leave space for mistakes and errors to occur. All employers must calculate and report their employees pay and deductions in real time, every pay period. Not only that, but payroll legislation also changed (as we saw in January 2019) and not staying up-to-date with the latest rules and regulations can lead to quite costly penalties.
What are the penalties?
Did you know that if employers fail to engage with Revenue or who persistently breach the PAYE regulations are liable to a €4,000 penalty per offence?
Yes, you read that correctly. Not only that, but there’s also a hefty €3,000 penalty on the company secretary per offence! *gulp*
What’s the solution?
Revenue has recommended for businesses to invest in a payroll software that is integrated with PAYE modernisation to make the process as smooth as possible.
Here at BrightPay Payroll Software, we’ve worked with Revenue to ensure our payroll software is fully compliant with all PAYE Modernisation requirements.
Below are five fantastic ways BrightPay can help your business with PAYE Modernisation:
5 ways BrightPay can help with PAYE Modernisation:
1. Revenue integration
Manually processing your payroll can take a hefty toll on admin work, as you need to create payroll files as well as upload all relevant information to ROS for every single pay period in real time.
Thankfully, BrightPay payroll software is fully integrated with Revenue, making your payroll process smooth and seamless for you. You can retrieve RPNs (Revenue Payroll Notifications) straight from Revenue within our software, and can also send PSRs (Payroll Submission Requests) directly to Revenue in just a matter of seconds!
2. Suitable for all business sizes
Whether you have one employee or 10,000 employees – we accommodate businesses of all sizes here at BrightPay. So, no matter the scale of your business, we have what it takes to fully streamline your PAYE Modernisation process.
We also provide a wide range of resources to help you, such as webinars, guides and video tutorials, along with an incredible support team to guide you throughout the entire process.
3. Saves you time
Ensuring that Revenue has the most accurate, up to date pay information for your employees can really be such a monotonous and lengthy task, but it doesn’t have to be that way!
BrightPay payroll software can:
- Retrieve RPNs by the click of a button
- Automatically apply tax credits and cut off points in real time
- Send PSRs straight to Revenue in just one click
Not only does this save you time – it also increases the efficiency and running of your business – allowing you to attend to more important business tasks at hand. It also increases your Revenue compliance, ensuring the correct payment details are being sent to Revenue.
4. Update Employee Details
Has your employee’s tax credits or cut off points changed? Not a problem – BrightPay retrieves the latest RPNs for you and identifies any changes needed to correctly calculate employees’ pay and deductions, all updated by the click of a button!
This is also the case for new employees, where you can request and create RPNs for new employees within the software.
5. Corrections made easy
Made an error in your payroll submission?
Mistakes happen and are bound to crop up now and again – but these can be resolved quickly by simply sending a correction submission. This gets sent directly to Revenue within BrightPay and allows you to make adjustments accordingly.
*Bonus Tip*
Did you know that if you also sign up to BrightPay Connect, the optional cloud add-on to BrightPay payroll software, you can have the added benefits of:
Complying with other laws such as GDPR, by storing your payroll data in a secure and remote location.
Automatically backing-up your payroll data every 15 minutes, so there’s no more fear of losing your payroll information.
Managing your employee’s annual leave in a simple user-friendly format.
BrightPay is award-winning software, and was awarded ‘Payroll Software of the Year’ in 2018, 2019 and 2021 along with winning the COVID Hero Supplier Award in 2020. With over 330,000 businesses across Ireland and the UK using our software and a 98.8% customer satisfaction rate, you know you’re in safe hands.
Take the nuisance out of PAYE modernisation and book a demo with us today!
Looking for further information on PAYE Modernisation? Download our free guide that covers how PAYE Modernisation affects your business. Click the button below to receive your guide.
Jul 2021
14
PAYE Modernisation – 2 years on
The new Irish PAYE system, PAYE Modernisation is now over two and a half years old. Where has the time gone? It feels like only a few short months ago that the deadline was fast approaching. It first launched on the 1st of January 2019 with the goal of delivering Real Time Reporting (RTR) in payroll and putting a bigger focus on payroll compliance for all businesses. The change was well overdue as the Irish PAYE system had no major alterations since 1960 when it was first introduced. So, with that in mind, let's look back on the impact PAYE Modernisation has had over the past two years.
