Have you heard about PAYE Modernisation?
From 1 January 2019, payroll will need to go through the following steps prior to paying employees (i.e. prior to each pay date):
- Obtain a Revenue Payment Notification (“RPN”) from Revenue for that pay period, which will contain relevant details on how to tax each employee for the pay period in question,
- Process payments to employees
- Report payments made, the payment date and tax deducted (or repayable) to Revenue for each employee
- Reconcile / accept the statement from revenue showing the total payroll deductions by the 14th of the following month
- Pay the associated tax to Revenue by the 23rd of the following month
The above steps will replace the current P30 reporting, which was only required on a cumulative basis for the company rather than per employee. The P35 filing will also no longer be required.
It is important to note that it will not be possible to correct errors/omissions occurring throughout the year and that the reporting process must be correct for each pay period, otherwise penalties may apply (under current legislation, penalties can apply to each separate reporting failure).