PAYE modernisation – important information for all employers

What is PAYE modernisation?


Revenue is currently implementing a PAYE modernisation project, 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.


The new real time reporting regime will be operational for all employee payments being made from 1 January 2019. This will require employers, agents and payroll providers to review their current business processes and practices so that they meet the new requirements. 


How should employers prepare?


In preparation for PAYE modernisation, employers should ensure that the correct current PAYE processes and procedures are being followed. In particular, you should ensure that you have registered all your employees and have received a tax deduction card (P2C) for each of them.


It is also important to check that you have the correct PPS number for each of your employees. Revenue is making available a new PPSN validation tool to assist with this; it will be available on from mid-April and allow employers to check up to 10 PPSNs at a time.


Revenue is contacting employers in relation to incorrect data and non-compliance that it has been able to identify, but employers should proactively review their own processes and data also. 


What support is available to assist employers?


Keep an eye out for a letter from Revenue this month explaining more about the changes. This letter will contain details of an employer helpline where you can access further support.


Many small employers who do not use payroll software will receive a customer service visit from Revenue from May onwards. It is important to note that this is not an audit, but rather an opportunity to receive support with the PAYE changes. 


In addition, save the date of 9 May for a free SFA Business Bytes seminar on PAYE modernisation. SFA staff and Revenue experts will be on hand to give you more information and answer your questions.


More information will be provided to SFA members throughout the year as the implementation date for PAYE modernisation approaches.

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PAYE modernisation – important information for all employers
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PAYE modernisation – what every employer needs to know
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