Revenue has performed the most significant reform of PAYE system since its introduction in 1960. The new obligations will be effective from 1 January 2019.
The redesigned PAYE system means that employers will be required to report pay, tax and other deductions, as well as details of employees leaving the organisation, at the same time as they run their payroll. This will ensure the correct amounts of Income Tax, Pay Related Social Insurance, Universal Social Charge and Local Property Tax are deducted at the right time and from the right employees.
How this change will affect small and medium sized business?
• The reporting obligations for smaller employers will increase, especially those taking advantage of Direct Debit options. Instead of making one single return per year (i.e P35), it will be compulsory that employers fill in an Employer Submission for each period.
• Where payroll software is not in use, Revenue aim to provide an online data capture mechanism to allow employers to report payments. This may result in time consumption and payroll management costs.
• Amendments to the payroll will be more complex.
• Additional deadlines mean more pressure on management to focus on payroll rather than the day to day running of the business.
• Adapting the new modernised PAYE system might require additional training within the business.
The benefits of outsourcing payroll to Baker Tilly Hughes Blake
At Baker Tilly Hughes Blake, we are training our staff to ensure we are ready to adapt to the new system starting January 2019 and deliver the best quality of work. Focused on small and medium sized businesses, we aim to reduce the payroll workload and make the payroll process simple, smooth, time and cost efficient. Given the combination of our experience and focus on our customer’s needs, we are the ideal payroll provider to assist your organisation with the transition to ‘’real time’’ reporting and minimise the risks you would face as an employer.