The key changes
All of the ‘P Forms’ - P30s, P35s, P60s, P45s and P46s - were abolished. These forms were previously used when an employee left a job (P45) and given a yearly statement by the employer of each employee’s annual pay and deductions (P60). They were replaced by real time submissions to Revenue. In most cases, this means a file will be submitted either weekly or monthly to Revenue by the employer or payroll processor.
The retrieval of tax credits also changed, with the introduction of Revenue Payroll Notifications (RPNs). Employers must use the most up to date RPN when calculating employees’ pay and deductions each pay period which will update any changes to an employee’s tax credit or cut-off points. This process is made easier when completed through payroll software. Revenue’s annual report released in April 2021, stated that in 2020, there were 8 million Revenue Payroll Notifications (RPNs) requested and 6.1 million successful payroll submissions.
The benefits
PAYE Modernisation has improved the accuracy and transparency of the PAYE system. It has benefited employees, employers and Revenue. Submitting information in real-time reduces tax underpayments and overpayments for employees, reduces admin work for employers and ensures that Revenue systems are accurate and up to date at all times.
Did PAYE Modernisation affect employees?
Since the introduction of PAYE Modernisation, employees can log in to Revenue (MyAccount) and view what has been submitted in relation to them by their employer. Employees can allocate their credits and cut-offs between multiple employments themselves. At the end of each year, they can view their Employment Detail Summary (formerly P60) which is automatically available to employees in January each year.
Payroll software that caters for PAYE Modernisation
BrightPay is at the forefront when it comes to PAYE Modernisation compliant payroll software. BrightPay works directly with Revenue to ensure our payroll software is fully PAYE Modernisation compliant. BrightPay ensures that the correct payroll files are produced and seamlessly submitted to Revenue. The Revenue Commissioners are strongly recommending that businesses ensure that they are using software that caters for the requirements of PAYE Modernisation. Visit BrightPay’s FAQ section where the most common questions relating to PAYE Modernisation are answered.
Discover more
Book a free 15-minute online demo of BrightPay and find out how the PAYE Modernisation process is made easier when completed through payroll software.
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Oct 2019
3
One year later... Can PAYE Modernisation be considered a triumph?
Join BrightPay’s Paul Byrne as he takes you through the PAYE Modernisation journey so far, and decides whether or not PAYE Modernisation has been a success. During the webinar, Paul will also review some of the most common mistakes employers have made to date and what employers should expect in 2020.
As part of this webinar, we’ll take a closer look at BrightPay Connect and how important it is to backup your payroll data for PAYE Modernisation. Ian Jenkinson will take you on a whistle-stop tour revealing the hidden benefits of our self-service employee app and explain how BrightPay Connect’s cloud platforms can improve your payroll processes.
We are delighted to be joined by our guest speaker Sinead Sweeney, who is the PAYE Modernisation Change Manager at Revenue. Sinead will discuss what has happened since PAYE Modernisation has gone live and what challenges businesses are facing.
The webinar is CPD accredited for accountants and payroll bureaus. The webinar is free to attend and takes place on 23rd October at 11.00 am for payroll bureaus and 24th October at 11.00 am for employers. Limited places available - book your place now to avoid disappointment.
Can’t make it? Register for the webinar anyway and we will send you the on-demand recording when it’s ready.
More upcoming webinars
BrightPay is hosting a number of webinars over the coming months. More upcoming webinars include:
Jun 2019
25
PAYE Modernisation: The good, the bad and the ugly
Latest Revenue figures for PAYE Modernisation show that 161,000 employers have successfully submitted over 2 million payroll submissions in respect of over 2.6 million employees.
Although the new system has proved very successful overall, the first four months of the new real time payroll reporting system also faced some recurring issues with payroll submissions. Here are the 10 most common errors seen by Revenue:
- Employers mistakenly sending the payroll data to Revenue more than once.
- Employers incorrectly creating duplicate employments for the same employee.
