PAYE Modernisation came into effect on January 1, 2019. This enables Revenue to ensure that employees are receiving their correct tax credits and cut-off points so that the correct deductions are being applied for every employee throughout the year when they are paid. Under the previous reporting system this was done through the preparation and filing of P35’s on an annual basis. This insures that Revenue have accurate information for employees at all times and also means that employees will have full online access in real time to their payroll information as submitted by their employer to Revenue.
PAYE Modernisation will place a significant burden on employers who process their payroll manually or even occasionally. Making employee submissions to Revenue for each pay period is time-consuming and a manual process can lead to errors and increase the risk of non-compliance which can result in Revenue intervention.
We provide payroll services to clients and as such are in a position to help you with the new payroll process.
For further information on the PAYE Modernisation please refer to www.revenue.ie