PAYE modernisation

Welcome to the PAYE modernisation centre

Real time reporting of payroll information came into effect on 1 January 2019. This new payroll reporting regime means that employers now report to Revenue pay, tax and other deductions, as well as details of any employees leaving their employment when they run their payroll. Employees have full visibility of their payroll data submitted by their employer to Revenue in real time. Revenue have access to complete data on each employee every time employers run their payroll.

Latest PAYE modernisation news

Tax RoI

In response to members queries raised with us recently on the treatment of payments to directors and real time PAYE, we have assembled the main information from Revenue and legislation and summarised below.   Treatment of income Payments to directors of Irish incorporated companies are subject to the Schedule E charge to Irish income tax and to deductions at source under the PAYE system. More information is contained in Revenue Tax and Duty Manual Part 42.04.61.  The legislation (section 112 Taxes Consolidation Act 1997) provides two treatments for directors depending if the individual is a proprietary director (holds at least 15% of the company shares) or a non-proprietary director:   Income (i.e. Director’s fees) received by a proprietary director is taxed when the income is earned i.e. at the time it is put through the accounts and not when received. Proprietary directors also have to file an income tax return and include details of the director’s fees earned.   Income received by a non-proprietary director is taxed when it is actually received. Under PAYE Modernisation any payments paid to non-proprietary directors must be reported to Revenue on or before the pay date. The PAYE system applies to both proprietary and non-proprietary directors as it does to any other employee. For proprietary directors, emoluments paid more than six months after the end of the accounting year, are deemed paid on the last day of the previous year. In these instances, the company must make an amendment to the payroll submission for that period and resubmit to Revenue. See the Revenue website for more information on payment to directors. General treatment Since 1 January 2018, income from an office/employment is chargeable to tax on a receipts basis. This means that the income is subject to tax, USC and PRSI when it is received, regardless of when it is earned. Income received by a proprietary director is still taxed on an earnings basis. Employers must, however, operate PAYE on the director’s salary at the time of payment and report this payment to Revenue on or before the date it is paid. More information on employers’ PAYE obligations can be found in Revenue's Tax and Duty Manual Part 42.04.35a. We continue to engage with Revenue via the TALC forum on PAYE Modernisation and aspects of the system that are of concern to members.  We have specifically raised the treatment of payments to directors and guidance specific to these cases and we will report on any further clarifications in Tax eNews as they arise. 

Sep 30, 2019
Tax RoI

Revenue has updated the Employer’s Guide to PAYE to provide clarification on the following: The meaning of gross pay Employer’s obligations when employments commence Using the Revenue Payroll Notification (RPN) Revenue say that while the majority of employers are submitting accurate payroll information, some recurring issues have been identified.  Employers can contact the National Employer Helpline on 01 7383638 if they need help.  Employers are also reminded to ensure that their contact details are correct on ROS.  Read Revenue’s eBrief.

Aug 19, 2019
Tax

From 15 May onwards, employees can view their payroll information in MyAccount under the new real time reporting PAYE system. Employers must make a monthly return of pay details by the 14th day of the following month. Therefore employees can view their pay and tax details for the previous month once the return has been received by Revenue’s system. For example, from 15 May onwards, an employee should be able to see his or her pay and tax details for the month of April. The information reported to Revenue by an employer does not include non-statutory deductions, such as union subscriptions or payments to a credit union.  Therefore these deductions are not available to view in myAccount.  See Revenue’s webpage - PAYE Modernisation for employees for more details. 

May 20, 2019