- Payroll submissions, or parts of payroll submissions, failing the validation process.
- Employers ceasing employment for employees in error by incorrectly including cessation dates in payroll submissions.
- Employers failing to apply the most up-to-date Revenue Payroll Notification (RPN) when running payroll.
- Employees being taxed on the emergency tax basis where an RPN is available.
- Incorrect operation of emergency tax e.g. employee reported with emergency tax, but no tax deducted by the employer.
- ‘Gross Pay’ shown as less than ‘Pay for Income Tax’ and/or ‘Pay for USC’.
- No USC deducted where the employee is not USC exempt, and similarly, USC deducted where the employee is USC exempt.
- Employers paying their tax liability twice in error e.g. by setting up both a ROS Debit Instruction and Variable Direct Debit for the same payment period.
Where errors arise, employers should immediately rectify them to ensure that they are not included in future payrolls. Early action also reduces the possibility of a Revenue intervention. Revenue will continue to assist any employer who is experiencing genuine difficulty in complying with the new PAYE requirements. However, it is important to remember that employers who fail to engage with Revenue or who persistently breach the PAYE Regulations are liable to a €4,000 penalty per offence.
It is in every employer’s interest to ensure that the data submitted to Revenue is accurate and in line with the employee’s payslip record, especially now that employees have access to their pay and tax details through their myAccount. Any discrepancies between payroll details on an employee’s payslip and those reported to Revenue could result in employees seeking clarification from their employer.
May 2019
21
PAYE Modernisation Update: Payroll and tax details now available to employees in myAccount
PAYE Modernisation is now in full force with the majority of employers having seamlessly transitioned to the new reporting system. From January until the end of April this year, some 161,000 employers have successfully submitted over 2 million payroll submissions in respect of over 2.6 million employees.
With real time reporting now in place for employers, Revenue has turned their focus to the benefits of this new system for employees. Since the 15th of May, all employees can now view their payroll details, as reported by their employer, through their myAccount. Further improved services through myAccount will also follow later in the year.
Employers should be aware that employees can now view any discrepancies between payroll details on an employee’s payslip and those reported to Revenue. It is therefore very much in every employer’s interest to ensure that the data submitted to Revenue is accurate and in line with the employee’s payslip record.
For more information about employee pay and tax details in myAccount, visit Revenue’s new PAYE Modernisation for Employees helpguide.
Feb 2019
5
How to avoid PAYE Modernisation mistakes
PAYE Modernisation is now fully operational and has brought many changes to the payroll process. Overall, it brings many benefits to all stakeholders involved - employers, employees and Revenue.
It is important that employers are aware of and understand their new real time reporting obligations. Revenue has strongly advised employers to review their payroll processes and systems to ensure that they meet the new PAYE Modernisation requirements.
Employers need to be aware that mistakes can be very costly. An employer is responsible for deducting the tax and paying over the liability to Revenue, and so non-compliance will result in interest to be paid by the employer. Employers who fail to comply can expect Revenue intervention with non-compliance penalties and fines.
The current penalty regime includes a fixed penalty of €4,000 for each breach of the PAYE legislation. It also includes a fixed penalty of €3,000 imposed on the company secretary for each breach. These penalties can be imposed on a per-item basis, so if you are even a mid-sized employer, these penalties can build up.
Download our free eBook for employers - Surviving PAYE Modernisation. In this guide, we discuss the key changes with PAYE Modernisation and what employers need to do to avoid non-compliance penalties from Revenue.
Interested in finding out more about PAYE Modernisation? Thesaurus Software and Revenue have teamed up for a new series of free PAYE Modernisation webinars. During the webinars, we will look at what has happened since PAYE Modernisation has gone live and what challenges businesses are facing.
Click here to book your place on one of our upcoming webinars.
Related Articles:
Feb 2019
1
ROS digital certificates - why you need one ASAP
Fun fact: Ireland is considered 1st in the EU when it comes to paying taxes!! Yes, I was just as shocked as you are! 1st in the EU at talking the ear off you and definitely 1st in the world at having the almighty craic, but paying taxes? Gosh not only are we funny and friendly, we’re honest and hardworking too! We’re so into our taxes and payroll that we are completely revolutionizing the way PAYE is reported to Revenue starting in the new year. When I say ‘we’, I mean it was the Irish government.
