By now, all employers in Ireland should know about Revenue’s new PAYE Modernisation legislation. This system came into effect on January 1st 2019 and brought with it a new and improved method of reporting PAYE information to Revenue.
PAYE Modernisation has brought many changes to the payroll process. With the new system, employers are required to send real time payroll submissions to Revenue containing details of their employees’ PAYE information. These submissions must be sent to Revenue on or before the date an employee is paid every pay period. In most cases, this means a file will be submitted either weekly or monthly.
Non-compliant employers can expect Revenue intervention with non-compliance penalties and fines. An employer is responsible for deducting the tax and paying over the liability to Revenue and so non-compliance will result in interest to be paid by the employer.
The current penalty regime includes a fixed penalty of €4,000 for each breach of the PAYE legislation. It also includes a fixed penalty of €3,000 imposed on the company secretary for each breach. These penalties can be imposed on a per-item basis, so if you are even a mid-sized employer, these penalties can build up.
Revenue has teamed up with Thesaurus Software for a series of free PAYE Modernisation webinars. During the webinars, we will look at what has happened since PAYE Modernisation has gone live and what challenges businesses are facing. Click here to book your place on one of our upcoming webinars.