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PAYE Regulations 2018: Key Changes for PAYE Modernisation (Irish Tax Review 2018 Issue 4)

Irish Tax Review Julie Burke Rachel Dillon
2018-12-11
PAYE Regulations 2018: Key Changes for PAYE Modernisation … Revenue launched a public consultation in October 2016 on the modernisation of the PAYE system. Following this consultation, PAYE Modernisation and real-time reporting (RTR) will be effective from 1 January 2019. From this date, employers will be required to report all employee remuneration, together with the corresponding PAYE, USC and PRSI, to Revenue on or before the date of payment of the employee’s remuneration on a real-time basis. … In the Department of Finance’s “Budget 2019 Tax Policy Changes” document, it was confirmed that Revenue’s updated PAYE system will be fully operational to proceed as planned with the introduction of the new RTR system on 1 January 2019. … For many employers there is currently a focus on end-of-year reconciliations for PAYE-related data to ensure that the correct amount has been remitted to Revenue. This is particularly the case for more complex items of compensation, such as calculating the benefit-in-kind on company cars where the calculation is based on the business mileage that an employee is required to...
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PAYE Modernisation (Irish Tax Review 2017 Issue 4)

Irish Tax Review Julie Burke Sinead Sweeney Kathryn Hynes
2017-12-15
PAYE Modernisation … PAYE Modernisation Project Change Manager, Office of the Revenue Commissioners … PAYE Modernisation Project Team, Office of the Revenue Commissioners … This article focuses on the PAYE Modernisation Project and provides a status update on the journey so far. The purpose of the article is to help employers and advisors prepare for the coming changes. The legislative changes included in the proposed Finance Bill are not dealt with, but will be the subject of a future...
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“A Taxing Challenge”: Employment Tax Compliance in an Ever-Changing World (Irish Tax Review 2020 Issue 2)

Irish Tax Review Julie Burke Marie Caulfield Alex Manek
2020-07-07
“we will build on our advanced digital platform and PAYE Modernisation by designing innovative and dynamic systems. This will position us as a leading tax and customs administrator in the area of real-time activity and automated programmes” … Revenue’s technological advancements, particularly in relation to the management of payroll taxes, have become apparent in the wake of Covid-19. The newly modernised PAYE system has pivoted almost seamlessly from its primary role of collecting income tax (including USC) and PRSI to providing real-time financial support to both employers and employees on behalf of the Government. … When it comes to taxes on earnings, e.g. income tax (including USC and PRSI), collection is primarily undertaken through the PAYE system. In 2019, 39% (€22.9bn) of Revenue’s total net tax receipts related to income tax (including USC), the vast majority of which relates to taxes on earnings collected through the PAYE system. … Considering how heavily reliant the Government is on income tax for balancing the Exchequer’s books and taking account of Revenue’s two strategic pillars, “service for compliance” and “confront non-compliance”, it is not surprising that employment tax compliance and consequently the PAYE system have been the subject of increasing Revenue focus in recent years.
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Social Welfare, Pensions and Civil Registration Act 2018 (Irish Tax Review 2019 Issue 2)

Irish Tax Review Julie Burke Olive O’Donoghue
2019-06-20
PRSI Amendments for PAYE Modernisation … PAYE Modernisation and real-time reporting for the administration and operation of the PAYE system were introduced from 1 January 2019. Extensive legislative changes to the PAYE rules were initially made by Finance Act 2017 and the Income Tax (Employments) Regulations 2018, which were released on 7 September 2018 to facilitate the new system. Section 4 of SWP&CRA 2018 introduces changes to s17 of the “Principal Act” (i.e. the Social Welfare... Consolidation Act 2005; SWCA 2005) to align the collection and operation of PRSI for employed contributors with the updated law governing the operation of PAYE and USC at source (and to replace references to “the Income Tax (Employments) (Consolidated) Regulations 2001 (S.I. No. 559 of 2001)” with “Chapter 4 of Part 42 of the Act of 1997 and the Income Tax (Employments) Regulations 2018 (S.I.... … Section 4 also inserts a new s17B governing the “payment date” for PRSI contributions in accordance with the new PAYE regulations. Section 17B provides that the PRSI owing by an employer for a particular month continues to be due to be paid on or before the 14th day of the following month (or the 23rd of the following month where the payment is made via the Revenue Online Service...
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Legislation & Policy Monitor (Irish Tax Review 2016 Issue 4)

Irish Tax Review Julie Burke Aidan Lucey
2016-12-14
a Revenue consultation on “The Modernisation of the PAYE System”, which closes on 12 December 2016, and …  PAYE Modernisation – Public Consultation Paper … On Budget Day Minister Noonan announced the launch of a public consultation on proposals to modernise the PAYE system. Under the modernised framework, it is proposed that employers would report to Revenue pay, tax and other deductions, as well as details of any employees leaving the employment, at the same time as they run their payroll.
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PAYE Modernisation (Irish Tax Review 2019 Issue 1)

Irish Tax Review Julie Burke Sinead Sweeney
2019-04-01
PAYE Modernisation … Change Management and Communications Manager, PAYE Modernisation Project, Revenue Commissioners … The move to real-time PAYE is transforming the administration, and collection, of payroll taxes and is bringing about very significant efficiencies and improvements in accuracy and transparency for Revenue, employers and employees. The new arrangements apply to emoluments (salaries, wages, perquisites, expenses) paid to employees, pension recipients and company directors... … Revenue’s Public Consultation Document on PAYE Modernisation, published on 11 October 2016, explained the rationale for its introduction. The document stated that the PAYE system was introduced in 1960 at a time when a job for life was the norm and payroll was a manual process. Today, the nature and complexity of employment have significantly changed – people move jobs regularly; agency work and multiple concurrent employments are more prevalent. Additionally,... modern information and communications technologies present opportunities for electronic payroll and associated real-time tax reporting, and for modernisation of the administration of PAYE.
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Finance Act 2018: PAYE Modernisation Update and Amendments to SARP (Irish Tax Review 2019 Issue 1)

