The PAYE system as we know it is about to undergo the biggest change since its introduction. From 1 January 2019 real time reporting will mean:
- There will be no more P45s, P30’s, P60’s or P35’s.
- P2Cs will automatically download into the payroll software.
- Monthly returns of PAYE will automatically file with Revenue.
- All employers will have to submit a list of employees to Revenue.
- Employers will need to calculate and report their employees’ pay and deductions as they are being paid.
- Returns will be live and up to date so Revenue will be able to audit in the present rather than the past.
Employers and payroll operators should take the following actions now:
- Ensure all employees are using the correct PPSN.
- Make sure all P2Cs are up to date.
- Only use credits as per P2C and emergency tax otherwise.
- Review BIK on a quarterly basis.
- Ensure that a fully compliant P35 is filed for 2017.
- P45 any employees on P2C but no longer employed.
PAYE Modernisation intends for Revenue, employers and employees to have the most up to date information available to them so that employees are paying the correct amount of tax each pay period.