PAYE Modernisation is commencing on 1st January 2019. With real-time reporting soon coming into play, there are a number of important points for employers to consider.
The key change is that payroll data is to be supplied to the revenue each pay period in real-time. This change to real-time reporting will ensure that Revenue has the most up-to-date pay and tax deduction information for each pay period instead of waiting for the year-end filing of the P35 return, as happens at present.
The new process is briefly outlined below.
- Revenue Payroll Notification (RPN): Employers will need to check for RPNs each pay period, this will replace the current tax credit retrieval process (P2C). RPNs can be requested via your Xero accounting software or through Revenue Online Service (ROS), they will be available from mid-December 2017.
- Payroll Submission Request (PSR)A PSR will be used to provide payroll data to Revenue each pay period and will be required to be submitted to Revenue ‘on or before’ each pay period. PSRs eliminate the need for P30s, P35s, P45s and P46s. In addition, P60s will no longer be issued to employees and will effectively be replaced by an “end-of-year statement”. At the year-end, employees will be able to view and print their official certificate of earnings and deductions from Revenue (MyAccount).
- PaymentEvery month, Revenue will issue a statement with payroll submission totals. Employers can either accept the statement as a monthly return or correct payroll data if the statement is incorrect. If an employer does not accept or edit the statement, Revenue will deem it to be accepted. There will be no change to payment arrangements, payment due dates will remain the same (If you pay and file on ROS the deadline is the 23rd of the following month).