Each February marks the annual P35 deadline, whereby employers file a summary of gross pay and taxes deducted for each of their employees for the previous calendar year. What many employers do not realise is that 2018 marks the end of this system of reporting employee wages.
Revenue is introducing a new PAYE regime for employers from 1 January 2019. From this date, employers will have to report payroll information to Revenue in ‘real-time’ i.e. each time they pay their employees. These reports will have to be filed using Revenue-compliant payroll software, and means that those paying their employees weekly will have to file weekly reports with Revenue using this software.
The current PAYE reporting system was introduced almost 60 years ago and is not seen as being fit for purpose in today’s working environment. The new regime should result in greater reporting accuracy and will also be able to cater to wider variety of payroll arrangements.
Revenue engaged in a detailed consultation with employers/representative bodies and various concerns were raised the main ones being:
- Increased administration costs
- Increased number of deadlines
- Staff training
- Ensuring that any payroll software being used facilitates the modernised system
- Access to broadband
While the new regime does not come in to effect until next January there are some steps you can take now which should simplify the eventual changeover in 2019:
- Make sure you are registered as an employer with Revenue, if necessary
- Confirm that you have the correct PPS number for all your employees
- Make sure all your employees are registered with you
- Complete Form P45 for all employees who have left their employment with you
- Start talking to your accountant about the move to Real Time Reporting
At TaxAssist Accountants, we can assist you with any preparation that needs to be undertaken prior to the introduction of Real Time Reporting, including reviewing your current payroll system and its likely compatibility with the new regime.
We also provide outsourced payroll services to thousands of clients across the country so why not arrange a free initial consultation today to see what we can do for you.
By Mike Scanlan