Irish Tax Review Julie Burke Elizabeth O’Driscoll Rachel Dillon
2019-04-01
Finance Act 2018: PAYE Modernisation Update and Amendments to SARP … This article considers recent updates with regard to PAYE Modernisation and a number of points clarified by Revenue in relation to more complex areas for real-time reporting. It also considers the formal introduction of the “week 53 pay day” in Finance Act 2018 and the amendments to the Special Assignee Relief Programme (SARP). … PAYE Modernisation … With the introduction of PAYE Modernisation and real-time reporting effective from 1 January 2019, employers are required to report to Revenue on or before the payment date the emoluments being paid to an employee, together with the associated payroll withholdings. The date for making payment of the payroll taxes to Revenue remains the...
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PAYE Modernisation: Practical Considerations for Small and Medium-Sized Employers (Irish Tax Review 2018 Issue 3)

Irish Tax Review Julie Burke Mary Healy
2018-09-28
PAYE Modernisation: Practical Considerations for Small and Medium-Sized Employers … Preparations for the launch of PAYE real-time reporting have escalated in recent months, with ROS and other software developments under way, Revenue “customer service” and compliance visits to businesses, requests to submit “Lists of Employees”, and countrywide Revenue seminars scheduled to start in September. … The articles by Doone O’Doherty, Jessica Webbley-O’Gorman and Jessica Walker, “PAYE Modernisation: Are You Ready for Real Time Reporting?”, and by Michael Rooney, “New Revenue Guidance on PAYE for Short-Term Business Visitors”, in this edition of  … reviewing the current payroll processes with a focus on capturing the correct pay information each pay period and identifying risks of non-application of PAYE, following Finance Act 2017 changes effective in 2018, e.g. changes to the “gross-up” rules, and 2019 changes;
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PAYE Modernisation: Are You Ready for Real Time Reporting? (Irish Tax Review 2018 Issue 3)

Irish Tax Review Julie Burke Doone O’Doherty Jessica Webbley-O’Gorman Jessica Walker
2018-09-28
PAYE Modernisation: Are You Ready for Real Time Reporting? … When PAYE Modernisation was announced in the Budget 2017 speech on 11 October 2016, many employers saw the introduction of Real Time Reporting (RTR) in Ireland in 2019 as a distant and future hurdle. However, with the 1 January 2019 “go-live” date now less than four months away,... articles have focused on Revenue’s preparations for modernisation and on the practitioner’s perspective on RTR. In this article we will discuss how it fits into the international tax compliance environment and examine some of the potential challenges faced by employers in implementing a compliant response to the introduction of RTR for PAYE. … Internationally, tax authorities are modernising, and this modernisation includes significant investment in technology and data analytics. Tax authorities have an expectation that taxpayers are also investing in technology and that the form of tax reporting should reflect the technology available. The aim is to minimise the tax compliance burden while maximising the benefit in terms of correct... … A number of countries have already implemented, or are in the process of introducing, real-time reporting in some form – whether for PAYE or other taxes. Real Time Information was implemented by HMRC in April 2013, and the Australian Tax Office introduced Single Touch Payroll on 1 July 2018. The Irish Revenue Commissioners have already implemented Real Time Reporting in respect of other taxes; for example, relevant contracts tax (RCT...
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PAYE Modernisation: A Practitioner’s Perspective (Irish Tax Review 2018 Issue 1)

Irish Tax Review Julie Burke Pat O’Brien
2018-03-23
PAYE Modernisation: A Practitioner’s Perspective … With the launch date of 1 January 2019 for PAYE Modernisation now less than a year away, advisers and their clients will need to begin planning for the significant changes that will come about as a result of the project. The recent article by Sinead Sweeney and Kathryn Hynes of the Revenue Commissioners ( , 30/4 (2017), 79–82) provides a thorough overview of the PAYE Modernisation project, progress to date with implementation and what the changes will mean for employers and employees in terms of the PAYE compliance process. Many members are also likely to have attended one of the many briefing sessions that have taken place. I do not propose, therefore, to cover the same ground, and I would direct those requiring an introduction to the topic to the aforementioned article. The present... article addresses the PAYE Modernisation project primarily from a practitioner’s perspective. This encompasses matters such as interaction with clients before implementation, technical changes in the recent Finance Act arising from the project, and some thoughts on what the landscape might look like for practitioners and their clients after implementation. … “At its core, PAYE Modernisation means that, for each member of staff, employers will make the right tax deduction when the staff member is being paid, employees will have the certainty of knowing that they are not overpaying or underpaying tax and Revenue will, through real-time reporting by the employer, have... … At its heart is the proposition that PAYE will cease to be focused on post-year-end annual reporting and will instead operate in a real-time environment for Revenue, employers and employees. The concept of a “tax year” for employers will disappear. Instead, employers will file a monthly return at the same time that... they prepare their payroll. If it is assumed that the system operates as intended, PAYE compliance for employers will in effect be a by-product of their payroll process, with reporting seamlessly integrated into the payroll process, and much paperwork, such as P45s, P60s and year-end P35s, will be eliminated entirely. Employees will have access to their PAYE information at the same time as the deductions are paid and will have access to a wider and more flexible range of online services to enable them to manage their tax affairs. For its part, Revenue will place itself much closer to the PAYE process than it stands at present. Rather than waiting for over a year to receive the P35 return, Revenue will have that information every month and will be in a better position to monitor and intervene in cases as necessary.
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