PAYE Modernisation: How to deal with employees commencing and leaving employment (Sponsored)

Feb 14, 2019

Employers are required to notify Revenue of any new employees or employees who have left their employment. With PAYE Modernisation, some employers are confused as to what is required of them in these scenarios.

From 1 January 2019, employers are no longer required to submit a P45 Part 3 or a P46 to Revenue to register a new employee. Instead, to commence a new employment, an employer will now submit a Revenue Payroll Notification (RPN) request for the new employee. This will create the employment on Revenue’s side and Revenue will send an RPN response back into the payroll software advising of the tax credits, cut off points, etc. to be applied to the employee's pay. The employee’s start date will subsequently be reported to Revenue in the first Payroll Submission Request (PSR) you submit for that employee.

PAYE Modernisation has also abolished the requirement for employers to issue a P45 to an employee and submit the P45 Part 1 to Revenue when they leave their employment. Instead, an employee’s leave date will be reported to Revenue in the final payroll submission made for that employee. Once a leave date is entered in the payroll software, this leaver information will automatically be included in the PSR for the relevant pay period.

Interested in finding out more about PAYE Modernisation?

  • Download Thesaurus Software’s free eBook for employers, Surviving PAYE Modernisation. In this guide, we discuss the key changes involved with PAYE Modernisation and what employers need to do to avoid non-compliance penalties from Revenue. Click here to download their free guide.
  • Register for Thesaurus Software’s free PAYE Modernisation webinar, PAYE Modernisation: Three Months On!! New Year, New Payroll Legislation, taking place on 14 March, 11.00am. During the webinar, Thesaurus Software and Revenue will discuss what has happened since PAYE Modernisation has gone live and what challenges businesses are facing. Click here to book your place now.

BrightPay & PAYE Modernisation

BrightPay is created by Thesaurus Software – the number one payroll software provider in Ireland. BrightPay include full PAYE Modernisation functionality at no extra cost. We have worked closely with Revenue to ensure that the software is fully compliant.

BrightPay won the Payroll Software of the Year 2018 award at this year’s Accounting Excellence awards. Our products are used to process the payroll for over 200,000 business across Ireland and the UK.

Book a BrightPay demo | Download 60 day free trial

This article was sponsored by Thesaurus Software.