PAYE Modernisation - Are you ready?
24 October 2018
The countdown to PAYE modernisation is on. In just over two months the PAYE system will be completely revamped. BDO outline the steps required for businesses to prepare for these changes.
Currently Revenue receive payroll information on an annual basis. However, from January 1st, 2019 employers will be required to calculate and report employee’s earnings and tax deductions in real time. This will dramatically change the flow of information to and from Revenue.
By operating in real time, Revenue can ensure that employees receive all the allowances they are entitled to and that the correct PAYE, PRSI, USC and LPT are deducted for each employee at the right time. It will also ensure that Revenue have the most up to date pay and tax deduction information for compliance and risk analysis which will allow for “In year” interventions. Material adjustments or differences arising month on month will be scrutinised by Revenue and may be investigated.
From an employee’s perspective all employees will now have online access to payroll information submitted to Revenue by their employers for each pay period in real time, which will allow for greater transparency. Within PAYE anytime, the jobs and pension services section will enable employees to allocate their tax credits between various employments, enabling them to maximise the use of their entitlements and give them greater control over their tax affairs.
It is essential that all employers are aware of their responsibilities under PAYE modernisation and should now review their business processes to ensure that they meet the new requirements. Many employers currently place too much emphasis on end of year reporting with a “mop up exercise” completed at year end prior to submitting the P35.
How can BDO assist?
- BDO has extensive experience in outsourced payroll. All our team are fully IPASS qualified Payroll Professionals. We use the latest software and take a proactive view of our client’s requirements.
- Business continuity is a key aspect of our service offering which is now more critical than ever given the frequency of statutory returns under PAYE Modernisation. How is your organisation placed should a member of staff fall ill or leave?
- BDO also provide advice to clients in relation to improving their payroll processes.
- BDO can assist organisations with the transition to real time reporting. Safeguarding against the additional payroll and employment tax risks you will face as an employer under the new regime.
Talk to BDO today to find out what PAYE Modernisation means for you or your business, Contact Pamela Coonan email@example.com on 061-414455 or a member of the BDO Payroll Team.