PAYE Modernisation – Paint by numbers (Sponsored)

Oct 02, 2019

 

Eleven months after the introduction of PAYE Modernisation, it’s fair to say that it has been pretty well adopted, but what do the numbers tell us?

Employers and employees in the system

There are approximately 200,000 registered employers in Ireland, and 174,000 have made payroll submissions to Revenue to date. These employers account for 2.6 million employees covering 2.8 individual employments. Of the remaining 26,000 employers who have not made any submissions, some do not have any actively registered employments, while others would be seasonal employers.

Payroll submissions

Employers have made over 4.5 million payroll submissions to Revenue, detailing over 57 million individual payslip line items since PAYE Modernisation came in. There are three methods by which employers can make submissions to Revenue:

  • Direct payroll reporting via payroll software (90% of submissions)
  • Revenue online service (ROS) manual input via ROS screens (9% of submissions)
  • ROS payroll reporting via file upload (1% of submissions).

The high figure for the number of submissions made using ROS manual screens is interesting. Entering payslips manually on ROS is a time-consuming process with several screens to be completed for every entry.

However, while this method accounts for nearly 10% of submissions, it only accounts for 585,000 individual payslips which are around 1% of the 57 million payslips submitted to date.

Of those manual entries, 178,000 were submitted by tax agents, and 56,000 are corrections to existing payslip entries.

Monthly statement acceptance rates

One of the primary objectives of PAYE Modernisation was the elimination of the various “P” forms, including the P30. These have been replaced by a monthly statement generated by Revenue at the beginning of each month and summarises the submissions made by the employer in the previous month.

Employers have until the 14th of the month to review the statement and make any adjustments before accepting the liability. If an employer does not actively accept the statement by the 15th of the month, Revenue automatically deems the statement accepted on their behalf.

The figures from Revenue show that, on average, 30% of all statements are actively accepted by employers, while the remaining 70% is automatically deemed accepted by Revenue. While it may well be the case that many of these employers are checking their statements but not actively accepting them, it is also quite likely that many employers are not even doing that.

There is an adage relating to computer software: garbage in, garbage out; and while your payroll software will try to ensure accuracy, it is ultimately the responsibility of the operator to check that their payroll submissions that they make to Revenue accurately reflect their actual payroll records.

Employee visibility in MyAccount

Another key benefit of PAYE Modernisation is that employees are now able to view their payroll details via the Revenue MyAccount portal. There, they can access the full detail of each payslip that their employer has submitted for them.

To date, a little over half of all employees in Ireland have signed up for a Revenue MyAccount and, of those, less than 100,000 have viewed their payslips.

As employers are no longer required to issue P60s at year-end, it is likely that MyAccount participation rates will increase as this will be the only means by which an employee can view their records for 2019.

Revenue will be issuing each employee with an Employment Details Summary and a preliminary EOY statement which will only be accessible via MyAccount.

Visit www.collsoft.ie to find out how CollSoft Payroll can help you to keep your payroll records up to date.

(This article is sponosored by CollSoft Payroll)