From 1 January 2019 there will be important changes to the way you report your Employees’ & Directors payroll information (pay, Income Tax, PRSI and USC) to Revenue – Payroll Modernisation will go live as of from that date.
How will this new system impact you?
- As an employer, you are required to provide detailed reports on pay and tax deductions to Revenue on or before every pay date
- Every time you pay your employees (and directors), your software should automatically search for RPN’s (Revenue Payroll Notification), which will provide you with the details required to calculate the correct payroll deductions
- RPN’s can change frequently depending on your employees’ circumstances. You can access the RPN’s with your payroll software or on ROS
- The safety net of being able to use the P35 at the end of the year to correct errors will be gone. You will no longer be able to correct mistakes this way
- You can review Revenue’s monthly statement, which summarises your payroll reports. You can make corrections to this report before the 14th of every month. After that, it becomes a statutory return
- In the past Revenue did not see payroll information until you reported it on the P35. Now Revenue will see details of employees’ pay and tax deductions in real time
- This means that the employer must at all times operate the payroll accurately when the employee in being paid to avoid mistakes and possible penalties
- Employees will be able to view their own individual payroll information online from mid-2019
- PAYE errors can be costly and it’s important to get your reporting correct. A penalty of €4,000 per breach can apply
How can we help?
We have set up a dedicated payroll bureau called McDonald Walsh Payroll Ltd to cater for all aspects of PAYE Modernisation and ongoing payroll compliance. As of from the 1st January 2019 McDonald Walsh Payroll Ltd are here to help and we can:
- Assist in the implementation of the PAYE Modernisation
- Calculate payroll for your employees
- Request Revenue Payroll Notifications
- Submit payroll to Revenue
- Email employee pay-slips (cloud option also available)
- Supply training to clients carrying out their own payroll
