7 steps to PAYE modernisation – are you prepared?

By

Sean Murray

September 5, 2018

September 5, 2018

PAYE modernisation is fast-approaching – and it’s going to have serious implications if you’re not fully prepared.

PAYE modernisation is fast-approaching – and it’s going to have serious implications if you’re not fully prepared.

From March 2019, employees will be able to access all their pay and tax data via Revenue’s enhanced ‘myAccount’ online portal in the form of a statutory statement summarising the contents of each payslip throughout the tax year. It’s a pioneering innovation, relying on employers to supply up-to-date and accurate information to Revenue under the new reporting obligations.

To ensure you’re ready for January, here’s a quick 7 step guide to help you prepare for the new PAYE regime.

1.     Cleanse your data

Do you have any gaps in the required information for any of your employees? It’s not unusual for employers to have a few blank spaces on their employee records. Information, such as addresses, tax cert information,start and leave dates can often be out of date too. It’s well worth reviewing your business processes and controls to ensure you are up-to-date and can maintain accurate data going forward.  

Take a look at our HR Data Around the Clock checklist to find out what data you should be collecting and purging and when

2.     Registered PPS numbers

Are all your contracted employees registered with the Department of Employment Affairs and Social Protection? Having PPS numbers in place will be vital if Revenue is going to accurately supply tax certs to individual employees. It can take time for PPS numbers to be allocated, sometimes up to three months if the worker has come from abroad, so you may get some leeway on this - but don’t expect too much.

3.     Assign employment ID

Have you assigned an Employment ID to each employee?  This should be unique for each employee record.Revenue will need you to assign these in order to differentiate between different contracts of employment. This will help avoid confusion if an employee has two separate jobs – for example, if they work as a security guard Monday to Wednesday and as a facilities manager Thursday and Friday.Previously, tax cert details could sometimes be applied to the wrong record and Revenue wants to put a stop to this.

4.     Up-to-date tax certs

Downloading and applying the latest tax cert information(P2C file) before every payroll run will be an absolute must. All this information will be available for employees to check via the updated ‘myAccount’ portal. So, it’s vital that changes in circumstances are recorded and the subsequent tax certs changes properly applied to avoid any queries.

5.     Educate employees

If there is a problem with a tax cert, or if there is a query about a published Revenue statement, you’ll need to ensure employees know who to follow up with, as it may not necessarily be the fault of the employer.Employees will also need to know that they’ll no longer be receiving forms such as P45s and P60s from their employer. Instead they can access all this information from Revenue’s online portal via ‘myAccount’– where they can also review and manage tax by reallocating credits and cut-off values, if they have more than one job.

6.     Submit PAYE on time

Come January you’ll need to ensure that all payroll statutory data is submitted to Revenue following each payroll run. This must be carried out before the pay date for that run – otherwise your organisation could be subject to Revenue audit or further action. This is known as the file “on or before” rule.  

 

7.     Watch out for further information

Keep your ear to the ground on what Revenue is saying. The PAYE Modernisation Project involves the most significant reform of the PAYE system since its introduction in 1960.The functionality being introduced is pioneering and a huge undertaking from a technological deployment perspective. Test environments, for use by software providers, went live in March so it’s entirely possible that further information and guidance could be provided as lessons are learned. In the meantime, you can always ask NGA for advice as we run our own tests in preparation for the go-live date this January.

Watch Revenue's Ruth Kennedy giving the lowdown on PAYE Modernisation for more details

To discover more about NGA ResourceLink

About the author:

Sean Murray

Software Readiness Lead

Sean Murray has over 29 years experience in HR and Payroll Software solutions and services delivery. He heads up the Irish Service Readiness business at NGA HR, a team comprised of project managers, application consultants, business intelligence analysts and data migration experts. Sean's vast knowledge and experience allows him to help customer find the solutions that that work best for their business, working on requirements analysis, system implementation and post go-live support. He has worked closely with Revenue to help shape the PAYE Modernisation project in his role as Chairperson of the Payroll software Developers Association of Ireland.

All blogs in:

Payroll

PayrollWhat your employees need to know about PAYE Modernisation before January

By

Sean Murray

September 11, 2018

September 11, 2018

Revenue’s decision to enhance the ‘myAccount’ portal is areal game changer for the payroll sector in Ireland. Revenue certainly did its research in preparation for PAYE Modernisation, looking at what counterparts in the UK, Australia and Scandinavia are doing, but this innovation is taking things to the next level

PayrollDo you know what payroll data Revenue will be paying special attention to come January?

By

Sean Murray

September 11, 2018

September 10, 2018

Understanding which aspects of PAYE Modernisation Revenue officials will be scrutinising when the new regime goes live in January will be essential for all payroll departments across Ireland

PayrollHow can Payroll be simplified to minimise error?

By

Jaspal Randhawa-Wayte

September 11, 2018

September 7, 2018

In days gone by, Payroll systems would attribute a high proportion of their focus on two key areas - the gross to net calculation of payroll, and ensuring employees were paid correctly and on time. Whilst both areas remain vital and at the core of the systems functionality, today's ever-evolving Payroll landscape means that systems are now expected to cover a much wider range of duties.

PayrollWhat does the future of Payroll look like?

By

Jaspal Randhawa-Wayte

September 7, 2018

September 6, 2018

With technology advancing at such a rapid rate and the likes of artificial intelligence and machine learning coming to the forefront, what does it mean for the future of Payroll?

Payroll7 steps to PAYE modernisation – are you prepared?

By

Sean Murray

September 5, 2018

September 5, 2018

PAYE modernisation is fast-approaching – and it’s going to have serious implications if you’re not fully prepared.

PayrollHow can you take the stress out of Payroll?

By

Kate Upcraft

September 4, 2018

September 4, 2018

If you’re a payroll professional, one of the most irritating things that you probably hear far too often is… ‘payroll is just pressing a button once a month’. Fortunately, those people entrusted with the business’ largest controllable cost, i.e. its salary bill, know differently. To celebrate National Payroll week we're looking at how you can take the stress out of Payroll.

PayrollGuest Blog - Happy Holidays?

By

Kate Upcraft

August 15, 2018

August 13, 2018

Whilst your employees might be counting down the days to their annual break, if you’re an employer there can be all sorts of reasons to dread the annual exodus – not least the payroll implications.

PayrollAn evolution of payroll

By

Jonathan Legdon

September 11, 2017

September 11, 2017

Every department within your business has an important role to play, but where would we be without the payroll department?