Mar 2018
12
The ins and outs of PAYE Modernisation
The objective of PAYE modernisation is to deliver Real Time Information (RTI) so that Revenue, employers and employees have up-to-date information relating to tax deductions and pay. This will improve the transparency and understanding of the PAYE system for all stakeholders. For example, this will ensure that the right tax deduction is made at the right time from the right employees and that employers pay over the correct tax deduction and contribution for every employee.
SMART PAYE sets out the key design principles of the project. The project will meet its objectives while also ensuring the benefits to all stakeholders by working to these principles.
What are the benefits?
For Revenue:
- Statutory in-year returns
- Making compliance easier
- Accurate up-to-date income details
- Reduced customer contacts
- Timely targeted interventions
For an Employer:
- Seamless integration into payroll
- Minimise employer cost to comply
- Abolition of P30s, P45s, P60s and end of year returns
- Right tax paid on current due dates
- Time savings
For an Employee:
- Simplified online services
- Maximise use of entitlements
- Automatic end of year review
- Real time accurate data
- Transparency
Related Articles:
- PAYE Modernisation – What do these changes mean for you?
- Are you ready for PAYE Modernisation?
- What do I need to know about PAYE Modernisation?
Thesaurus Payroll Manager | BrightPay Payroll Software
Feb 2018
22
Getting Ready for PAYE Modernisation
January 2019 will see the introduction of PAYE Modernisation - the most significant reform of the Irish PAYE system since its introduction in 1960. This new system will mean that employees’ pay and deductions will need to be reported to Revenue in real time.
PAYE Modernisation will be operational for all employee payments being made from 1st January 2019 and will make it easier for Revenue, employers and employees to ensure that the right tax is deducted and paid at the right time.
As a result, employers and payroll bureaus will need to review their current business processes and practices in order for the new requirements to be met.
Free PAYE Modernisation Webinars
To help with the rollout of PAYE Modernisation, BrightPay by Thesaurus Software have teamed up with Revenue to bring you free online training webinars. These webinars are designed for employers and payroll bureaus to discuss what PAYE Modernisation will mean for your business and to help you prepare for the transition to the new system.
Our next PAYE Modernisation webinars take place in March and are free to attend. Guest speakers include Sinead Sweeney (Revenue) and Sandra Clarke (Irish Tax Institute).
- 27th March @ 11.00 am
Employer Webinar: Are you ready for PAYE Modernisation?
Find out more | Register here - 28th March @ 11.00 am
Payroll Bureaus: Getting ready for PAYE Modernisation (CPD Accredited)
Find out more | Register here
If you are unable to attend the webinar at the specified time, simply register and we will send you the recording afterwards.
Sign up to BrightPay’s newsletter
GDPR is changing how we communicate with you. After May 2018, we will not be able to email you about webinar events, special offers, legislation changes, other group products and payroll related news without you subscribing to our newsletter. You will be able to unsubscribe at anytime. Don’t miss out - sign up to our newsletter today!
Feb 2018
5
PAYE Modernisation - Why it’s the SMART choice.
The current PAYE system is changing. The new system will be known as ‘PAYE Modernisation’. This change will be the biggest to hit PAYE since it was introduced almost 60 years ago. PAYE Modernisation will affect every business across the country. Instead of submitting an annual P35, employers will now have to calculate and report their employee’s pay and deductions as they are being paid.
PAYE Modernisation will no doubt be a huge change for employers but ultimately, employers will see a benefit from the change. Here are some of the key benefits employers can expect to see from PAYE Modernisation -
- Seamless integration into payroll.
- Minimize employer cost to comply.
- Abolition of P30s, P45s, P60s and end of year returns.
- Right tax paid on current due dates.
- Time savings.
We already have the relevant experience to ensure that PAYE Modernisation will be a seamless process for employers. In our BrightPay UK payroll software, we implemented what’s called RTI or Real Time Information which is a similar concept to PAYE Modernisation. Book a demo today to see what PAYE Modernisation will look like on your payroll software.
Related articles:
PAYE Modernisation - Are you ready?
Revenue moves to PAYE Modernisation/ Real Time Reporting
New Automatic Enrolment pension system to be in place by 2021
The objective of PAYE Modernisation
Thesaurus Payroll Software | BrightPay Payroll Software
Jan 2018
22
How will PAYE Modernisation affect your payroll bureau? Only 10 Places Left!!!
Revenue are joining Thesaurus Software for a series of free, CPD accredited webinars detailing what you need to know about PAYE Modernisation.