Yes that’s right folks I’m talking about PAYE Modernisation, the biggest (and best) change to PAYE since its introduction back in 1960. While, not everyone will agree, PAYE Modernisation will most definitely be a good thing for employers and employees. But today I want to talk about a very important certificate.
What are digital certificates? Revenue uses “digital certs” to allow business customers to electronically access their Revenue Online account and “sign and submit” their returns via the electronic channel (ROS). Essentially the process of electronically “signing and submitting” acts in lieu of a legal signature and ensures that the transactions and communications between business customers and Revenue cannot be repudiated at a later stage. It is also required by agents who wish to access online services for their clients.
Not only is this quite nifty, it is super secure. We're talking pinky promise between two grown men secure, that the information is locked down! And this security has been credited with the success of the digital certificates, and is possibly one of the key factors contributing to us paying our taxes so well.
But Aoibheann, digital certs have been around for ages, why the sudden interest? What else is going to make a comeback, bootleg jeans? Well digital certs are now a hot topic thanks to the introduction of PAYE Modernisation which came into effect on January 1st 2019. I’ve talked before about how you should be using payroll software in order to utilise it effectively, but equally as important is downloading your ROS digital certificate. Without this digital cert the PAYE Modernisation features in your software won’t work. You need to be able to access the ROS servers directly from your payroll software and likewise for the payroll information to be able to upload seamlessly to ROS from your computer.
The digital cert may sound scary but Thesaurus Software have put together a step by step guide on how to save and reload your digital certificates. It’s so simple, you wouldn't even need to get one of your grandkids to it for you.
Well, what are you waiting for? Get moving! So you can focus on real issues, like what to wear to bingo on Thursday.
Written by Aoibheann Byrne | BrightPay & Thesaurus Payroll
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Thesaurus Payroll Manager Bureau version and Agent ROS Digital certificates
Adding a Revenue Digital Certificate - Employers
Saving a ROS Digital Certificate on to your computer
Jan 2019
28
PAYE Modernisation is now live - but how do I comply?
By now, all employers in Ireland should know about Revenue’s new PAYE Modernisation legislation. This system came into effect on January 1st 2019 and brought with it a new and improved method of reporting PAYE information to Revenue.
PAYE Modernisation has brought many changes to the payroll process. With the new system, employers are required to send real time payroll submissions to Revenue containing details of their employees’ PAYE information. These submissions must be sent to Revenue on or before the date an employee is paid every pay period. In most cases, this means a file will be submitted either weekly or monthly.
What happens if I don’t comply?
Non-compliant employers can expect Revenue intervention with non-compliance penalties and fines. An employer is responsible for deducting the tax and paying over the liability to Revenue and so non-compliance will result in interest to be paid by the employer.
The current penalty regime includes a fixed penalty of €4,000 for each breach of the PAYE legislation. It also includes a fixed penalty of €3,000 imposed on the company secretary for each breach. These penalties can be imposed on a per-item basis, so if you are even a mid-sized employer, these penalties can build up.
Free eBook: Surviving PAYE Modernisation!
Download your free copy of our PAYE Modernisation guide for employers. In this guide, we discuss practical PAYE Modernisation tips that every employer needs to know. Make sure you avoid fines for non-compliance.Download free guide
Find out more with our free PAYE Modernisation webinars
Revenue has teamed up with Thesaurus Software for a series of free PAYE Modernisation webinars. During the webinars, we will look at what has happened since PAYE Modernisation has gone live and what challenges businesses are facing. Click here to book your place on one of our upcoming webinars.
Jan 2019
24
Last chance to register! Free CPD accredited webinar with Thesaurus Software & Revenue
PAYE Modernisation, One Month On!! New Year, New Payroll Legislation
Thesaurus Software and Revenue have teamed up for another series of free PAYE Modernisation webinars featuring a brand new agenda. We will look at what has happened since PAYE Modernisation has gone live and the challenges businesses are facing.
