PAYE Modernisation

October 26, 2017

PAYE modernisation was announced in the 2016 budget statement and will involve the most significant reform of the PAYE system since its introduction in 1960. Employers will need to calculate and report their employees’ pay and deductions as they are being paid. This will make it easier for Revenue, employers and employees to ensure that the right tax is deducted and paid at the right time.

The new real time reporting regime will be operational for all employee payments being made from 1 January 2019.

Employer readiness                                                                                                                                                        

As part of the Employer Readiness phase of the PAYE modernisation programme, Revenue is now contacting employers who do not appear to have informed them of new employees. This is based on the analysis of 2016 P35 returns.

These letters are being issued over the course of five weeks beginning in late September. They will be available to view in your ROS inbox under the category of 'PAYE-EMP P35L Review'.

It is important that you ensure that Revenue has the most up-to-date and accurate information about who you have in your employment. This also ensures compliance with your obligations as an employer.

Further details can be found on the Revenue website at PAYE Modernisation.

Revenue’s ‘Employers’ Guide to PAYE’ is also a useful source of information which explains your obligations regarding the taxation of your employees.


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