How will PAYE Modernisation affect your payroll bureau?
There are just 10 places left for our next webinar which takes place this Thursday! With almost 1,000 accountants and payroll bureaus already registered, this is your last chance to register.
Agenda
- An introduction to PAYE Modernisation including recent changes
- What direct effect will this have on employers?
- What direct effect will this have on employees?
- What are the possible downsides for employers?
- Revenue’s delivery schedule
- The role out of PAYE Modernisation in the UK
- Processing manually or using payroll software?
- The letter of engagement
- How will PAYE Modernisation affect your payroll service
- Communicating these changes to your clients.
Don’t miss out - book your place now!!
Payroll Bureaus: Getting Ready for PAYE Modernisation
The next webinar in the series takes place in March where there will be a key focus on what payroll bureaus need to do to prepare for PAYE Modernisation.
Subscribe to our Newsletter
We have lots more webinars scheduled over the coming months. Don’t miss out - make sure to sign up to our newsletter today! You will have the option to unsubscribe at any time.
Thesaurus Payroll Manager | BrightPay Payroll Software
Related Articles:
Jan 2018
8
GDPR unravelled! Find out what you need to know to comply
Get ready as more legislation hit Irish and European businesses. The objective of the recent EU General Data Protection Regulation (GDPR) is to bring data protection standards up-to-date and to ensure that individuals in the EU are appropriately protected from privacy and data breaches. It comes into effect on 25th May 2018, however this date is a deadline as opposed to a starting point.
Business owners who start looking at GDPR on or after the 25th May will be at serious risk of non-compliance. You will need to act now to understand and prepare for GDPR well in advance of the May deadline. Over the next few months, it would be advisable to set aside some time to focus on being fully compliant by the 25th May 2018.
BrightPay is committed to helping our customers and others understand the impact of GDPR. We have designed free webinars for accountants and employers to take you through the key steps to be GDPR compliant.
Register now for our free webinars which take place over the coming months.
Agenda
- What is GDPR and why is it being implemented?
- Why employers need to take it seriously
- How it will impact payroll bureaus
- How to prepare for GDPR
- How we are working to help you
Employer Webinar: 30th January - Register here
Bureau Webinar (CPD Accredited): 8th March - Register here
Other Free Events
How will PAYE Modernisation affect your business?
The existing PAYE (Pay As You Earn) system was introduced nearly sixty years ago ensuring that correct deductions are made relating to pay and tax. From 1st January 2019, this system for PAYE will undergo a long overdue update called PAYE Modernisation. Under the new legislation, whenever Irish employers pay their employees, a file must be electronically submitted to Revenue containing details of these payments.
- How will PAYE Modernisation affect your business?
- Guest Speaker: Sandra Clarke (BCC Accountants)
- Guest Speaker: Sinead Sweeney (Revenue)
Employer Webinar: 24th January - Register here
Bureau Webinar (CPD Accredited): 25th January - Register here
Jan 2018
4
PAYE Modernisation is coming… are you ready?
The Irish PAYE system is currently undergoing a massive overhaul, with new changes being implemented from 1st January 2019. This is called PAYE Modernisation. The existing system was introduced nearly 60 years ago and so this update is long overdue.
With PAYE Modernisation, employers, or bureaus on their behalf, will need to submit an electronic file to Revenue each time an employee has been paid. This real time reporting will enable Revenue to ensure that employees are receiving their correct tax credits and cut off points at all times.
Fortunately for employers and payroll bureaus, this real-time reporting will replace most of the “P” forms (P30, P35, P45, P46 and P60) enabling them to reduce their workload. Most payroll systems will automate many of the new processes, whereby electronic files will be automatically created and sent to Revenue at the click of a button.
How will PAYE Modernisation affect your payroll bureau?
Revenue is joining Thesaurus Software for a series of free, CPD accredited webinars. The webinars are customised to both employers and payroll bureaus for them to find out how they will be affected by PAYE Modernisation.
- Employer Webinar: Wednesday 24th January - register here
- Bureau Webinar: Thursday 25th January - register here
Our previous PAYE Modernisation webinars were highly sought after with over 2,000 employers and payroll bureaus in attendance. Places are limited - make sure to book your place now to avoid disappointment.
If you are unable to attend the webinars at the specified time, simply register and we will send you the recording afterwards.
Subscribe to our Newsletter
We have lots more webinars scheduled over the coming months. Don’t miss out - make sure to sign up to our newsletter today! You will have the option to unsubscribe at any time.
