One of the biggest changes ever to happen with Payroll…… is being introduced by the Irish Revenue namely PAYE Modernisation or SMART PAYE.
This is a new system is going LIVE in January 2019 which will modernise the Pay As You Earn (PAYE) process, requiring employers to provide detailed information to Revenue every time employees are paid rather than through the current P35 year-end return.
What is PAYE Modernisation?
Referred to as SMART PAYE when initially announced, PAYE Modernisation is arguably the most significant change ever made to PAYE.
This new and improved way of reporting, is designed to make PAYE submissions more efficient – meaning you will submit real-time information to Revenue every time you pay employees rather than once a year at Payroll Year End via the P35.
Revenue having this real-time information means they will be able to issue accurate and timely instructions to employers, ensuring that an employee’s tax position at any time is correct resulting in less under or overpayments of tax.
PAYE Modernisation doesn’t change the way companies calculate PAYE, it just means more regular submissions to Revenue are required.
We have written previous blogs on the subject of SMART PAYE … SEE LINKS HERE
Important to act now ! Do not leave this until the last minute. This affects every business of every size, up and down the Country.
Revenue are already asking for information such as Employee Lists from Businesses.
There will also be a Revenue Testing system available in September ( that’s only four weeks away folks).
Other topics may also need to be considered, given the new system, it may be very beneficial to move Employees from weekly pay, to Monthly.
Whilst this is not a requirement, purely from a Time & Cost saving exercise, it will be very beneficial. A move like this needs planning now.
You need to engage and inform your Staff of the pending Revenue changes, get their buy-in.
Plan a loan scheme to assist them with a smooth transition to monthly pay.