PAYE MODERNISATION
Irish Revenue’s PAYE modernisation came into effect on January 1st 2019. This is the most significant reform of the PAYE system since its introduction in 1960. Employers need to calculate and report employees pay and deductions as they are being paid. This will make it easier to deduct and pay at the right time the correct amounts of Income Tax (PAYE), Pay Related Social Insurance (PRSI) Universal Social Charge (USC) and Local Property Tax (LPT)
So from 1st January RCSI will report all pay and deductions to Irish Revenue in real time.
What does this mean for you ?
PAYE modernisation is designed to cause no disruption to employees.
The introduction of PAYE modernisation will improve accuracy and transparency of the PAYE system between employers, employees and the Revenue. It allows for real time communication between employers and Revenue that relates to the pay and tax deductions of employees. RCSI will submit payroll information to Revenue every pay period.
Employees will have online access to payroll information submitted to Revenue by RCSI in real time through “My Account” on www.revenue.ie
PAYE modernisation will result in key benefits to employees of:
Simplified online services
Maximise use of entitlements
Automatic end of year review
Real time accurate data
Transparency
All employees should register with Revenue for “My Account”. You only require your PPS number to set yourself up. Once set up you can view all your tax information including payments by RCSI to Revenue.
The traditional reporting structure i.e. P45 and P60 will cease to exist.
Instead you can access this information via “My Account” which will be updated in real time and will be active from mid 2019.
You will receive a P60 in 2019 in respect of 2018 and from 2019 onwards Revenue will issue you with an end of year statement. If you are unable to use “My Account” you will be able to request a paper version of the statement from Revenue.
When you cease your employment, your former employer will input the cessation date on the payroll submission. This will eliminate the requirement for a P45.
You will no longer need to provide a copy of your P45 to your new employer. Instead, you will confirm your PPS number to your new employer who will notify Revenue of your start date. This will create a new employment record with Revenue and allow your employer to access your up to date credits and rate bands.
If you have any queries please contact the Payroll team at salariesdept@rcsi.ie
Further information can be obtain at www.Revenue.ie