The first webinar in the series takes place on January 30th and is CPD accredited for accountants. Due to the high level of interest, this webinar is almost booked out with just 50 places remaining. Book your place now to avoid disappointment.
The webinars are aimed at giving you an overview of how the new real time reporting system works, the benefits of this new system and how to make sure that your business is PAYE Modernisation compliant. We will peel back the PAYE Modernisation legislation to outline clearly how PAYE Modernisation affects the payroll process and what is expected from you in 2019 and going forward.
Register here | View extra dates added
Free PAYE Modernisation eBook:
Surviving PAYE Modernisation! What to do to complyDownload your free copy of BrightPay’s PAYE Modernisation guide for employers. In this guide, we discuss practical PAYE Modernisation tips that every employer needs to know.
Download free guide
Thesaurus Software & PAYE Modernisation
Thesaurus Software is the number one payroll software provider in Ireland with two different payroll packages to choose from - Thesaurus Payroll Manager and BrightPay. Both systems include full PAYE Modernisation functionality at no extra cost. We have worked closely with Revenue to ensure that both systems are fully compliant.
Our products are used to process the payroll for over 125,000 businesses across Ireland and the UK. BrightPay won the Payroll Software of the Year 2018 award at the Accounting Excellence awards. With a 99% customer satisfaction rate, our customers can rest assured that all required functionality is catered for.
We have made it easier than ever before to switch to BrightPay - You can import your payroll data from Sage, Collsoft, Big Red Book, and many others.
Book a BrightPay demo | Watch short PAYE Modernisation video | Download 60 day free trial
Jan 2019
14
PAYE Modernisation, One Month On!! New Year, New Payroll Legislation
PAYE Modernisation was introduced on the 1st of January 2019 and affects the way all employers process payroll. It is the most significant change ever to the Irish PAYE system. It is important that all employers and payroll processors understand their new real time reporting obligations.
Free PAYE Modernisation Webinars
Thesaurus Software and Revenue have teamed up for another series of free, CPD accredited PAYE Modernisation webinars. These upcoming webinars have a new agenda. We will look at what has happened since PAYE Modernisation has gone live and at the challenges businesses are facing.
The webinars are aimed at giving you an overview of how the new real time reporting works, the benefits of this new system and how to make sure that your business is PAYE Modernisation compliant. We will peel back the PAYE Modernisation legislation to outline clearly how PAYE Modernisation affects the payroll process and what is expected from you in 2019 and going forward.
Due to the high level of interest, it is expected that the training webinars will soon be completely booked out. Book your place now to avoid disappointment.
Webinar Agenda
- What is PAYE Modernisation and how to comply?
- How PAYE Modernisation will streamline your processes
- The benefits of PAYE Modernisation
- Recent updates and changes to PAYE Modernisation
- Reporting to Revenue in real time
- Making corrections to the payroll
- The approach to non-compliance and penalties
- How Thesaurus Payroll Manager & BrightPay are supporting your PAYE Modernisation journey.
- Guest Speaker: Revenue
The first webinar in the series takes place on January 30th and is CPD accredited for accountants and payroll bureaus. Due to phenomenal demand, we have also added more dates in February.
Thesaurus Software & PAYE Modernisation
Thesaurus Software is the number one payroll software provider in Ireland with two different payroll packages to choose from - Thesaurus Payroll Manager and BrightPay. Both systems include full PAYE Modernisation functionality at no extra cost. We have worked closely with Revenue to ensure that both systems are fully PAYE Modernisation compliant.
Our products are used to process the payroll for over 125,000 business across Ireland and the UK. BrightPay won the Payroll Software of the Year 2018 award at this year’s Accounting Excellence awards. With a 99% customer satisfaction rate, our customers can rest assured that all required functionality is catered for.
We have made it easier than ever before to switch to BrightPay or Thesaurus Payroll Manager - You can import your payroll data from Sage, Collsoft, Big Red Book, and many others in a matter of minutes.
Book a BrightPay demo | Thesaurus Payroll Manager demo