Thesaurus Payroll Manager | BrightPay Payroll Software
Nov 2017
14
PAYE Modernisation – What do these changes mean for you?
The existing PAYE (Pay As You Earn) system was introduced nearly sixty years ago ensuring that correct deductions are made relating to pay and tax.
From 1st January 2019, this system for PAYE will undergo a long overdue update, but don’t worry, this update will benefit all involved – including employers and employees.
Employers –
PAYE Modernisation will change how employers report their payroll information to Revenue. Every time an employee is paid a file will need to be submitted (electronically) to Revenue, consisting of all details of employee payments, deductions and leaver information. The contents will be similar to the current annual P35, but this file will be submitted every pay period (weekly, monthly, fortnightly, etc.).
The update will also allow employers to submit a new employee’s information before they commence employment with them. PAYE Modernisation / Real Time Reporting (RTR) will result in a reduction in the occurrence of year end over/underpayments of tax.
This new Revenue reporting system is anticipated to be fully integrated into payroll software. Fortunately, it is envisaged that the workload will not increase as a result of PAYE Modernisation.
Employees –
An online statement will be sent before the start of the new tax year which will detail the employee’s tax credits and standard cut-off point (SRCOP). This will be based on estimated income and details available to Revenue.
Employees will be encouraged to make any adjustments to this online statement, including any claims for additional entitlements. This differs from the current system where an employee is required to wait until the end of the tax year to apply for any refund as a result of overpayment of taxes or to find out if there are amounts due to Revenue as a result of underpayment of taxes.
P60s will be abolished, employees will instead have access to their pay and tax record online, this will be updated on an ongoing basis throughout the year as they are paid. This will enable Revenue to carry out periodic reviews to identify if employees are utilising their tax credits and SRCOP to the maximum effect (e.g. where an employee has 2 employments) and, where applicable, employees will be prompted to reallocate tax credits and SRCOP.
Related articles
- PAYE Modernisation - Are You Ready For January 2019?
- Revenue moves to PAYE Modernisation
- Auto Enrolment Planned for Ireland by 2021
- 2018 and Beyond
Nov 2017
6
PAYE Modernisation - Are You Ready For January 2019?
Revenue has released an information leaflet titled “PAYE Modernisation – Are You Ready?”. This kick-starts their awareness campaign for businesses to get ready for payroll changes called PAYE Modernisation or Real Time Reporting (RTR). Revenue outlines the steps that all employers need to take in order to ensure that their current records and obligations are up-to-date and correct.
PAYE Modernisation will change how employers report payroll information for their employees to Revenue. A file will need to be submitted (electronically) to Revenue, containing all details of employee payments. The contents are similar to the annual P35, however, this file will be submitted every pay period (weekly, monthly, fortnightly, etc.).
If you are an employer who uses payroll software, then the work involved to comply with PAYE Modernisation will be minimal. However, for smaller employers who do not use payroll software, the process of complying with PAYE Modernisation will be time-consuming and stressful. Currently, these employers make one manual submission to Revenue through their annual P35. With PAYE Modernisation, these employers will be required to make an employer submission to Revenue each pay period in real time. The employer submission will contain details comparable to what currently appears on an employer’s P35 return.
With PAYE Modernisation in mind, Revenue has contacted nearly 400 employers regarding their P35L returns for 2016. These returns contained employees who were never previously registered as working with the employer. This communication reminds those employers of their obligation to comply with PAYE regulations and requests those employers to submit a P46 for the non linked employees currently in their employment, the commencement date should be input as 1st January 2017 for employees that commenced employment before the current tax year. This action will then result in a new P2C (tax credit certificate) being issued for these employees.
Related articles:
Oct 2017
10
BrightPay Ireland - Customer Survey - The Results are in!
Opinions and feedback from our customers matter to us. We love to hear comments and suggestions from users in order to improve the customer experience. Last month we conducted a customer survey to get an insight into what customers think about BrightPay and find out what new features our customers want.
The survey also looked at customer satisfaction rates, software performance and customer support. We were delighted to discover that BrightPay has a 99% customer satisfaction rate. Customers are also highly satisfied with our customer support team, with a satisfaction rate of 98%. Many customers agree that BrightPay saves them time (99.5%) and money (99.4%).
The survey also looked at awareness of PAYE Modernisation. 23% of customers were unaware of this upcoming change to the PAYE system, which will be effective from 1st January 2019. BrightPay’s parent company, Thesaurus Software, recently hosted a number of free PAYE Modernisation webinars, with a guest speaker from Revenue. The webinars incorporated everything you need to know about PAYE Modernisation. Watch the PAYE Modernisation training session on demand.
