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What is PAYE Modernisation?
Revenue introduced a new PAYE regime that employers have to abide by in 2019. It’s known as PAYE Modernisation. As an employer, you now have to report your payroll information to Revenue in real-time. This means that you have to notify Revenue every time you pay your employees.
You have to file your payroll information on the Revenue compliant payroll software. If you pay your employees weekly, then you have to file your reports weekly. But the rules don’t affect your payment of payroll taxes. The deadlines remain the same for all employers.
What Businesses Are Affected By This Change?
PAYE Modernisation affects all businesses that are registered with the Revenue as an employer. It doesn’t matter whether you have just a single employee or 100 employees. It was introduced to meet the challenges of today’s working environment and offer greater accuracy while catering to a wider variety of payroll arrangements.
It also offers greater transparency for employees. They can easily access the system and check if their gross pay and tax deductions match with what you’ve reported to Revenue. Additionally, the Department of Social Protection can have a real-time view of your employees’ PRSI contributions and speed up payments.
You’ll pay a penalty of €4,000 for every breach of PAYE Modernisation rules. For instance, you will incur a penalty if you don’t:
- Maintain a register of employees at the business address
- Inform Revenue when an employee leaves your employment
- Apply the most current tax credits for your employees
Help with PAYE Modernisation
At Conway and Conway, we can help you to prepare and implement PAYE Modernisation so you don’t incur unnecessary penalties. We also provide payroll services to enhance business efficiency and minimize costs. Schedule a free initial consultation today to see what we can do for you.