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Employee Real Time Reporting – Are you Ready?

The most significant reform in the PAYE system since its establishment will take place with effect from the 1st January 2019. Revenue are currently Fully committed to launching the reform seamlessly.

The new ‘real time’ reporting regime will see employers report to Revenue their employees pay and related deductions as they are being paid be that, weekly, fortnightly or monthly.

The revenue commissioners are referring to the benefit of the new system as SMART PAYE, with the real time process providing the following benefits to employers:

  • Seamless integration in payroll
  • Minimised employer cost to comply
  • Abolition of required returns such as P30’s, P45’s, P60’s and annual P35 declaration
  • Right tax paid on current pay dates
  • Time Savings

Revenue has been working with payroll software providers behind the scenes to guarantee systems are aligned to enable the smooth transition and ensure the transfer of data is completed flawlessly.

The revenue has not only issued guide lines on the process to employers but has also issued notices which declare that revenue may attend on site to an employer’s address to review the payroll of employees as well as employer’s processes of employee detailing and their plans to deal with the real time modernisation system.

How do you prepare?

  1. You must ensure that you have registered all of your employees and received an up to date tax credit certificate (P2C) for each of them.
  2. Prepare a full listing of current employees; Revenue is requesting this from employers to ensure consistency between employer records and revenue records with respect to that of the revenue on line system. The facility to provide a list will be introduced on a phased basis throughout 2018 and employers will be notified of when it is available.
  3. In addition, employers need to review their current internal payroll system and processes to ensure it is of adequate efficiency to allow for easy acclamation with the new reform.