Customer Testimonials
We also received a number of customer testimonials from the survey - all of which will be added to the BrightPay website in due course. Some of our favourite testimonials received include:
- "I am now in my fourth PAYE year since I switched to BrightPay. I wish that I had switched sooner. I would have saved a lot of money without any reduction in the quality of service I provided to my clients, not to mention one or, two enhancements."
- "BrightPay is a very user friendly payroll system. The feature to go back and amend a previous weeks payslip for an individual employee instead of having to go back and amend all employees is a great feature."
- "I am very happy about BrightPay Payroll, easy to setup, easy to use, very good value for money. I've recommended it to a couple of businesses. There is the same story, all happy!"
- "Best payroll software I have used. Very user friendly and the reports that can be compiled are great because they can be tailored depending on what you want in the report. Couldn't say enough good things about it! I recommend it to all the payroll users I know."
- "BrightPay is an excellent product. Quick and efficient to use and they have a helpline that is always available to talk you through a query. I would even recommend this product to someone who has little knowledge of payroll because most of the calculating is programmed in."
- "I tried BrightPay free trial. After the first week I purchased it. It was so easy to use. When I rang support, I was answered straight away, no holding, and my query answered quickly and explained that even I could understand it. Since using BrightPay my payroll is a joy to do, easy and quick."
- "BrightPay is very easy to use for my small business. Without it I would be very worried about making a mistake so it gives me total peace of mind."
- "BrightPay has been the perfect fit for our business - it has reduced our workload and in turn increases productivity within our business."
Prize Winners
As a thank you for taking part in the survey, we are giving away four €50 Amazon vouchers. We are delighted to announce that the winners are:
- John Ganly - Blanchardstown Amalgamated Sports Ltd
- Geraldine Grennan - PJ Grennan Ltd
- Elaine Donnelly - Irish Theatre Institute
- Eugene O'Donovan - SME Finance
The BrightPay team will be in contact with the winners shortly.
We appreciate all the feedback received from this year’s survey and would like to say a massive thank you to everyone who took part.
Useful Links
- What is PAYE Modernisation?
- Revenue moves to PAYE Modernisation / Real Time Reporting
- PAYE Modernisation in BrightPay Payroll
- BrightPay Payroll Software / Thesaurus Payroll Manager
Oct 2017
2
Are you ready for PAYE Modernisation?
To raise awareness about forthcoming PAYE Modernisation in 2019, Revenue has commenced its awareness campaign by releasing an information leaflet “PAYE Modernisation – Are You Ready”.
This leaflet highlights the vital steps for new and existing employers to undertake in advance of 1st January 2019, in order to succeed in the imminent taxation system revolution.
The key idea behind PAYE Modernisation is that all communication between employer and Revenue will happen in “real time”. In order to effectively overcome the upcoming challenges, employers are being encouraged to focus on the quality and accuracy of the data they provide to Revenue.
In preparation for PAYE Modernisation, employers are advised to follow several easy steps to guarantee its overall success when it does come into effect in 2019:
- Register as an employer (for new employers)
- Verify the PPSN provided by employees (e.g. check it against a Public Services Card, P45 or other Revenue or DSP correspondence) and where the employee does not hold a PPSN, they should contact the DSP to apply for one.
- Register all employees with Revenue (i.e. P45(3) or P46 where the employee has no P45). Where the new employee has not worked in Ireland before, the employee must register the employment online using the Jobs and Pension service available in myAccount. The Jobs and Pension service can also be used by employees who are changing from one employment to another. Once the employment has been registered, Revenue will issue a tax credit certificate.
- Issue a P45 when an employee ceases employment and submit it to Revenue.
- Ensure an up-to-date tax credit certificate has been received for each employee. The leaflet outlines the basis of tax which should be applied on the first payday of a new tax year in the event that an up-to-date tax credit certificate for that year is not received.
- Ensure a complete PAYE, PRSI and USC record for each employee is held at the end of the tax year.
At Thesaurus Software & BrightPay, we have always strived to deliver excellence in customer service and professional expertise in both Irish and UK payroll. We widely welcome the upcoming PAYE changes. As Paul Byrne, director of Thesaurus Software Ltd, stated during the Revenue's public consultation process held in December 2016:
“Whatever system is adopted, it is important that it represents a step forward for all parties. We are already committed to not charging our customers for the additional development involved. In addition, we are considering making a free version of our software available for micro employers, those with one or two employees.”
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